[Yahoo]Derrick Coleman is almost $5 million in debt

That 87 mil was probably closer to 48 after taxes... it's not like it matters to anyone here though.

 

With my spending habits I think I would be pretty good if I made what a lot of these NBA players make.

Then again I have never had that much money so who knows.

 

He just joins the list.

 

Geez...I've never had that type of money, so I obviously have no idea what it's like, but I can't even imagine what type of spending it would take to completely squander that money.

 

This happens all the time. I remember reading that 60% of NBA players go bankrupt after a few years. After years of luxurious spending, they just lose all money management skills.

 

That's what happens when you don't concentrate on your education at all. I am guessing guys like him were given an easy pass through high school and college and never really learned anything.

That said, you still have to be a dumb ass to blow $87M. No sympathy.

 

The article made mention how he lost most of his money trying to help struggling communities.

 

Yeh, seriously guys. If you guys knew more about his story, you wouldn't dismiss it to just horrible management. It was indeed, bad management, however he was trying to help rejuvenate his old childhood neighborhood. Its a tragic story, trying to do too much for his neighborhood backfired on him. This is probably where he lost most of his money, and about 40% from unnecessary stuff, like the 5 fur coats lol.

 

they need to talk to Yao and learn how to save money..

 

His heart was in the right place, but his brain was missing.

There's no way he would have overcome the massive job losses in manufacturing in Detroit. They need huge companies to move in, not small business, to turn it around the economy. He could learn something from Magic Johnson about investing in struggling communities. It's too late now though.

 

Are you implying that $48M is not enough to live on?

 

Cue Patrick Ewing "Sure, we make a lot of money, but we spend a lot, too."

It is true in a different context. How much someone spends and the price of the items they purchase can be relative to how much they make. The problem is instead of 2 modest cars like a middle income family will get, athletes buy 6 Lamborghinis and Ferraris with depreciating value. Or they get themselves into trouble and have to spend half their estate on lawyer fees to clear their names. and the money they freely give out to their entourages.

How can you not keep 2 million out of 40 million in a "DO NOT TOUCH" savings account. You cant save everyone.

 

It depends on how what you spend the money on. Naahh.. If he lost most of money in investments, then the capital losses would lower the amount of his taxes paid.

Taxes can be reduced too. Many wealthy people have tax loop holes and business deductions and investment deductions that aren't available for people who live only on payroll salary.

Magic Johnson made less than $50 mil playing basketball and endorsements. Magic Johnson Enterprises is worth $700 mil and is involved in marketing, movie theatres, and a movie studio. He partnered with Starbucks 50/50 to develop some locations in the inner city, like Harlem.

I am sure Magic would have taken Coleman on his other projects. Extra money and investors are helpful with larger projects.

 

Here's a tip, when you have that much money NEVER TRUST ANYBODY. They will make it vanish.

In general, when it comes to money don't trust anybody. If you want to start a business venture, go for it. If you want to splurge, by all means have fun. Trust others with your assets? Never.

 

Not if he had hired someone smart to manage his finances.

Dodger owner Frank McCourt and his wife made $108 million from 2004 through 2009. On that sum, they paid $0 (ZERO) in federal and state income taxes. Most people can't even begin to imagine the tax loopholes available to someone who makes that much money.