December 29, 2011; Houston, TX, USA; San Antonio Spurs guard Danny Green (4) attempts to drive the ball past Houston Rockets guard Terrence Williams (1) in the fourth quarter at Toyota Center. Mandatory Credit: Troy Taormina-US PRESSWIRE
Danny Green recently signed a three year deal worth $12 million with San Antonio. You would think that with an influx of guaranteed money in his wallet (his contract is fully guaranteed) that he would blow caution to the wind and embrace the typical NBA lifestyle. Yet Green, who had the wherewithal to finish four years of college, is thinking about saving his money.
Leave it to a Spur.
Green, per his Twitter feed, spoke with Melissa Francis of Fox Business on the NBA’s new plan to increase incentive for players to prepare for retirement. (He happened to be in New York City because of his basketball camp.)
Next season the league will require players to allocate five to 10 percent of their salaries for retirement. They will have the ability to opt out though Green advises his fellow players that they don’t.
“I think it’s a great idea,” Green said “A lot of players go broke or have a lot of financial struggles leaving the NBA. It’s hard for them to transition living a lifestyle and kind of downgrading your lifestyle.”
That would mean donating upwards of $400,000 a year for a player of Green’s stature. A player of LeBron James’ caliber that follows the plan could end up allocating $1.8 million per year. Extrapolated over an entire career and you could save more than $10 million before considering other financial expenditures.
That may seem like excess saving but it’s done to combat the statistics: 60% of NBA players are in financial troubles within five years of retiring.
“You have to learn how to say, ‘No,'” Green said. “There’s a lot of people, lot of reasons that they go broke or struggle financially because they have a lot of friends and family and they like to make everybody happy. You have to be smart and pick and choose who you can say, ‘Yes,’ to.”
The average player plays four years in the NBA, as Green outlined in the interview, and cannot afford to deplete their cash fund immediately. The key to a sufficient lifestyle, Green believes, is careful planning and mental fortitude. And you wonder why he was such a good fit for this team?
The rest of the interview can be found here.