The Mike Bibby Case: When $6.2 Million Isn’t Really $6.2 Million
Mike Bibby, Dime #17
When we heard yesterday that Mike Bibby agreed to give up his entire $6.2 million salary for next season in order to be bought out by the Wizards, we posed the following question on Twitter: Is there anything you would give up $6.2 million for? While the answers varied, across the board, people thought Bibby was crazy. But was he? Take a look at exactly how much he would have made next year.
From HOOPSWORLD’s Steve Kyler:
Mike Bibby wouldn’t make $6.2 million next year. Mike is going to lose 10% of that money to the NBA’s escrow system, which insures owners do not pay more than 57% of revenue to players. Players have not seen a return on that money for several years, so lop 10% off the top of that number.
Bibby will then lose roughly 46% to income taxes and professional fees.
When it’s said and done, Bibby may clear $3.02 million next season, assuming there is no work stoppage. If the NBA misses games, that salary number decreases at the rate of $17,500 per day missed to a lockout.
To date, Bibby has earned over $100 million during his 13-year NBA career – and that’s just in salary. At this point, having already played in 80 career playoff games, maybe he just wants a chance to win it all before he’s done.
What do you think?
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March 1st, 2011 at 3:18 pm
The Other Aj says:
“To date, Bibby has earned over $100 million during his 13-year NBA career…”
Unbelievable
March 1st, 2011 at 3:22 pm
neoy says:
still…. respect to bibby for giving up money to win.
March 1st, 2011 at 3:39 pm
Fabian says:
So you subtract the income tax from next years salary but leave it in the “earned over $100 million so far”???? come on Dime..
March 1st, 2011 at 3:41 pm
NTstateOFmind says:
^ LOL… good point @Fabian
March 1st, 2011 at 4:02 pm
First & Foremost says:
It doesn’t sound as cool if you take the taxes out.
Who Wants to Be a Five Hundred Seventy-four thousanaire?
You’ve got to play to win the Multi-Hundred Thousand Dollar Lotto Jackpot.
March 1st, 2011 at 4:34 pm
daghost says:
i was thinking the same thing as Fabian. You can’t fool us intellectual dudes. Funny how to allow yourself to have a “story”, writers will leave stuff out. Out of that 100 million, he’s lucky if he even walked away with half of that loot.
March 1st, 2011 at 4:36 pm
Me says:
going to miami, he won’t be taxed either. and no certainty on your salary next year.
actually a VERY smart move, most likely more guaranteed money than the contract he had.
March 1st, 2011 at 4:37 pm
jimmythesaint says:
Q ; is an NBA accountant paid or worth more than an agent?
March 1st, 2011 at 5:17 pm
flegman says:
poor Bibby, only 3 mill out of 6.2, poor nba players, life is so tough.
March 1st, 2011 at 5:23 pm
smoove chips says:
im just glad he got his financial life straight. At this point he should be able to turn dowm a coupla mill on principle reasons alone. The number of players who aren’t in that position is staggereing(some of them icons).Gotta respect that.
March 1st, 2011 at 5:24 pm
smoove chips says:
been drinkin’ sorry 4 the typos
March 1st, 2011 at 6:46 pm
dagwaller says:
@smoove haha see you there…
Lots of respect to someone that wants to play the game to win instead of to get paid.
March 1st, 2011 at 7:04 pm
Broseidon says:
Seriously what kind of b.s. accounting is this Aron?
If the whole point of the article is about how he would’ve gotten paid less than half of the 6.2 million had he accepted his contract, you can’t turn around and state that he’s “earned” more than $100 million when he’s probably pocketed around 40-50% of that.
GTFOH with your bs writing man.
March 1st, 2011 at 7:21 pm
jdstorm says:
You also need to facor in miami’s lack of personal income tax, and money from the playoffs which players receive on top of their regular season sallary something that he wouldn’t see playing in washington.
On top of that mike will be a free agent next year and probably look to sign a multi year deal which would be harder to do a year later given his age
March 1st, 2011 at 8:08 pm
Bojangles says:
Even though Florida has no personal income tax, he still has to pay the Federal income tax, likely at a rate of around 35%. The difference between Florida and DC for taxes is probably around 8% (D.C. taxes at top rate of 8% compared to no tax rate for Florida). Not a huge difference.
March 1st, 2011 at 8:10 pm
Bojangles says:
Also, agreed with everyone else on the inconsistency of stating $100 million in salary without taking into account agent fees and taxes, which probably lops off about $40-50 million of the $100 million in salary.
March 1st, 2011 at 8:27 pm
north says:
As a Bibby fan I say good for him. He’s doing what he loves and he’s not pulling a Sprewell on anyone. DIME’s math isn’t great, and it’s clearly not about the money for Mike either.
Now that Hinrich is already injured and missing games, do you think he’d re-sign with the Hawks?
March 1st, 2011 at 9:19 pm
Sporty-j says:
Dont listen to these clowns Aron! Good job and wonderful research. I did not know that Dimes had so many female readers…
March 1st, 2011 at 9:44 pm
Dallas says:
I don’t get why the downplay of Bibby giving up money. It’s one of the few examples I can remember of salary being broken down to after tax. Last summer when they were talking about how much people were signing for I don’t remember Hoopsworld, Dime or anyone else taking the time to point out that the numbers were pre-tax.
Also why point out the salary he passes on in post-tax figures and state his past salary in pre-tax figures? The original author has an agenda in his presentation. I’m just not sure why.
March 1st, 2011 at 11:18 pm
du says:
“It doesn’t sound as cool if you take the taxes out.
Who Wants to Be a Five Hundred Seventy-four thousanaire?
You’ve got to play to win the Multi-Hundred Thousand Dollar Lotto Jackpot.”
haha funny how americans have to pay tax on winnings
March 2nd, 2011 at 3:08 am
Adam Dickau says:
Can he pick up a contract next year worth more than 3 million? My bet is it doesn’t matter to him, he just wants to go out with a championship.
March 2nd, 2011 at 8:44 am
Diego says:
Aron screwed up by comparing after-tax with pre-tax $ figures. But in any event, Bibby is giving up solid $, because no way any team pays him to $6.2 mil. for next season (which he gave up) or beyond–at best, maybe half that.
But plus items include: Lump sump payment of this year’s $ on old contract (time value of money benefit); new salary paid by Heat for remainder of this year (plus post-season playoff $); and savings from no FL state income tax, to the extent such tax applies to Miami earnings (less benefit of federal income tax deduction lost for state income tax).
Dime, I’ve always wondered how much post-season playoff $ is. Any way you can shed some light on that? Honestly, unless it is real good $, I’ve always wondered if there are some guys on borderline teams who would just as soon have an extra month or so of vacation, rather then fruitlessly playing more games.
March 2nd, 2011 at 9:55 am
Diallo says:
even if he cleared $50 million in salary thus far, the point of the article would still apply
but yes I agree with y’all – bad slip Dime
March 2nd, 2011 at 11:46 am
JAY says:
BTW, Bibby is expected to sign with Miami today…. expected to suit up versus Orlando. Wow.
March 2nd, 2011 at 4:16 pm
dlight says:
Fellows, I believe Bibby is rep’d by Mr. Falk and team, that’s who got him the ~$100m in the first place. Team Dime used that Arizona education, not to mention his Pops went through the league. Regardless of there “relationship” The name carries weight with old heads in suits. PS. Nothing to do with his coaching abilities.
I consider every player move south as a tax avoidance, cost of living consideration move.
March 3rd, 2011 at 4:29 am
Willis says:
People act like Mike is a scrub. He averaged pretty good numbers on those early-2000 Kings teams. He also put up over 20 points a game one season, and people were talking about him in the same way people talk about Chauncey Billups or Steve Nash now.