Kobe Bryant Is a Brilliant Investor

Moneybox
A blog about business and economics.
Nov. 1 2013 1:54 PM

Kobe Bryant Made $24.4 Million Today

186260052
Who knew Kobe was such a savvy investor?

Photo by Jeff Gross/Getty Images

Matthew Yglesias is on vacation.

If basketball has taught me anything, it’s that I shouldn’t play it. But it’s also taught me to appreciate the bananas and brilliance of the game. An example of the latter: According to SportsCenter, Kobe Bryant has negotiated his contract in such a way that he’ll be paid most of it today.

"Most of it" means $24.4 million. His total salary is just under $30.5 million.

Advertisement

The biggest benefit from this—said without being able to see into Bryant’s brain—is simply the time value of the money. Since the regular season runs from the end of October into April, he’s got six months of return on whatever portion of that salary would have been held from him until April. As a completely cursory point of reference, 5 percent return on $24.4 million over a year is about $1.2 million.

The move also secures him against any bankruptcy issues, or any new taxes that might creep up next year. ESPN notes that he will take-home "closer to $11 million." While the state taxes that athletes face while playing on the road raise questions that are probably fascinating to that person you only went on one date with, ESPN also says those are credited to Bryant’s California income tax, which already has the highest of any state. In other words, I don’t see how this would help Bryant tax-wise.

Oh, and did I mention that, thanks to his torn Achilles' tendon, Bryant isn’t even playing right now?

Sean Vitka holds a J.D. from Boston College Law School. He was a legal fellow at the Open Technology Institute and a Google Policy Fellow at Georgetown Law.

TODAY IN SLATE

Politics

Smash and Grab

Will competitive Senate contests in Kansas and South Dakota lead to more late-breaking races in future elections?

I Am 25. I Don’t Work at Facebook. My Doctors Want Me to Freeze My Eggs.

The XX Factor
Oct. 20 2014 6:17 PM I Am 25. I Don’t Work at Facebook. My Doctors Want Me to Freeze My Eggs.

Republicans Want the Government to Listen to the American Public on Ebola. That’s a Horrible Idea.

The Most Ingenious Teaching Device Ever Invented

Tom Hanks Has a Short Story in the New Yorker. It’s Not Good.

Brow Beat

Marvel’s Civil War Is a Far-Right Paranoid Fantasy

It’s also a mess. Can the movies do better?

Watching Netflix in Bed. Hanging Bananas. Is There Anything These Hooks Can’t Solve?

The Procedural Rule That Could Prevent Gay Marriage From Reaching SCOTUS Again

  News & Politics
Politics
Oct. 20 2014 8:14 PM You Should Be Optimistic About Ebola Don’t panic. Here are all the signs that the U.S. is containing the disease.
  Business
Moneybox
Oct. 20 2014 7:23 PM Chipotle’s Magical Burrito Empire Keeps Growing, Might Be Slowing
  Life
Outward
Oct. 20 2014 3:16 PM The Catholic Church Is Changing, and Celibate Gays Are Leading the Way
  Double X
The XX Factor
Oct. 20 2014 6:17 PM I Am 25. I Don't Work at Facebook. My Doctors Want Me to Freeze My Eggs.
  Slate Plus
Tv Club
Oct. 20 2014 7:15 AM The Slate Doctor Who Podcast: Episode 9 A spoiler-filled discussion of "Flatline."
  Arts
Brow Beat
Oct. 20 2014 9:13 PM The Smart, Talented, and Utterly Hilarious Leslie Jones Is SNL’s Newest Cast Member
  Technology
Future Tense
Oct. 20 2014 4:59 PM Canadian Town Cancels Outdoor Halloween Because Polar Bears
  Health & Science
Medical Examiner
Oct. 20 2014 11:46 AM Is Anybody Watching My Do-Gooding? The difference between being a hero and being an altruist.
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.