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Examples show their players how to avoid making the same financial mistakes some former players have in recent past.
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PostGame Advisor Network - Professional Player "Gap*"
Even great players of the game need to plan for their future Gap* - when they are no longer earning.
Some real early examples show there is a large need for solid financial planning in this sport.
The NBA bases its pension on the number of years its athletes have been in the league. Benefits originally went solely to those playing at least three seasons after 1965. But a revision in 1988 extended coverage to those playing at least five seasons prior to 1965, with pre-1965 players receiving at least $100 a month per season and post-1965 players receiving at least $200.
That monthly payment has not increased dramatically since 1988. In 2001, it was only at $306.34 per month for each season played -- regardless of performance. Meaning both Michael Jordan and the 12th man on any bench would get the same $50,000 after a 14- or 15-year career.
After playing in the NBA for three seasons a player is vested for a pension. The pension pays $306 for every month in the NBA (e.g. Player A played in the NBA for 17 seasons or 204 months. 204x306=62,424. Player A's pension will be $62,424 per year or $5,202 per month. A player with only three years in the NBA would get $11, 016 per year or $918 per month.) Players start collecting the pension at the age of 50. A player can opt to collect the pension at the age of 45 but only two-thirds of what it would be at 50.
Let's start you plan way before you retire!
*Average nba career is 4 years starting at say 22 so the gap is the time between say age 30 and 50 when full benefits kick in.
Players Gap Their Financial Future
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