I struggle with the money thing because how is your life different at $5/m a year and $15/m a year and $25/m a year?
Seems to me your life is going to be pretty amazing no matter what. My thoughts more money would cause me more stress because more people will want part of that.
Maybe it's a pride thing or maybe an extra few million a year makes a different in the comfort of life.
I get that it's a business but after the first few million what's the difference in quality of life?
Yes, but you're looking at this as if this is a job that will last them until they are 60 years old and retire. That's not the case. The difference between $5M and $15M for a four year contract is huge when you consider that for many of these guys they may not have a skill that can apply to a future career when basketball is over.
Let's say Smart, starting from next year makes $7M/yr on average for the next seven years. He could make more during the next four, maybe less in the subsequent three. But let's say $7M/7yrs. That's $49M and he's what 32 years old?
Now what if he makes on average $15M over the next seven years? Let's say it's $17M/yr for the next four and then $12.33M for the following three. And that ends his career. That's $105M.
Now let's say he lives to be 82 years old, that's another 50 years.
In the first scenario he has about $1M yr to spend, if he budgets wisely, but pays about half of that in taxes/agent fees. That's $500K left. Not bad for most folks, but certainly not super-rich.
But what about in 25 years? $500K in 25 years would be like $286K today. Still, pretty good money.
But in the second scenario those numbers almost double. He could spend $1M/yr and still make it to 82 while solvent.