- Rich Paul is one of the finest basketball agents in the world
- Paul has helped his NBA clients earn a whole lot of money
- Paul says even the richest ones can’t always fly private, however
Rich Paul says no matter how rich an NBA player is, they actually can’t afford to fly private all the time. In a clip that has now gone viral, the CEO of Klutch Sports revealed how he tries to make his clients understand that they don’t actually have a lot of money considering their circumstances.
“I have got guys (that are) 22, making $200 million over the next four or five years,” Paul said. “I got several of those guys, right? But the reality of it is I am constantly telling them that’s not a lot of money. Based upon where you’re starting, because you are starting from zero.”
Paul then brought up that an athlete’s career is much shorter than that of an ordinary person. They also have to give up a significant portion of their salaries in taxes.
“Everyone’s not going to be playing till they’re 40, they are done when they are 33,” Paul continued. “That money’s taxed, they’re paying a 55, 51% tax. Not to mention, jeans today, the ones they want that they’re buying in excess, which they probably don’t need, cost two grand, it’s not the same, his jeans cost $25, the difference. And so, it’s all relative.”
Paul then brought up how he’s concerned that athletes flaunt about flying on private jets because it isn’t something they can afford to do all the time.
“No athlete can afford to fly private all the time,” Paul added. “Yet we see so many athletes on the Instagram, flying private. I fly Delta, I cannot afford to fly private and that’s okay with me… I’m just trying to get where I’m trying to go to make the money. I am not trying to spend the money, I am trying to get there.”
That is exactly what the mindset needs to be if you want to be a successful agent. While you and I may think of some of what Paul said as being common sense, it doesn’t end up being that apparent to many. We have seen athletes in the past throw away what could have been generational wealth with reckless spending.
As Paul said, a lot of them don’t come from a lot of money and once they get it, they might not be quite sure on how to spend it. Some don’t realize they won’t get a lot of the money in those contracts either, due to the high rate of taxes.
Take the example of Anthony Davis, one of Paul’s clients. Recently, Davis signed a three-year, $186 million extension, but will actually earn just $24 million per season because of taxes. If you just go by average, you’d think the 30-year-old will make around $62 million per season, but in reality, it’s less than half of that.
Rich Paul Called Out The Freeloaders
Players don’t just spend money on themselves, of course, but also on their closest friends. When you’re the one with millions in your bank account, you feel the need to help those closest to you.
You’ll also attract a lot of people who are just interested in the money, and Paul criticized the freeloaders that hang around NBA players. He believes that the entourage should always provide some kind of value, and the 41-year-old is a great example of that himself.
Paul has been a close friend of LeBron James for decades. And he could have just taken it easy. Instead, he has been a successful agent for LeBron and has become one of the best in the business.
Rich Paul’s Clients Are Reportedly Earning Over $500 Million In Total In 2023-24
While Paul and Klutch Sports tend to get some criticism, the fact is that their clients end up making a lot of money. On the first day of free agency in 2023, Paul got his clients a combined $390 million in new deals.
As per HoopsHype, Paul’s clients will now be making a ridiculous $505.7 million in salaries in this 2023-24 season, the second-most among all agents in the NBA. Whether you like him or not, he deserves a lot of credit for all that he has accomplished.
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