{"id":9131,"date":"2013-06-29T12:00:18","date_gmt":"2013-06-29T16:00:18","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=9131"},"modified":"2013-06-29T14:06:07","modified_gmt":"2013-06-29T18:06:07","slug":"the-economics-of-nba-draft-picks","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2013\/the-economics-of-nba-draft-picks\/","title":{"rendered":"The Economics of NBA Draft Picks"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/06\/062913_1637_TheEconomic1.jpg\" width=\"639\" height=\"432\" \/><\/p>\n<p>The NBA&#8217;s 2013 draft ended this week with several players being offered millions of dollars. Yet 60% of the players in the draft are likely to be bankrupt five years after retirement. Matthew Heimer looked at why:<\/p>\n<ul>\n<li>Our understanding of NBA careers is distorted by the distinction between the average and the median. If Bill Gates walks into a bar then on average everybody there is a millionaire. Yet the median gives a more accurate overview of the actual salary class of the bar.<\/li>\n<li>Thus while the average salary of an NBA player may be $5 million, the median is around $2.3 million.<\/li>\n<li>The average NBA career lasts six years \u2013 but the median career lasts just four years.<\/li>\n<li>In fact a quarter of all NBA players only earn for a year before &#8216;retiring&#8217;.<\/li>\n<li>Thus the mdian NBA players makes between $500,000 and $1.5 million a year after taxes, for four years. At 26 they&#8217;ve retired and have no other real source of income.<\/li>\n<li>For a player to avoid bankruptcy they need to start careful management of the money now \u2013 and realize that they can only really afford an upper middle-class lifestyle. Not a millionaire&#8217;s one.<\/li>\n<\/ul>\n<p>Read more about the fate of NBA players, how &#8216;survivorship bias&#8217; distorts the numbers, and more over <a href=\"http:\/\/blogs.marketwatch.com\/encore\/2013\/06\/28\/why-many-nba-draft-picks-will-go-broke\/\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/blogs.marketwatch.com\/encore\/2013\/06\/28\/why-many-nba-draft-picks-will-go-broke\/\">Market Watch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The NBA&#8217;s 2013 draft ended this week with several players being offered millions of dollars. Yet 60% of the players in the draft are likely to be bankrupt five years after retirement. Matthew Heimer looked at why: Our understanding of NBA careers is distorted by the distinction between the average and the median. If Bill [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9130,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/06\/062913_1637_TheEconomic1.jpg","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/9131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=9131"}],"version-history":[{"count":4,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/9131\/revisions"}],"predecessor-version":[{"id":9135,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/9131\/revisions\/9135"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/9130"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=9131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=9131"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=9131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}