The pay-scale for the first round of the NFL Draft is quite the payday. According to spotrac, the first overall pick in 2020 is slated to earn $37.1 million with $24.6 million in a signing bonus. When the Ravens pick at No. 28, their selection will make $12.4 million with $6.6 million in a signing bonus. Obviously, this is life-changing money and it’s easy to burn through that kind of cash without realizing it, so CB Byron Jones recently tweeted some advice for the young pro’s prior to being drafted.
My advice to 2020 rookies:— Byron Jones (@Byron31Jump) April 23, 2020
DO NOT SPEND YOUR MONEY. That number you see on your contract is fake. You will pay roughly 40% to 50% in taxes, agent fees, union dues, 401k account + necessary insurance. Also, a large portion of your contract is NOT GUARANTEED. (1/5)
Do not live a lavish lifestyle. Although your mom may deserve it, she does not need a $100,000 car. She does not need a $1,000,000 house. It is not the time yet. If you protect your money early, you can live a comfortable life forever and provide for your family. (2/5)— Byron Jones (@Byron31Jump) April 23, 2020
You can raise the standard of living for your family (top education for your kids, healthcare, low crime neighborhoods) but you must be PATIENT. Come up with a modest monthly budget, learn + see the power of compound interest as you invest, understand tax implications. (3/5)— Byron Jones (@Byron31Jump) April 23, 2020
Use the NFLPA to find credible financial advisors. Interview a few and ask honest, hard questions before you make a decision. Don’t use your uncle’s friend because he claims he can get you 50k on your tax return. (4/5)— Byron Jones (@Byron31Jump) April 23, 2020
In the wise words of Marshawn Lynch “SAVE YO CHICKEN”. Welcome to the NFL. (5/5)— Byron Jones (@Byron31Jump) April 23, 2020
Just like the first time you saw your paycheck and saw taxes ruin your $8.00 an hour pay, the same goes here but on the million-dollar scale. Far too often we’ve heard or read stories about players losing millions because they didn’t receive proper advice or guidance and their money gets torched by family, friends or shady investors. Hopefully, we won’t be reading about these stories in five or so years about the incoming class.