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NBA Rookie Takes Mom’s Advice and Put His $4.5M Salary In Trust For 3 Years

NBA Rookie Takes Mom’s Advice and Put His $4.5M Salary In Trust For 3 Years

 

Roughly 60 percent of all professional basketball players in the United States file for bankruptcy within the first five years of retirement, according to Sports Illustrated.

But with the help of his mother, Philadelphia 76ers rookie Michael Carter-Williams hopes to avoid that trend.

The 22-year-old basketball player, who is guaranteed an impressive $4.5 million over his first season, has decided to rely solely on his earnings from Nike and Panini trading cards endorsements, according to the Philadelphia Inquirer.

So what about his salary?

Carter-Williams, with the help of his mother, decided recently to lock most of the $4.5 million away in a trust fund for the next three years — and he can’t touch a cent of it.

“With rookie contracts capped in the NFL and NBA, the ultimate financial success of many careers are determined by the second pro contract,” said Matt Dzamba, director of sports marketing at Zambezi, according to The Daily Mail.

“Protecting the first contract by essentially locking it up takes a lot of pressure off the player both on and off the court,” he said.

The rookie’s mother, Mandy Carter-Zegarowski, and her friend run his management team.

“Our goal is to work with Michael to manage his money in a way that will secure his long-term financial future,” Carter-Zegarowski said in a statement obtained by ABC News. “Right now, the focus is not only to save as much as possible, but also to use his unique position to serve as a role model and give back to the communities that continue to support him and his career.”

The idea is simple: Protect the young athlete from living a costly and unwise lifetsyle.

Financial experts, including attorney Kelly Phillips Erb, believe the move is definitely out of the ordinary. But considering the trend of wealthy athletes and entertainers facing financial failure, Carter-Williams’ financial move would seem to make sense.

“Even if an athlete has a million dollars today, it has to last until you’re 65,” said Erb, according to the Mail, agreeing that the rookie’s parents most likely set up the trust to keep his cash safe from unwise spending.

“In professional sports in particular, you’re going to have health problems and your knees are going to go out,’ she said. “His parents are very smart to know he has a shelf life though they hope he’ll go on to good things. But they don’t want him to blow his money on a Lamborghini.”

Provided Michael Carter-Williams budgets wisely and listens to sound financial advice, he will join with at least one other major athlete in avoiding the bankruptcy pitfall common to so many sports stars.

 

 

Source:  The Blaze

27 Comments

27 Comments

  1. patricia

    January 10, 2015 at 10:30 PM

    Good for him, listening to his mom. He is not going to regret it. And I take my hat off to his mom for being such a wise mother

  2. Nigel Nogglet

    January 13, 2015 at 12:39 PM

    If at 22 my mom said she was looking after my finances and took my money away I would stab her

    • Anonymous

      January 13, 2015 at 2:09 PM

      It’s not your life so don’t hate..

    • Anonymous

      January 14, 2015 at 3:39 AM

      Stab you mother? Hah. You are delusional and offensive. Chances are you barely have a high school degree and have no idea what planning and, in particular, compound interest or net present value even means. Fly away, my friend.

    • Chris Z.

      January 14, 2015 at 3:45 AM

      Sorry for being anon. My name is Chris Z and you are an idiot on the internet (shocking).

      ‘Stab you mother? Hah. You are delusional and offensive. Chances are you barely have a high school degree and have no idea what planning and, in particular, compound interest or net present value even means. Fly away, my friend.’

    • Anonymous

      January 14, 2015 at 11:28 AM

      Lol

    • Anonymous

      January 14, 2015 at 3:32 PM

      Thats why your broke

      • Anonymous

        January 15, 2015 at 4:52 AM

        You’re

    • MrBaws

      January 15, 2015 at 5:27 AM

      You clearly aren’t in any position to guide your own finances or your life if you would stab your mother. Let’s start you with a piggy bank and no sharp objects.

    • Anonymous

      January 15, 2015 at 10:09 PM

      Stab yourself sucker!!

    • Anonymous

      January 18, 2015 at 3:48 PM

      Look At what u just said

    • Nem

      January 19, 2015 at 2:10 AM

      I wouldn’t stab her, but I am on the same page. If she hasn’t thought him how to manage money until the age of 22. She will not achieve anything now..

  3. Anonymous

    January 13, 2015 at 12:42 PM

    Seems so obvious that this is the right approach. Sadly these young men either don’t listen, don’t have self-control or their egos are so large they think their careers and highlights will last forever.

    • Christopher B.

      January 19, 2015 at 11:03 AM

      How many people do you know, including yourself, that were taught how to manage a $4.5 million windfall? Being taught by your parents to manage money is one thing. This woman is acting as his manager and not his mother to protect him from the pitfalls that are extremely prevalent in his industry. Surely there is parental emotional investment. This is sound business sense. I bet she and her partner may be earning more clients after this.

  4. Charles Phillips III

    January 13, 2015 at 1:02 PM

    I work closely with a list of young professional athletes and their financial situation. A story such as this is great to see and should serve as an example for both young student athlete and parent. Excellent read, excellent story.

  5. Anonymous

    January 14, 2015 at 6:37 AM

    What about his taxes he gotta pay :0

    • joekofi123

      January 14, 2015 at 10:28 AM

      Ater tax earnings go straight to the trust fund.

  6. jeffgdeutsch

    January 14, 2015 at 8:37 PM

    Mandy Carter-Zegarowski? How many times has this woman been married? She clearly learned a great deal from all the divorce proceedings. #sadbuttrue

    • Anonymous

      January 14, 2015 at 11:02 PM

      I don’t believe she was ever divorced. Her oldest son, Michael, was by a college sweetheart… She is currently married to her 1st, and only spouse.

  7. Anonymous

    January 14, 2015 at 10:56 PM

    He will be glad. Most of these young men let some hot tail girl throw some boots at them and take their money.

  8. chris

    January 15, 2015 at 10:40 AM

    Or he can be an adult and join the other millions of wealthy Americans who entrust their money with a professional wealth advisor. Actually grow his assets instead of having mommy ration him an allowance.

  9. jack

    January 16, 2015 at 3:20 AM

    Lol what a hoe!! I’d be dammed if at 22 my mom tried tell in me how to spend my NBA checks….you know low key she just try Nina get her cut no matter what

    • Anonymous

      January 18, 2015 at 8:51 AM

      Jack you arecan idiot and probably broke

      • Anonymous

        January 18, 2015 at 8:51 AM

        Are an

  10. Pingback: OT: What Every Rookie NBA Player Should Do | Become a Certified Self-Esteem Coach for Children

  11. Anonymous

    January 20, 2015 at 5:41 PM

    Smart cookie

  12. Pingback: Players Financial Stress - Professional Athletes Avoiding Bankruptcy

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