Budgeting: Coming out of college and making $500k means NFL players can spend money on things that other people their age can’t afford.The average person receiving $500k over 8-10 years will pay less in taxes because that income is spread out over multiple years, and they get to start from $0 each year. By the time a player receives $500k in one year, he will have been hit hard with taxes. That benefits lower-earning taxpayers and greatly impacts NFL players. The IRS doesn’t consider how much you made last year or will make next year when determining how much you owe THIS year.
Taxes: The average college graduate making $50k per year is going to benefit from paying less taxes due to lower tax rates.2 So, why is it that the average ex-NFL player doesn’t look, financially at least, like your average retiree? The NFL minimum rookie salary ($495,000 in 2019) is almost 10 TIMES what the average college graduate receives for an entry-level salary! 1 The average person in the workforce with a college degree earns about $2.25M in their lifetime, or at least what NFL players will earn over the life of their rookie contract (first four years). But, what’s next? It’s a well-known fact that the average NFL career is 3.5 years.
After the stadium lights turn off, what’s next? Oftentimes, an NFL player’s first full-time job is playing professional football.
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