Tater

July 25th, 2015 at 12:57 PM ^

I wasn't sure GRIII made a good decision; I am really glad to see it work out in a three-year contract.  He is going to make a lot more in those three years than many make in their entire "real world" careers.

BlueIsland

July 25th, 2015 at 1:11 PM ^

Ok, ten years of incomed consolidated into three years of work. The key however, is that most likely this three year contract guarantees an additional five as a certified young veteran. That right there will surpass the forty year earnings, of all of us regular dudes.

bacon1431

July 25th, 2015 at 3:40 PM ^

Not necessarily. If you're a career social worker, you're probably gonna make about that (or the equivelant of that after inflation). 

Depending on the district, a teacher might make around that much for most of their career. 

If you're in engineering, medicine/health, business, law, finance or most other industries then yeah, you'd be correct. 

bacon1431

July 25th, 2015 at 4:57 PM ^

Note "depending on the district". My mom has been a public school teacher for the last 18 years and she makes 40k a year and her earnings have been frozen for the last 10 years. I would bet that a vast majority of districts pay more than the 37.5. I think the median for teachers is somewhere between 45-50. But there are still some that make less than that. 

BrotherMouzone

July 25th, 2015 at 6:25 PM ^

She should get her masters. My wife gets a 10k pay bump after 3 more classes and it only goes up from there on out. With us both working in the public school system we can spend so much time with our kids. I wouldnt trade it for a million bucks, literally. Time is everything guys, you only live once.




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bacon1431

July 25th, 2015 at 6:32 PM ^

She shoulda done it earlier. Much too late for her now. She's 61. I guess it would be worth it just because even if she just gets her Masters and then retires, her pension is based on the most money she made in a single year. She is technologically inept as well lol. 

She's fine with it. One of the reasons why the pay has not gone up is because services to students have gone up. And she's in an inner city district with 90% of students living below the poverty line so the services are much needed. 

bacon1431

July 25th, 2015 at 6:32 PM ^

She shoulda done it earlier. Much too late for her now. She's 61. I guess it would be worth it just because even if she just gets her Masters and then retires, her pension is based on the most money she made in a single year. She is technologically inept as well lol. 

She's fine with it. One of the reasons why the pay has not gone up is because services to students have gone up. And she's in an inner city district with 90% of students living below the poverty line so the services are much needed. 

BrotherMouzone

July 25th, 2015 at 6:23 PM ^

If you work in the social work field in the school systems you make about that, except you get 4 MONTHS OFF A YEAR! Im sittin pretty with my 40k and 4 months off thank you very much. Time is an asset and a resource that many undervalue. I get to spend sooooo much time with my wife and kids its awesome. Some guys work their ass off and never see their families. I'll take my life any day to a rich guy working round the clock!




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michgoblue

July 25th, 2015 at 1:34 PM ^

You are ignoring the time value of money. Getting 1.5 million essentially immediately (over three years) is a ton better than getting $37k a year for 40 years. The $1.5 million can earn interest and compound. For example, even if half goes to taxes and agent fees, after 3 years, he is left with $750k. Let's assume that he lives on $37k per year (to use your same numbers), so he has around $650k left. If he invests that ok a safe investment (an annuity-like vehicle), he can easily get 4.5%, so around $30k a year, in interest without touching his 650k. For sitting on his ass for 37 years.



In reply to by somewittyname

MGoChippewa

July 25th, 2015 at 1:52 PM ^

Financial industry, I feel comfortable saying a good chunk of the American public isn't known for their investing/saving prowess. Having more resources should give GRIII a step up on the average Joe. Not to mention, he has a dad who has probably seen colleagues fall victim to poor financial decisions.

bluesalt

July 25th, 2015 at 1:52 PM ^

In addition to all the posts about American income levels, GR3 will make far more over the three years of this contract. Here are the minimum salaries he can make each year, per the NBA CBA.

Year 1: $845,059
Year 2: $980,431
Year 3: $1,051,245

That totals to $2,876,735 over 3 years, or nearly double what you imagine. And again, that's the minimum over three years.

WolvinLA2

July 25th, 2015 at 2:11 PM ^

Why would the Pacers offer anything more than the minimum for a guy on his 4th team before his second season has even started? I'm shocked they'd be willing to lock him up for any period of time. He hasn't proven he's any better than a replacement level player.

I Like Burgers

July 25th, 2015 at 2:46 PM ^

Of course they might offer it (unless they wanted to be worried about making an insulting offer), but that's why you have an agent - to counter that offer. No responsible agent would ever allow his client entering his second year in the league to sign a 3-year veterans minimum contract. That is just all kinds of stupid. If the Pacers like him enough to offer three years, that's enough interest to get more than the minimum.

WolvinLA2

July 25th, 2015 at 3:10 PM ^

If I was his agent and GRIII had the option to sign a 3 year guaranteed contract for the minimum, I'd jump on that in a heart beat.  This is a player that nobody wants.  He was already been tossed aside by two bad teams (and one good one).  Getting one year guaranteed is good work for GRIII at this point.  

Signing a 3-year contract at the minimum is only stupid if you have other (better) offers.  I'm willing to bet GRIII does not.  

I Like Burgers

July 25th, 2015 at 1:59 PM ^

It'll definitely be more than $1.5M. Around $800k is the veterans minimum in the NBA and no team or player signs a three year deal for the league minimum. In fact if Glenn's agent let him sign a 3-yr deal for the league minimum in his second year in the league he should be fired and banned. It'll probably be something like a 3-year $8M deal...and maybe a lot more.

bluesalt

July 25th, 2015 at 2:53 PM ^

It's actually a very common contract for players with 0-2 years experience, to sign for 3-4 years at that level, so that players will not be restricted free agents when they come off the deal. His agent will be judged on what the guarantee level is on it. Getting two years guaranteed for him would be good work. I've been looking around trying to find out the amount of guarantee.. Haven't found it yet.

bluesalt

July 25th, 2015 at 4:25 PM ^

Deals for NBA players do not have to be guaranteed. Most in practice are, but some have partial guarantees, or are unguaranteed until a specific date, etc. Media reports often call these non-guaranteed seasons team options, but that is technically incorrect in NBA contract parlance. For example, Brandon Haywood has a $10.5 million contract this season with Cleveland, but it's completely unguaranteed as long as he's been waived by August 1st. Media reports might call this an option, but it's not, as NBA options have to be exercised by late June, and players cannot be traded if they only have an option year left on their contract. Accordingly, it's disadvantageous for teams to give out team options, except in rare circumstances, over non-guaranteed contracts. So almost every time you hear of a team option, it's probably a non-guaranteed year.

LBSS

July 25th, 2015 at 6:57 PM ^

***EDIT: Fuck, I took too long to write this and now other people have made the same point more succinctly. Damn you all.***

That's not how income works. If he makes $3 million over the next three years, let's say he nets $1.8 million after taxes. A quick Google says some Pacers players live in Carmel. He rents a place there for $2,000 a month, call it $100,000 over three years with rent increases. He's down to $1.7 million. He buys a Land Cruiser to get around town, that's $70,000 if he pays cash. $1.63 million. The team covers a lot of his expenses during the season because they're on the road so much, and let's say he lives relatively modestly beyond that, given his income, (no idea what his spending habits are like, but for the sake of argument) so his monthly expenses are in the $2,000 range. That's another $90,000 and he's down to $1.54 million. Buys some nice gifts for family and friends at Christmas every year, say $40,000 worth. 

Now, if he's smart he's putting most of the rest of his salary into a cheap index fund, just like Warren Buffett says. At the end of three years with the Pacers, he's got $1.5 million invested. If his foot falls off and he's never able to play basketball again after that, assuming a (pretty reasonable) 6% return he's making $90,000 a year to start out, without lifting a finger. Sure, there will be bad years where he might have to dip into the principal, but if he's even a little bit careful he could live on investment earnings alone for the rest of his life. 

Making $1.5 million in a short span is not in any way, shape, or form, equivalent to making $37,500 a year for 40 years. 

bronxblue

July 25th, 2015 at 7:15 PM ^

Well, as a counter he can actually invest that money and get a nice yield, versus a guy making $37,500 a year who doesn't get to realize much on that money beyond its face value because it is spread out.

That said, the point I think he was making was that GRIII is going to make quite a bit more money than the average person will (even UM graduates!!!!) see at his age. 

Avon Barksdale

July 25th, 2015 at 1:26 PM ^

This is certainly good news. Good news for GR3 and even better news for the Michigan basketball brand. It's always great to have a multitude of Wolverines in the professional ranks.

Maize in Cincy

July 25th, 2015 at 1:36 PM ^

Highly unlikely all 3 years are guaranteed, probably an option for year 3.  Glad to see him stick around though, I actually thought he might be able to be a key piece in Philly but who knows what's going on there.

SanDiegoWolverine

July 25th, 2015 at 1:50 PM ^

are option years. he bet on himself last year by taking a one year deal instead of for years like everyone else drafted around him. that didn't work out but looks like he had a shot in Indiana.

bluesalt

July 25th, 2015 at 3:20 PM ^

He didn't really bet on himself last year. The Wolves could offer him no more than two years at the minimum due to salary cap rules. It's not clear what they chose to offer him, but they signed him to the one-year minimum tender after trading for Wiggins, so it's possible that the Wolves didn't want to commit to more, since their situation changed between draft night and when they signed GR3. Most second-rounders in his range signed for 3-4 years at the minimum, with 1-2 years guaranteed, so he's pretty much in the same place as everyone else. Just took a different route to get there.

gmoney41

July 25th, 2015 at 3:33 PM ^

With the pacers moving towards a fast pace style of play, I hope gr3 can stay on this roster. He could be a decent role player in Indy.

MGoChippewa

July 25th, 2015 at 9:37 PM ^

but with Paul George playing more PF this year in a new small ball system, GRIII could steal some minutes. It's just Solomon Hill and Chase Budinger in front of him, with CJ Miles probably playing a chunk at SF too. Hill and Budinger are both more established, but neither is a guarantee to outperform GRIII going forward. Hill's just not that special and Budinger's always hurt. GRIII just needs to strike once the iron gets hot.