Why The Sticker Price Of Hundred Million Contracts Tells Only Half

Odell Beckham Jr. ignited discussion inadvertently while guesting on The Pivot Podcast, where he sought to clarify the complexities behind seemingly lucrative deals. Speaking candidly, he examined a five-year, $100 million contract, revealing, “It translates to approximately $60 million after taxes.” Beckham emphasized that expenses such as purchasing vehicles or homes reduce the perceived longevity of such wealth. Immediate reactions branded him as entitled, missing a crucial insight into the financial pressures of professional athletes.Research from SmartAsset exemplifies these challenges, revealing that many NFL players can lose nearly 50% of their income to various taxes, including the burdensome jock tax often incurred during games in different states. Similar trends appear across the league, where players in major cities forfeit significant portions of their salary before seeing any pay.Further analyses from MGO CPA illustrate that even a $1 million salary yields only $529,000 post-deductions. The structure of sports contracts poses additional difficulties, as time erodes the value of agreements. Beckham's situation reflects a broader truth; sudden wealth requires astute management amidst finite earning potential. Ultimately, his poignant query lingers: “Can you make that last forever?”