Lamar Jackson gets $1.5 billion advice from Business Mogul Grant Cardone to become NFL's next billionaire
While Lamar Jackson didn’t get the fully-guaranteed contract he sought, he still got paid well. That said, world-renowned entrepreneur, speaker, and investor Grant Cardone has a suggestion on how Jackson can turn his money into a billion dollars.
The self-represented quarterback agreed to a five-year, $260 million contract extension with the Baltimore Ravens. He earned $135 million in guaranteed money upon signing. That number increases to $185 million throughout the contract’s duration, or at the rate of $37 million annually.
The author of eight business books and 13 business programs explained how Jackson could grow his money while minimizing taxes.
"If he took the 37 million and rather than spending any of the earned income, I would suggest Lamar Jackson take the entire 37 million over five years, invest the entire 185 (million) into a real asset, real estate, income-producing real estate that would then buy him times four."
"He could buy four times the real estate, that would be three-quarters of a billion dollars worth of real estate ($750 million). You would not spend any money on houses, no money on watches, no money on Lambos, or Rolls-Royces. You wouldn't give any money away.”
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Cardone added that Jackson could live off the passive income from those assets.
"This would probably throw off probably 10 million a year that you live off of. Six percent of a $185 million that's invested in an asset would pay you $10 million a year in passive income, check this out, that would be taxed at almost zero."
But the crash course from the Cardone Capital founder didn’t stop there. Cardone estimated that $750 million in real estate assets could be worth over a billion dollars once the contract ends. That portfolio should allow him to live comfortably and avoid bankruptcy.
Lamar Jackson finally got the contract he deserves
The former Louisville standout was eligible for a contract extension after the 2020 season. It should have been a no-brainer for the Ravens because Lamar Jackson was the Most Valuable Player of the 2019 season.
But after his rookie contract and the fifth-year option expired, both sides were nowhere near a deal. Jackson wanted a guaranteed deal like Deshaun Watson got from the Cleveland Browns. However, the Ravens would budge, and a stand-off ensued, mainly when his team explored the option of tagging him for a second year.
The rift got worse when Jackson revealed his trade request from the Ravens. Ironically, other teams never even explored a phone call with Baltimore general manager Eric DeCosta.
Both sides finally closed the contentious saga after Jackson agreed to a new contract during Day 1 of the 2023 NFL Draft. Aside from getting his money, he will get to facilitate an improved offense with Zay Flowers and Odell Beckham Jr.