Why not take the Blake Wheeler/ Justin Schultz NCAA route?

[Classicnamesup]

Your idea on making more money is just plain wrong. That is all there is to it, money.

 

[rt]

If you have a full scholarship for hockey it's no longer expensive.

My point is that it's expensive to you. It's expensive to me. It's not expensive to a 22 year old millionaire.

Let's say we're talking about a $120,000 education. You get a full ride scholarship and it's free. During your senior year, at age 22, you sustain a career ending injury. You get the $120,000 dollar education but no professional hockey career. You take your degree and go get an awesome entry-level position making a whopping 50kay annually because you are really, really lucky and interview really, really well. Three years later, after a promotion, you are making 65kay annually at 25 years of age. You've earned something like 150kay so far and can expect to make 205kay(another promotion) in the next three years. So by 29 you've spent zero bucks on education and earned 355kay as a professional.

Flipside, you leave college after your freshman year. Only getting 30kay out of that 120kay scholarship. You are out 90 kay. You play three years of your ELC before sustaining a career ending injury at age 22. With signing bonus, you've earned $3,000,000 in your brief career. You now have to go back to college for your final three years. This costs you 90kay. After college, you take your degree and go get an awesome entry-level position making a whopping 50kay annually because you are really, really lucky and interview really, really well. You expect to make 150kay in the next three years. So by 29 you've spent 90kay on education and earned $3,150,00 as a professional.

So by 29 you are $2,795,000 ahead of the game if you go pro, rather than staying in college. Assuming you suffer a career ending injury at 22.

Ridiculously over simplified, I know. But the general point stands.

 

[rt]

Let's say you earn 3mil on your ELC before washing out of the league. You never went to college and you end up working the cash register at pizza restaurant in a mall food court for the rest of your life. You are terrible at your job and very stupid. You never move up and make only 9 bucks an hour for the next 39 years of your miserable life. That 20kay a year means that you'll have earned 780kay by retirement age. Add in the 3mil, and your life time earnings is 3.78mil.

Lets say you go to college and wash out before you go pro. So about the same age as the previous scenario. You're really smart and get a good job that actually earns. Electrical engineer, or something. You make 50kay annually the first three years, then 70kay for the next three, then 80kay for the three after that, then 100kay for three, then 110kay for three, then 130kay for three and 140kay for three, and finally you cap out at 150kay annually. For eighteen more years you make 150kay. You'll have made 4.29 by retirement age. And that's if you are incredibly well paid your entire life.

Now let's say option A is a little less drastic and you're not a dope. Let's say you earn half of option B. So 2.145mil lifetime. You're getting paid half of what Mr. Successful in the 2nd option gets. Add your 3mil ELC and you're at 5.145m lifetime. You'v just smoked big dog in option B by being just an average Joe with the ELC nest egg.

That's assuming you cant take that lump of cash and get an annual return on it. A percent or two on that fat stack sure beat a percent or two all those years you're just starting out as an engineer.

Here's a little secret in life. You can take this to the bank. If there is an option on the table that earns you three million bucks before your 23rd birthday, you take that option. Always. I promise you won't regret it.

 

[DickSmehlik]

The career injury concern is very overblown and very few NHL players are in the league as 18 or 19 year olds (even top prospects) so if you go to college for 4 years, you shouldn't assume you are automatically losing 4 years of earning potential.

 

[rt]

The career injury concern is very overblown and very few NHL players are in the league as 18 or 19 year olds (even top prospects) so if you go to college for 4 years, you shouldn't assume you are automatically losing 4 years of earning potential.

Risk v. Return. The risk of going pro (in the OP's scenario) is that you have to take a bridge deal of a measly few million per year before you cash out big time. The risk of staying in college is that you never get that pro contract at all. If I'm analyzing risk, I'm going pro every time.

 

[Sam Spade]

 

[Halpysback*]

Career-ending injury in the first few years of the NHL can happen too and is probably more likely... then you'll just make a few million.

Which is great of course but what will you do after that? Going to college, you can actually get the qualifications for a career.

As long as you get an entry-level contract out of college you'll make a few million no matter what.

But once again, you guys are all talking unlikely stuff as if it is likely to happen.

Remind me to never come to you for anything resembling financial advice ever.

 

[ecemleafs]

you lose a lot of money. 4 years of getting paid in the NHL + taking longer to get UFA status.

 

[DickSmehlik]

Risk v. Return. The risk of going pro (in the OP's scenario) is that you have to take a bridge deal of a measly few million per year before you cash out big time. The risk of staying in college is that you never get that pro contract at all. If I'm analyzing risk, I'm going pro every time.

If I am 5th round pick, I agree take the money.

But coming out too early and signing that first contract can potentially cost you $ in the long run. How many prospects make the jump too early and burn out when their game could have benefited from some more development as a minor?

 

[Classicnamesup]

Remind me to never come to you for anything resembling financial advice ever.

Agreed. There are a few people here who are a college degree away from a financial advisor it seems.

 

[KingWantsCup]

Career ending injury in your 3rd year of college.

Annnd we are done here lol.

 

[The Kingslayer]

C.R.E.A.M homie

 

[Hammettf2b]

My point is that it's expensive to you. It's expensive to me. It's not expensive to a 22 year old millionaire.

Let's say we're talking about a $120,000 education. You get a full ride scholarship and it's free. During your senior year, at age 22, you sustain a career ending injury. You get the $120,000 dollar education but no professional hockey career. You take your degree and go get an awesome entry-level position making a whopping 50kay annually because you are really, really lucky and interview really, really well. Three years later, after a promotion, you are making 65kay annually at 25 years of age. You've earned something like 150kay so far and can expect to make 205kay(another promotion) in the next three years. So by 29 you've spent zero bucks on education and earned 355kay as a professional.

Flipside, you leave college after your freshman year. Only getting 30kay out of that 120kay scholarship. You are out 90 kay. You play three years of your ELC before sustaining a career ending injury at age 22. With signing bonus, you've earned $3,000,000 in your brief career. You now have to go back to college for your final three years. This costs you 90kay. After college, you take your degree and go get an awesome entry-level position making a whopping 50kay annually because you are really, really lucky and interview really, really well. You expect to make 150kay in the next three years. So by 29 you've spent 90kay on education and earned $3,150,00 as a professional.

So by 29 you are $2,795,000 ahead of the game if you go pro, rather than staying in college. Assuming you suffer a career ending injury at 22.

Ridiculously over simplified, I know. But the general point stands.

You forgot about taxes and agent fees. That's more than half your money right there.

 

[rt]

You forgot about taxes and agent fees. That's more than half your money right there.

You're paying taxes in any of the scenarios. Gross income is a little more simple for demonstration. I left out about a million different factors. The point hasn't changed. Semantics or no.

 

[The Head Crusher]

Takes you longer to adapt to the amount of games played at the professional level in a season.

 

[Hammettf2b]

You're paying taxes in any of the scenarios. Gross income is a little more simple for demonstration. I left out about a million different factors. The point hasn't changed. Semantics or no.

I think it makes a big difference when you saying a guy makes 3 Mil in the pros before the injury. In order for that player to make 3 mil after taxes and agent fees, he would have had to make a lot more than that.

 

[rt]

I think it makes a big difference when you saying a guy makes 3 Mil in the pros before the injury. In order for that player to make 3 mil after taxes and agent fees, he would have had to make a lot more than that.

All figures were gross income. In each scenario. Do you really think breaking it down annually by federal bracket and individual state rates is going to change the point? I'm also clearly not adjusting for inflation. Or the likelihood of seven to ten illegitimate children to pay child support on or the return to the gold standard or being conquered by the Chinese.

 

[Classicnamesup]

I think it makes a big difference when you saying a guy makes 3 Mil in the pros before the injury. In order for that player to make 3 mil after taxes and agent fees, he would have had to make a lot more than that.

Do you have a job? Do you pay tax on your income, even if it isn't 3M a year?

The bracket is different at the start but you're really arguing nothing. The poster is absolutely correct that the money isn't even comparable.

 

[Cawz]

Career-ending injury in the first few years of the NHL can happen too and is probably more likely... then you'll just make a few million.

Which is great of course but what will you do after that? Going to college, you can actually get the qualifications for a career.

Which you can do after your career ending injury as well, plus you'll have a few million to help pay for your schooling.

 

[quat]

I'd like to add, that there's a pretty good chance that your life experience playing in or close to the NHL will be really helpful when returning to college after you're done. I'd say that older students tend to be a lot more self motivated and MAY likely get more out of their education.

 

[Cawz]

I'd like to add, that there's a pretty good chance that your life experience playing in or close to the NHL will be really helpful when returning to college after you're done. I'd say that older students tend to be a lot more self motivated and MAY likely get more out of their education.

Absolutly. I've heard of quite a few retired athletes going on to post-secondary. You understand the world and yourself a bit better, instead of going into a program becasue your friends are going into it or becasue they have the best parties or most girls or something stupid like that (yes, I'm speaking from experience).

 

[MarkGio]

Still stuck as an RFA, only you get to pick the team.

I'd contest it's more money to go the Kevin Hayes route. There's no way he'd be getting the minutes (and therefore points) in the Blackhawks system. This year he has a chance to get big minutes in a cup contending team, which likely increases his value moreso than being stuck in the AHL

 

[Habsrule]

Still stuck as an RFA, only you get to pick the team.

I'd contest it's more money to go the Kevin Hayes route. There's no way he'd be getting the minutes (and therefore points) in the Blackhawks system. This year he has a chance to get big minutes in a cup contending team, which likely increases his value moreso than being stuck in the AHL

I get the Kevin Hayes scenario but the OP stated that this is for a star prospect. I am not taking anything away from Hayes but he was never considered a blue chip prospect.

 

[Habsrule]

If you can be that 25 year old and have two million saved up and earning two percent interest you would be making $3,333 a month or 40k a year. That is interest alone. Now that is not a lot of money but you have to assume that your hour and vehicle is paid off. If players are to live a modest lifestyle and buy just a million dollar house then they should be set easily for life.

 

[madmike77]

If you sign with the team that drafted you before finishing college, you get the clock ticking on your UFA status sooner and that's where the big money is.