Welcome back, scholars and another new series, Managing Money. As someone who's a holder of a Master of Science in Finance from Vanderbilt Business School, this one right here will be a very fun series as money is my forté. Let's talk Zion Williamson from the New Orleans Pelicans:
Zion Williamson’s take-home balance after taxes can be quite complex due to various tax obligations, including federal, state, and local taxes, as well as the “jock tax” that applies to athletes.
For the 2024-2025 season, Zion Williamson’s base salary is approximately $36,725,670. Here’s a rough breakdown of his tax obligations:
- Federal Taxes: The highest federal tax rate is 37%. Additionally, there are Medicare and Social Security taxes.
- Louisiana State Taxes: Louisiana has a state income tax rate that ranges from 2% to 6%, with the highest rate applying to incomes over $50,000.
- Jock Taxes: These are taxes paid to states where games are played. The rate varies by state but is generally calculated based on the number of workdays spent in each state.
Assuming Zion is subject to the highest federal tax rate and the highest Louisiana state tax rate, his tax obligations might look something like this:
- Federal Taxes: 37% of $36,725,670 = $13,588,498
- Louisiana State Taxes: 6% of $36,725,670 = $2,203,540
- Jock Taxes: This varies, but let’s estimate an additional 3% = $1,101,770
- Total taxes: $13,588,498 + $2,203,540 + $1,101,770 = $16,893,808
Estimated take-home balance: $36,725,670 - $16,893,808 = $19,831,862
Now let's talk endorsements. He makes $15,000,000 a year in endorsements. That's around $34,831,862 annually. Let's start with the off-season.
- Finish College
Considering his fame and contribution to Duke, Duke more than likely would be free. He didn't declare a major, he should declare in engineering to expand his knowledge and intellect plus, it's never enough money. After that, finish up Pratt School of Engineering, that's a bonus in your skill set despite already being Zion.
- Health
Considering his injury prone history and being overweight. At 285, he needs to cut to 245. Keep the muscle, burn the fat but lean out. First things first, his diet. He needs to blend the Mediterranean, Japanese & Rastafarian Diet but building a diet of fruits, vegetables, herbs, red meat sparingly, seeds, soups and nuts. 1 cheat day a month. NO JUNK FOOD, NO RANCH DRESSING, NO STORE BOUGHT JUICES & NO FAST FOOD. He needs to prevent eating meat daily, never open your day eating meat and no meat in salads. Eat meat 3x-4x a week, can eat eggs 5x a week. Certain days you're going to need to go without animal products and a fast then fruit based for the rest of the day. That needs to be done 2 days a week maximum. After that, cut any vices. Women, junk food, smoking, drinking etc. Start incorporating vitamins and certain methods into it such as eating that apple a day, no pop/soda, juicing, tea, water, electrolyte fuel, ORS solution and occasional alcohol as in 2x a month maximum. Start the day off with 200 pushups, 100 pullups on the cable fly and 50 Russian Twists. Plan out juicing, breakfast, workout meal, lunch, dinner & dessert and dessert must be fruits only. Eat fat with D3 daily. Incorporate weekly IV and IM injections such as B3-Niacinamide, B12, Zinc, Biotin, B1, B2, Glutathione and GAC, this will help in cardiovascular health, liver health, energy, anti-inflammatory properties, skin health, muscle relief and recovery time. For the first 6 months, I recommend also taking Toradol once a month to kill inflammation even quicker but end after 6 months as it is a pharmaceutical. Lastly, vitamins, smoothies and teas also aid the way along with the liquid injections.
Monday:
- Cucumber, Beet and Carrot Smoothie
- Ginger, Cayenne, Lemon and Turmeric Tea
After Breakfast Supplements:
- Lion's Mane, Shiitake, ZMA, Licorice Root and Black Seed Oil
Tuesday:
- Blueberry, Goji and Date Smoothie
- Matcha Tea with 2500 mg of CBD
After Breakfast Supplements:
- Turkey Tail, Oil of Oregano, Inositol, Creatine Monohydrate and Milk Thistle
Wednesday:
- Liquid Chlorophyll, Mint, Soursop and Aloe Vera Smoothie
- Earl Grey Tea mixed with Elderberry Syrup
After Breakfast Supplements:
Ceylon Cinnamon, Mullein, Marshmallow Root, CoQ10 and Green Tea Extract
Thursday:
- Lemon, Lime, Grapefruit and Orange Smoothie
- Silver Needle Tea
After Breakfast Supplements:
BCAA, Beta Alanine, Gingko, Vitamin K12 & Calcium
Friday:
- Watermelon, Strawberry, Watercress, Kale & Kiwi Smoothie
- Peppermint Tea
After Breakfast Supplements:
ACV, Beet Root, Beef Liver, Mustard Seed, Fish Oil and Krill Oil.
Saturday:
- Plum & Cranberry Smoothie
- Hibiscus Tea and Kombucha
After Breakfast Supplements:
Pine Bark Extract, Damiana Leaf, Rhodiola Rosea, Ginseng and Marine Collagen
Sunday:
- Guava, Pineapple, Celery, Green Apple & Lychee Smoothie
- Moringa Tea
After Breakfast Supplements:
IV & IM treatments with Sea Buckthorn and Sea Moss
Typical foods for breakfast, workout meal, lunch and dinner:
- Açai Bowl
- Greek Omelette
- Tabboleuh Salad
- Greek Chickpea Salad
- Egg, Cheese, Mushroom and Onion Omelette
- Miso Soup
- Raisin and Walnut Oatmeal
- Scrambled Eggs
- Eggs & Greens
- Avocado Toast
- Overnight Oats with Fig and Honey
- Açai Bowl
- Caprese Salad
- Strawberry Smoothie Bowl
- Cod
- Croissants
- Pomegranate
- Basmati Rice
- Jasmine Rice
- Avocado Salad
- Grape Leaves
- Lamb Rib
- Mediterranean Quinoa Bowl
- Korean Vegan Buddha Bowl
- Ceviche
- Etoufee
- Steak Panini
- Steak Kabob
- Lamb Kabob
- Chicken Kabob
- Salmon Kabob
- Grape Leaves
- Porterhouse Steak
- Bison Filet
- Beef Tallow
- Beef Liver
- Extra Virgin Olive Oil
- Coconut Oil
- Avocado Oil
- New York Strip Steak
- Ribeye Steak
- Filet Mignon Steak
- Tomahawk Steak
- Swiss Chard
- Collard Greens
- Mustard Greens
- Turnip Greens
- Kale
- Spinach
- Cilantro
- Steak Alfredo
- Charcuterie Board
- Navy Beans
- Black Beans
- Kidney Beans
- Great Northern Beans
- Lima Beans
- Chicken Salad
- Beef Stir Fry
- Plantains
- Cottage Cheese with Pineapple and Cashews
- Poke Bowl
- Egg & Ramen
- California Roll Sushi
- Figs
- Brisket
- Chili
- Sweet Potato Fries
- Bean Burgers
- Cauliflower
- Couscous
- Pumpkin Stew
- Beef Stew
- Burrito Bowl
- Asparagus
- Greek Yogurt
- Bananas
Now that Zion has spent this money on his health. Let's say this adds up to $25,000 a year.
- Workout & Discipline
Every day should be a workout. Invest in Stem Cell Therapy, Cryogenics, Bikes, Icing, Cupping and Sauna along with intermittent fasting and prayer. 3x a day like yours truly. One for strength, one for athletic performance and one for agility, endurance and speed.
Early Morning:
- Legs daily, weights daily, calisthenics daily, resistance training daily and whole body 5x a week.
- 35 minutes to a hour
- A combined 120 reps minimum for all exercises.
- 1 5v5 game
Midday:
- 1 hour ball handling, post moves, defense drills, boxing out, running plays, pick and roll & off screen movements as a warmup
Rest and recover
- 50 layups, 100 post shots, 100 mid range and 75 3's need to be made to end shootaround per day.
Rest and recover
- 1 5v5 game and 1 1v1 game
Late Night:
- V02 training
- Run the 200m and 40 yard dash
- Simulate an entire NBA first quarter with a goal of scoring 15 points minimum in the first year
- 1 1v1 game
Also with Zion needing to be healthy, he needs to progress his game. He plays similar to Shawn Kemp, he needs to develop a LeBron shot tendency. Smart shots over highlight reel plays. He needs to spend the off-season watching film modeling LeBron James for longevity and consistency, Rondo for playmaking, Duncan for fundamentals, David Robinson for rebounding and agility, LaMarcus Aldridge for mid range abilities, Harden & Ginobili for left handed scoring and 3 point shooting as he's a lefty, Joe Johnson for iso scoring and Amar'e Stoudemire, Kawhi Leonard for perimeter defense, Steve Nash for free throw shooting, Jaren Jackson Jr. for interior defense, Jason Kidd shot IQ and Josh Smith for dunking to perfect his game. He needs to model after Curry for team chemistry, LeBron for grit and Harden for team consistency. Modeling after and contacting these players will benefit him and he needs to play at least 70 games a season and 40 minutes a night. That's a MVP and needs to bring it out to the team & even working out with other athletes like Alexander Ovechkin to build toughness, Walt Harris for strength and Evan Engram for speed.
This is about $75,000 a year.
- Franchising & Investments
$100,000 down. Let's say he starts off with 6 franchises with Ruth Chris, Express and Gold's Gym:
To calculate Zion Williamson's take-home income from his franchises, we need to consider the total revenue, operating expenses, and taxes. Here's a simplified breakdown:
Total Revenue
- Ruth's Chris Steak House: $5.76 million (2 franchises)
- Express: $2.46 million (2 franchises)
- Gold's Gym: $2.84 million (2 franchises)
- Total Revenue: $11.06 million
Operating Expenses:
Operating expenses can vary, but let's assume an average of 60% of total revenue for simplicity:
- Operating Expenses: $11.06 million * 60% = $6.636 million
Net Revenue:
- Net Revenue: $11.06 million - $6.636 million = $4.424 million
Taxes:
Louisiana has a flat state income tax rate of 3%. Additionally, we need to consider federal income tax. For high-income earners, the federal tax rate can be around 37%.
- State Income Tax: $4.424 million * 3% = $0.13272 million
- Federal Income Tax: $4.424 million * 37% = $1.63688 million
- Total Taxes: $0.13272 million + $1.63688 million = $1.7696 million
Take-Home Income
- Take-Home Income: $4.424 million - $1.7696 million = $2.6544 million
So, Zion Williamson would take home approximately $2.6544 million from his franchises after accounting for operating expenses and taxes in Louisiana.
Adding on, he buys more franchises and one of each with it being a Gold's Gym, 7-11, Smoothie King, Chick Fil A, McDonald's, Jackson Hewitt, Dunkin' & Taco Bell. That's a $16.11M investments + the earlier $100k. $18.6M left. After this, the total take home after tax is $6.5M.
$6.5M is the first non-potential on paper profit, that'll rise above it's purchase price in under 3 years.
Dividend investment is good when you want a guaranteed payout in a certain way.
Let's say he invests in MRNY which is a dividend stock that has a yield of 168.73% and pays monthly. He invests $10M into MRNY for a year, MRNY is based on Moderna so don't go all in consistently with this investment. However, for income purposes. From this dividend, he'll make $16,873,000 in dividends which is relative to $1,406,083.33 per month.
$16.8M is the second on paper profit and already a big profit. $8.6M left. Final market investment. He invests $3M into the S&P 500 & buys 5 Bitcoin at $93k. S&P has an average annual return of 10.13%. Bitcoin has an average annual return of 230%. That's $3M is now $3,303,900 million and that Bitcoin is $1,534,500. That's $3,465,000 as an expense, $4,838,400 as a return. $1,373,400 return. $5.1M left
- Zion the Brand
He's already famous, he's already a big deal. Let's say he not only trains part time in Vancouver but also films movies up there. 6 in a year. $550k per movie. $3,300,000 made.
He pauses the next year or uses acting as a stepping stone to romanticize his career the same way Kobe has and the same way LeBron, Jordan, Dame, AD, Ewing, Barkley and others have by participating in Space Jam. He can model what The Rock, John Cena and Conor McGregor have done, make their impact in their field but make their name marquee with or without their field. With his ultra fame and being in the most major cities multiple times a year, he goes NOT to YouTube but to Patreon as a power move. Makes Patreon a household name, displays everything about his life and makes the episodes airing twice a week and having a podcast $4 a month. Let's say he gets 1.1M followers that pay $4 a month to watch Zion which is ultra-realistic. He'd be making $52.8M a year and after fees & taxes, he makes $30.6M a year and with his ever growing fame, he hasn't hit his ceiling.
That's $30.6M made.
Next, he contacts companies (rather than seek his agent) and demands to give his rights to mimick Shaquille O'Neal and Snoop Dogg as an media mogul and media personality. He gets in video games like WWE2k, FIFA, GTA, Fortnite, UFC, Call of Duty and Madden NFL. $500K an appearance, 7 games? $3,500,000. 12 Smoothie King commercials considering that's the Pelicans commercial for $100k a commercial, $1.2M. $4,700,000 in totality.
That's $35.3M made between these 2.
- Legacy
He has been a victim of "baby mama drama". As a young man, that's a bad mistake. The next 4 things you need are to have your children with you, raised with her mother and to be wife immediately, a prenup & having control of that marriage. Now, open a variable universal life insurance policy. 10 years/$45M. $30,000 a month. $360,000 a year.
Trust Fund - $2,250
Prenuptial Agreement - $6,250
Private Security - $105 per hour * 24 hours * 365 days = $919,800
CPA - $35,000
Agent - $258,750
Private Trainer - $15,000
Private Doctor (Medical Concierge) - $9,000. $300 a hour, 30 visits
That's $1,246,050. $3.7M left
Credit is already built but we sparing with the credit & keep at minimum of 810.
For his family of 3, let's say he gets private medical, dental, home & car insurance, that's $50,000 doing business with Kaiser Permanente, Anthem, Erie & Westfield for insurance.
His legal team matters and as a lawyer, get an Ivy League lawyer or at minimum a lawyer from an Ivy League level school that's not an Ivy like Stanford, Chicago, Northwestern, Michigan, Duke, Tufts, Georgetown or Vanderbilt. That's $250,000, have the team preferably Black American so they know how to specialize in certain civil issues as they have experience and relatability in these fields.
He now spends $1,000 a week in food to provide for the New Orleans community and sends that food to a food pantry or a church, that's $52,000 a year.
He owns a $900,000 home in New Orleans that's on the market for $2M. His best bet is to put it up for sale, request a trade after this year and request a trade to the Knicks to live in America's marquee city, New York City.
Get a 3 bed, 3 bath condo in NoLita for $1,500,000 in a trendy, low crime part of New York City.
Gain attention by showing support and determination by coming in as a Knick, renting an Aston Martin Vantage for a week to pull up to the Westchester Knicks games and also participate on their practice teams to get in more reps with G League players and show support. Renting the Vantage for a week is $7,000 & donates $1,000 to elementary schools for supplies.
This racks up to $360,000. That's $3.3M left.
Lastly, he puts $200k to build an armory for home defense and $100k to his wardrobe. That's $3M left, he gets to have fun with that. However, if you add the money making advice. $6,500,000 + $16,873,000 + $4,838,400 + $3,300,000 + $30,600,000 + $4,700,000 = $66,811,400. That's take home! That's +$46,979,538 from the $19,831,862 we had left while mind you, out of the $19 million, $3M is left meaning we spent $16M and brought back practically 47 more million and with his increasing salary, the potential and strategy increases. This was a brilliant financial outlook by yours truly, this is Shabazz Farrakhan, JD, MSF, LLM and thank you for viewing!