Anthony Edwards Should Invest in This

Anthony Edwards was drafted #1 overall in the 2020 NBA Draft out of the University of Georgia. The Minnesota Timberwolves selected the star guard from Georgia in hopes that he'll become one of the next elite scorers in the league.

His rookie contract is only guaranteed for two years where he’ll earn $20 million. The Minnesota Timberwolves have a team option for the next two years totaling $23 million. And if he plays well enough that the Timberwolves want to retain him following his fourth season, then they can give him a qualifying offer of $17.5 million for the fifth season.

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For this video, we’re going to assume he plays well enough to earn five years in the league which will total $60.5 million of salary alone.

The first three years of the contract, Anthony will have a gross pay of $10 million, he’ll pay around $4.88 million in taxes, he’ll pay an agent $300k, and he’ll pay his financial advisor $250k. Anthony’s net take home pay will be $4.57 million from the $10 million he earned.

The most important thing for Anthony is reaching his full potential as a professional basketball player and earning a second contract. 1.7% of his gross income - $170k - will go towards his body & mind. There is no expense we’ll skip regarding his health and well-being.

We’re going to allocate $5k each year to cryotherapy sessions and $10k one time expense for a personal hyperbaric chamber. Anthony plays a very physically demanding sport and his athleticism is what’s going to be one of his defining attributes in leading him to having a long and successful career.

We’re going to allocate $50k per year to a personal chef. Anthony eating right will allow for his body to perform at absolute peak potential. He’ll receive plenty of high class dining during the season so the chef will be used during the off-season and when necessary in-season.

Last, we’ll allocate $100k to personal assistants.

We’re going to allocate 1.6% of his gross income - $160k - to his personal expenses.

We’ll allocate around $40k for food, dining, and entertainment.

Anthony will have plenty of long term safe investments so we’ll allow a little risk with 5% of his gross income - $500k for the first three years - going towards crypto.

We’ll allocate $250k to Bitcoin and $250k to Ethereum. This is a volatile asset class and we will not expect any returns, but we’ll have money there in case it multiplies.

We’ll begin by creating a Holdings Company: Anthony Edwards Holding Co. and place each property in its own separate LLC to be owned and managed by the holding company.

We’ll allocate 35% of his gross income - $3.5 million - to real estate. For the sake of this video, I chose a few different properties just to give you an idea of what the numbers look like and so the down payments would match up. This is just for fun.

Totals:
His portfolio will consist of $1.5 million split evenly with Bitcoin and Ethereum and that’s assuming zero growth.

He will have a $43 million real estate portfolio with $17.7 million in equity (which is 40%). $4 million every year in gross cash flow. Assuming a conservative 50% expense ratio, Anthony will be seeing $2 million in net cash flow every year from real estate.

The index fund will grow to $9 million with a $500k yearly return.

Anthony will be generating $2.5 million in net income every year following his rookie deal. That’s $200k per month for the rest of his life even if no inflation happens. Given that the money printer is overheating right now, this number will probably be much higher.

If he plays well enough to earn a large second contract, then it’s almost irrelevant how he spends the money. These NBA athletes now can earn so much money, it’s hard to fully grasp just how much it is. And if they invest it wisely from the start, they can all have seven figure businesses running smoothly by the time they retire.

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