Blog Entry

2 NBA players caught in college investing scandal

Posted on: July 26, 2011 10:07 pm
Edited on: July 26, 2011 10:10 pm
 
Posted by Ben Golliverekpe-udoh

Last week, Gary Parrish and Jeff Goodman of CBSSports.com reported that David Salinas, a Houston, Texas, AAU director and investment manager, committed suicide following an SEC investigation into his financial dealings.

In the week since that news broke, CBSSports.com has linked a number of big-time college coaches to Salinas, with some investing more than $1 million with him. 

On Tuesday, SI.com reported that it wasn't just college coaches who got taken for a ride by Salinas. Indeed, two NBA players reportedly invested money with him as well.  
Two NBA players, 2010 Warriors lottery pick Ekpe Udoh ($350,000) and former Wizards swingman Cartier Martin ($374,000), were confirmed to be clients by SI.
Talk about a horrible way to start your NBA career. Udoh was on the books for $3 million last season, his only year in the league, and is now locked out as a sophomore, waiting until the current CBA negotiations are resolved before he sees another paycheck.

$350,000 is an extremely significant portion of his career earnings, especially if that was the money he put aside for investing. Depending on how much he's sunk into taxes and the usual accoutrements like houses and automobiles, there's no question that this loss hurts. The only question is exactly how bad.

As for Martin, it's even worse. He's played in the NBA for portions of three seasons as a journyeman. His salary for the 2010-2011 was less the veteran's minimum: $854,389.  

Usually we think about NBA players being extravagantly wealthy with coaches making a fraction of what the professional players take home. In this case, however, it's very possible --- indeed, likely -- that the long tenured college coaches embroiled in this scandal will be better able to absorb the losses than the players.

Everyone involved, including the players, should have done their due diligence and known better than to invest such sums without more risk protection. It's almost unimaginably tragic to think about someone working their entire life to pursue their dream of playing professional sports only to see the rewards of those efforts evaporate in an alleged ponzi scheme. Udoh, as a lottery pick, should be able to take this less to heart and bounce back. Martin, however, with no guaranteed future in the NBA, has to deal with the fact that his best financial days could very well be behind him. At the ripe old age of 26.
Comments

Since: Oct 31, 2006
Posted on: July 29, 2011 2:27 pm
 

2 NBA players caught in college investing scandal

no just not a goos typer.




Since: Sep 11, 2006
Posted on: July 27, 2011 7:30 pm
 

2 NBA players caught in college investing scandal

what a buncg of morons you guys are. So becaus ethey make millions it's ok for someone to rob them...

_____________________________

Are you drunk




Since: Oct 31, 2006
Posted on: July 27, 2011 2:49 pm
 

2 NBA players caught in college investing scandal

To overrated... How do you sound like I moron when you are writing... It's called "looking like a moron" when you write or in this case typing

THESAURUS!! USE IT, IT WORKS!




Since: Jul 30, 2008
Posted on: July 27, 2011 1:12 pm
 

2 NBA players caught in college investing scandal

To Mudcats9...before calling people morons, please spellcheck.  See what happens when you don't do that, is...well you sound like a moron.

S P E L L C H E C K!!!!!   Try it, it works.



Since: Jul 27, 2011
Posted on: July 27, 2011 12:54 pm
 

2 NBA players caught in college investing scandal

Even the lowest paid players in professional sports are earning a fortune compared with the average person. As such, their losses are painful, but hardly critical. To suggest a poor journeyman is on a meagre $854k is an insult to the rest of society who can only dream of such riches.

The bigger issue here is why this article describes people as "having worked their entire life" when they are still in their mid-20s. Utterly ridiculous. In the real world most people start to get decent payback in their late 30s and early 40s, having invested 15-20 years of effort in building their skills and experience.

These guys will be fine, but if they are not fine and have no future then maybe the system where they go to college based purely on athletic skills, "earn" a degree, and then play professional sport might need a rethink?

If their degree is of any value, maybe they should use it to get a non-sport career like the rest of sane society.

Simple solution might be to force all professional sports athletes to put half their earnings into a savings scheme (on which proper due diligence is done, and insurance is provided) to stop ludicrous spending in the early years and to guarantee an income in perpetuity?

This is so obvious, I am guessing it is not being done...



Since: Oct 31, 2006
Posted on: July 27, 2011 10:59 am
 

2 NBA players caught in college investing scandal

what a buncg of morons you guys are. So becaus ethey make millions it's ok for someone to rob them...



Since: Nov 25, 2009
Posted on: July 27, 2011 10:48 am
 

2 NBA players caught in college investing scandal

Lottery Picks, like Ekpe Udoh (2010) tend to make millions. 



Since: Feb 8, 2008
Posted on: July 27, 2011 10:45 am
 

2 NBA players caught in college investing scandal

I still don't feel sorry for these guys. Does anyone realize that $854,389 converted in years I'd have to work to earn is 14 years?! Yes, it sucks they lost invested money. For that I do feel sorry, but to claim poverty--uh, uh. Not happening.



Since: May 4, 2009
Posted on: July 27, 2011 10:25 am
 

2 NBA players caught in college investing scandal

did you even read the article? neither of these guys will ever make millions...



Since: Jun 25, 2007
Posted on: July 27, 2011 9:48 am
 

2 NBA players caught in college investing scandal

Most players invests in white bitches


The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com