Hoops

Can an NBL career set you up for life?

Recent tax changes announced in the 2018 Federal Budget will hit some NBL stars too- but probably only the stars.

Image rights will no longer be able to be assigned to trusts or companies.

Essentially, any income from image rights will need to be taxed in the individual's name.

Averaging helps with tax but not cash flow week to week so much if you are in a lean contract year which was the question.

There are income averaging provisions.
There is also a well-now exploit for deferring income that is widely in place amongst AFL stars, and I would imagine NBL also.

"then the average lifetime earnings is only about $400K for a player, which with a good accountant could be taxed lightly."

LOL. There's not much you can do if you are on a wage. "Taxed lightly" lmao, it's called the tax bracket, good luck.

I think the average (mean) NBL career is only about 75 odd games (I stand to be corrected if someone has the data), which is say 4 to 5 seasons. Assuming the mean salary is say $90K ($1M spread over a couple of imports and locals), then the average lifetime earnings is only about $400K for a player, which with a good accountant could be taxed lightly.

That $400K (less tax) could be used as a nestegg for later, or a great divorce payout for a spouse or child support..... "18 years, 18 years, she has one of your kids, she got you for 18 years..."

Short answer is "No", an NBL career doesn't set you up for life financially, but if you are a smart guy, then "yes", it won't set you up financially, directly, but the contacts made through the sport could be used to further your career if you are studying.

For example, Jacob Holmes studied law, is now tied up with the NBL player's association so he is using his experiences as a player to benefit others and setting himself up.

If you are looking to make money, build a career, or become a professional ball player, then spending 4 (or 5) years bumming your way through a "General Studies" degree at some 4th-rate American college is definitely a waste.
Not saying its not a good time or a worthwhile experience, but it doesn't really enhance the bottom line.

Obviously if it leads to a pro career, it may be time well spent.

The other mistakes retiring players make is thinking there will always be a job for them in Basketball. Sure if you retire as a "name" there will be plenty of places prepared to offer you a role, but eventually you need to demonstrate some aptitude for coaching.

I get my WNBL tips from him.

Hit up Hammer to invest your dollars, you'll be sweet

I think it only puts you significantly behind if you let it.

I'm no professional athlete, but lived a fairly nomadic life for 12 years, where I worked whatever job I could get when out of Australia, but tried to find better jobs any time I was home. Sometimes that meant less money, but a better industry (I switched from Finance to Government and took less money for a future career I'd be more interested in).

No jobs were for longer than a year and a half and most far shorter. The gaps on my resume were a bit of a hindrance, for sure and I'm a little bit behind friends my own age, but not a lot considering they've been slogging away for years and I've been doing what I wanted.

I think just as much as it might put you in good stead, there'd be countless examples where it's hampered a professional life. e.g., while your peers get their finance degree, you're a dev player for peanuts. Then maybe you're 11th man while friends are finishing degrees and cutting their teeth. If you haven't studied or built up something on the side, you might be mid-twenties and starting cold while others are entrenched in a solid job.

Even if basketball puts you in a reasonable position, you still have to do something with your time. You probably still have to transition to a different trade/job where you're 10-15 years older than others with similar experience.

"You have to have a long career in the NBA to live comfortably off your playing career days. And even then some NBA stars blow it all with bad investments etc and have to get a job."

Not at all. Even 5 years in the NBA making minimum (close to a million) would go a long way to setting you up for the rest of your life if you invested wisely and lived within your means. Then if you manage even one season at the average salary of around $8m, you can absolutely set yourself up for life. For NBA players it is certainly achievable. The reason so many don't achieve it is because they don't spend wisely.

NBL players will need income after hoops though, and the smart ones are thinking of this during their playing time and working on their post basketball careers from day 1. AFL teams do this well these days with internships and the like to get players some experience while earning isn't an issue.

Well, most players move into coaching or Basketball Administration of some sort. And as someone eluded to earlier the whole point of getting a 4-year ride at an American college only helps you for life after basketball. These guys get to spend the majority if not their whole lives doing something they love. I still have my crappy sales targets to achieve and slog for my commission lol.

You have to have a long career in the NBA to live comfortably off your playing career days. And even then some NBA stars blow it all with bad investments etc and have to get a job.

That just isnt possible for an NBL career. Or AFL for that matter.

Playing 4 years at college will get that player a degree with the idea being to transition that qualification into a post ball career. Sounds like a smart concept rather than a waste of time.

Once you'd hit say 30 you'd want to look more closely at the network of sponsors etc that you're working with and hope that you can be a spokesperson and face to that company for the next ten years or so and hopefully that opens some doors but realistically you won't have enough to love off of.

Fascinating to know who wants to work a real job post career (Like Maher as a fireman and Redhage as a financial advisor I think and they are higher echelon money earners) and those that work with foundations and charities and those that are basically starting for scratch from the back of the Centrelink queue

The majority of guys don’t earn more than your average financial accountant or low end lawyer. None of those people can retire on 10 years salary.

There’s a misconception of huge money ($400k Lolz) in the L but for real, these guys don’t do big bucks, not most of them

#607 obviously OP meant players well over $150K. You can't on that amount.

Maher became a fireman, not sure if he's still doing it but perfect example of needing employment after playing. Doesn't strike me as someone that wasted his cash.
As for wasting 4 years in college, having a degree from a good school would be perfect for life after basketball. And if you go to the right school alumni would open doors over others. Better than having to pay big money for a degree here.

No.

"14 x $150,000 per annum

40% goes in tax"


Please I urge you to get a new accountant ASAP because you are getting seriously ripped off.

Yes if a top player who saved and didn't waste money. Which probably none have especially if not single.