Miami Dolphins cornerback Byron Jones offered some financial advice for those college stars who are about to enter the NFL through the draft on Thursday.
Jones, who recently signed a five-year, $82 million deal to join the Dolphins in the offseason, sent a series of tweets detailing what the future rookies should do with their money and what to expect when signing their first contract.
“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,” Jones initially tweeted.
He then cautioned the youngsters against living a “lavish lifestyle.”
“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.”
He then urged future NFL players to budget their money and use the tools the NFL Players Association gives them to help manage the funds.
“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.
“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.”
Finally, he added: “In the wise words of Marshawn Lynch 'SAVE YO CHICKEN'. Welcome to the NFL.”
First-round draft picks can earn as much as $6.2 million to $1.9 million, according to Over The Cap. Seventh-round draft picks can earn more than $632,000 should they get a contract.
Jones was drafted by the Dallas Cowboys in the first round of the 2015 draft. According to Spotrac, he signed a four-year, $8.6 million rookie contract with a $4.5 million signing bonus. He earned a base salary of $435,000 in his first season and an $825,900 base salary in his second season.
Since coming into the NFL, he played in 79 games and recorded 2 interceptions and 349 tackles.