Saturday, August 16, 2014

SMART: Carmelo Anthony Will Take $62 Million of His Contract Money as Advances

Carmelo Anthony has elected to take half of his $22.5 million this season up front. In full, he will take $62 million up front over the course of his deal., reports WSJ.

Anthony, per NBA rules, is taking the maximum allowable 50 percent in advance of his new $124 million deal..

If there is no penalty to taking money now versus later, always take it now. And when paying money out, always pay later rather than sooner if there is no advantage to paying earlier.

I have been on both ends of these type deals and by following the above rules, it has proved to my advantage. Once I took a payment  in advance where circumstances changed and I would have not been paid if I had waited. In another case, a person did not ask for a payment upfront.I would have paid without raising any questions objections at least half of the money stipulated in the contract that we agreed to, but he never asked. Because of developments beyond his control, he was not able to fulfill the contract. If I had paid him in advance, I would have never seen that money again.

Sometimes, it makes sense to demand to be paid upfront. A friend of mine once was doing some work for a lawyer. They were just about ready to go to trial. I told my friend that he should ask to be paid before the start of the trial (the lawyer needed his expertise for the trial) and be adamant about it. I knew the lawyer and his high life style. "If you wait until after the trial, you are not going to get paid," I told him.He didn't take my advice. Seven years later, he is still waiting to be paid even a penny.



  1. Whenever I've some basic computer work for someone, I've generally have always asked for half up front and in cash

  2. Problem is Wenzel, you're a pretty smart guy. You would know how to save and invest the money.

    I'm pretty sure Carmelo has financial advisers and is making smart financial moves.

    But for someone like Allen Iverson, this would be disastrous. He would spend the $60 million in about six months, then run to creditors and start taking out loans against the remaining $60 million. Iverson's advisers actually had to structure his Reebok shoe deal to keep cash out of his hands and pay a steady income stream in the future. Some people let their cash burn a hole in their pocket and can't be trusted with any amount of money.