On Wednesday, former NHL all-star defenceman and current financial entrepreneur produced his second Twitter thread in as many weeks, highlighting some of his various financial findings/experiences as a player within the National Hockey League.
Serving both as a warning and a friendly instructional to current players, as well as educational briefing on average salary and player expenses, the soon to be 48-year-old’s message was posted in what Pronger says will be an ongoing series of exciting stories related to his career, spending habits of past teammates, as well as some financial/investment advice for current athletes.
https://twitter.com/chrispronger/status/1514246460664999942
Pronger's full message is written below:
"When you hear about X player making $30M over 5 years ($6M/yr) you think wow he made it. However that is not always the reality, in this thread I am going to break down how much they take home and where the rest of it goes.
For this thread here is the example:
X player gets $30M paid over 5 years and earn on paper $6M a year. Here is who they pay:
Right off the bat escrow gets taken out of every check. On average about 10%. Most people have no idea about escrow.
This is money that the NHL withholds from players in case the 50% revenue share is not met. In most cases the player never sees this money again. So that’s 10%
$6M salary minus escrow (10% avg.)
- $5,400,000
Next are federal taxes - 37%
We get bi-weekly checks (13) during the regular season. For each of those checks the gov’t gets 37% +-
• $2,000,000
Now you have to pay the local tax. That could be 0% like in TX & FL or as high as 16% in NYC. For this example let’s use 8%. There is another 8%
• $432,000
Next is agents. They vary but typically the average is 3%. BTW that is 3% of the gross not post tax. So there is another 3%
• $162,000
So let’s total this up now. Player X is now netting $2,806,000. That is a lot of money! But now they have to spend a little more money to do their job effectively.
Housing. Typically players are not from the city they play in so they either rent or buy a house (rent $5k month)
For health you typically have a chiropractor, masseuse and trainer that you are paying for in and out of season. ($20k/yr)
Vehicle. Need to get to and from practice and games. ($75k)
And finally nutrition. Nutritionist and food are $6-7k a month. ($60k/yr)
Now this is all the expenses just to be doing their job at a high level and not living the high life. Which certainly happens but not on this thread. Just a reminder these are averages and not fact!
So Player X is netting $2,591,000. Which is around 43% of the total number. Now keep in mind the average career is 4 years and the average salary is $2M. So yes this is still a nice amount of money but most people don’t realize how much comes off the top before they get to invest.
Also keep in mind I am not including when athletes seasons are over they typically go somewhere to relax and unwind. Nor am I including a number of other ancillary expenses that typically come up. For me it was the odd suspension :(
By the way, if you don’t know who I am, I’m Chris Pronger. I played in the NHL for 20 years.
I hope to keep sharing stories on Twitter (so long as you people like reading them!).
So, give me a follow if you want to hear more (@ChrisPronger).
And comment on this thread and let me know what other stories you want to hear.
Thanks for reading!"
X player gets $30M paid over 5 years and earn on paper $6M a year. Here is who they pay:
Right off the bat escrow gets taken out of every check. On average about 10%. Most people have no idea about escrow.
This is money that the NHL withholds from players in case the 50% revenue share is not met. In most cases the player never sees this money again. So that’s 10%
$6M salary minus escrow (10% avg.)
- $5,400,000
Next are federal taxes - 37%
We get bi-weekly checks (13) during the regular season. For each of those checks the gov’t gets 37% +-
• $2,000,000
Now you have to pay the local tax. That could be 0% like in TX & FL or as high as 16% in NYC. For this example let’s use 8%. There is another 8%
• $432,000
Next is agents. They vary but typically the average is 3%. BTW that is 3% of the gross not post tax. So there is another 3%
• $162,000
So let’s total this up now. Player X is now netting $2,806,000. That is a lot of money! But now they have to spend a little more money to do their job effectively.
Housing. Typically players are not from the city they play in so they either rent or buy a house (rent $5k month)
For health you typically have a chiropractor, masseuse and trainer that you are paying for in and out of season. ($20k/yr)
Vehicle. Need to get to and from practice and games. ($75k)
And finally nutrition. Nutritionist and food are $6-7k a month. ($60k/yr)
Now this is all the expenses just to be doing their job at a high level and not living the high life. Which certainly happens but not on this thread. Just a reminder these are averages and not fact!
So Player X is netting $2,591,000. Which is around 43% of the total number. Now keep in mind the average career is 4 years and the average salary is $2M. So yes this is still a nice amount of money but most people don’t realize how much comes off the top before they get to invest.
Also keep in mind I am not including when athletes seasons are over they typically go somewhere to relax and unwind. Nor am I including a number of other ancillary expenses that typically come up. For me it was the odd suspension :(
By the way, if you don’t know who I am, I’m Chris Pronger. I played in the NHL for 20 years.
I hope to keep sharing stories on Twitter (so long as you people like reading them!).
So, give me a follow if you want to hear more (@ChrisPronger).
And comment on this thread and let me know what other stories you want to hear.
Thanks for reading!"
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