How We Scored a $400K Tax-Saving Slam Dunk for an NBA Rising Star
A first-round NBA draft pick faced a complex tax landscape, competing financial advice, and a life-changing contract. We built a proactive tax and wealth strategy designed to help protect his earnings today and support his financial future.
A Dream Contract. A Whole New Financial Game.
Signing an NBA contract is a career-defining achievement. But when substantial earnings arrive before a player has experience managing wealth, financial decisions can become as challenging as the competition on the court.
Our client, a first-round draft pick for the Orlando Magic, was entering a new financial chapter. As a Florida resident, he benefited from having no individual state income tax at home. However, games, practices, and other professional activities in states with income taxes introduced a far more complicated picture.
He wanted to keep more of what he earned, make smarter investment decisions, and establish a foundation for lasting financial security. What he needed was not another isolated opinion, but a coordinated strategy.
A Full-Court Press from the Tax Man
A multi-million-dollar contract can create opportunity, but without the right planning, tax exposure and uncoordinated financial decisions can erode the value of that income.
The “Jock Tax” Blindside
Income earned through professional duties in other states may be taxable in those jurisdictions. Without reliable duty-day records and accurate state-by-state allocation, the client risked errors, missed credits, overpayment, and compliance issues.
Inefficient Investment Decisions
Investments held without a coordinated tax plan can create avoidable complexity and unfavorable tax outcomes. His growing portfolio needed a structure aligned with his investment goals, income, and risk profile.
No Unified Wealth Plan
His new wealth needed a more deliberate framework for business risks, asset protection, charitable giving, and long-term growth. Conflicting advice made it harder to see how each financial decision fit together.
A Teammate’s Warning Changed the Game Plan
During a road trip, a veteran teammate shared how poor financial advice early in his career had led to an unexpected tax bill and a stressful tax audit. The conversation made one thing clear: waiting until a tax problem appears can be an expensive way to learn.
The athlete’s agent connected him with Orivon Advisory Group to explore a more specialized approach—one that coordinated tax compliance, investment structures, and charitable planning around the realities of a professional sports career.
Building a Financial Game Plan Beyond the Court
Orivon approached the engagement as a coordinated financial strategy—connecting tax reporting, business structuring, and charitable goals rather than treating each decision in isolation.
Jock Tax Management
We established a process for tracking professional duty days across jurisdictions, including applicable games, practices, and promotional activities. Those records supported state-by-state income allocation, tax-return coordination, and the evaluation of available credits and deductions.
Tax-Efficient Structuring
We evaluated and established LLC structures for appropriate investments and business ventures. The objective was to separate eligible business activities, support organized financial management, and assess potential liability protection and tax treatment with the right legal and tax professionals.
Strategic Charitable Giving
We incorporated a donor-advised fund into the broader planning discussion. Subject to eligibility and applicable rules, this approach can allow a qualifying contribution in a high-income year while giving the donor flexibility to recommend charitable grants over time.
From High Earner to More Strategic Investor
The coordinated plan was designed to deliver near-term tax efficiency while giving the client a stronger framework for managing growing income, investments, and professional opportunities.
Reported First-Year Tax Savings
Through the reported combination of multi-state tax management and strategic deductions, the engagement delivered more than $400,000 in first-year federal and state income tax savings, according to the case-study figures provided.
A Framework for Wealth Preservation
Appropriate LLC arrangements created a more organized framework for eligible investments and business activities, with liability protection and tax treatment dependent on the specific entities, activities, and applicable law.
One Coordinated Financial Direction
A unified strategy helped connect tax obligations, investment decisions, and charitable objectives, reducing the burden of managing disconnected advice while supporting more informed financial decisions.
Planning for New Opportunities
As the client pursued additional commercial opportunities, including an endorsement deal, the broader framework provided a starting point for evaluating business arrangements and their after-tax implications before decisions were finalized.
Client: A first-round draft pick for the Orlando Magic, navigating his first multi-million dollar contract.
Service Area: Tax Strategy & Compliance
Challenge: The client faced a complex, multi-state tax landscape (“Jock Tax”), lacked a strategy for wealth preservation, and was receiving conflicting financial advice. His primary goal was to minimize his tax burden and build a foundation for long-term financial security.
Solution: We developed a holistic financial and tax plan that proactively managed his unique multi-state tax obligations, structured his investments for tax efficiency, and implemented charitable giving strategies to create significant deductions, allowing him to focus on his performance on the court.
Introduction
Signing your first NBA contract is a dream come true, but the financial reality can be a nightmare. Our client, a phenomenal talent, suddenly found himself with significant income but no experience managing it. As a Florida resident, he enjoyed no state income tax at home, but nearly half his games were played in states with high income taxes, like California and New York. He wanted to be smart with his money but was overwhelmed by the complexity.
The Problem: A Full-Court Press from the Tax Man
Without a professional game plan, our client was facing several financial fouls:
- The “Jock Tax” Blindside: He was unaware that every dollar earned while playing in another state was subject to that state’s income tax. Without meticulous tracking, he was at risk of overpaying in some states and underpaying in others, inviting audits.
- Inefficient Investments: He had begun making investments in his personal name, meaning all dividends and capital gains would be taxed at the highest possible rates.
- No Asset Protection: His new wealth was unstructured, leaving his assets exposed and with no cohesive plan for long-term growth or protection.
The Catalyst for Change: A Teammate’s Cautionary Tale
During a road trip, a veteran teammate shared a horror story of his own rookie year, where poor advice led to a massive, unexpected tax bill and a stressful IRS audit. He urged our client to get specialized, professional help immediately. Realizing he didn’t know what he didn’t know, our client’s agent connected him with us, seeking a team experienced with the unique needs of professional athletes.
Our Strategic Solution
We acted as his personal CFO, creating a game plan to protect and grow his wealth.
- “Jock Tax” Minimization: We implemented a system to meticulously track his “duty days”—days spent in each city for games, practices, and promotional events. This allowed us to accurately apportion his income and take every available credit and deduction to ensure he paid the legal minimum in each state, and not a penny more.
- Tax-Efficient Structuring: We established a series of LLCs to hold his investments and business ventures. This provided crucial liability protection and allowed for more flexible and tax-efficient management of his growing portfolio.
- Strategic Charitable Giving: We worked with him to establish a donor-advised fund, allowing him to make a significant charitable contribution in a high-income year to generate a large tax deduction, while deciding on the specific charities to support over time.
The Transformation: From High Earner to Smart Investor
Our comprehensive strategy provided immediate and long-lasting benefits.
- First-Year Tax Savings: Through our meticulous jock tax management and strategic deductions, we saved him over $400,000 in federal and state income taxes in the first year alone.
- Long-Term Wealth Preservation: The LLC structure protected his personal assets from business risks and set the stage for generational wealth transfer.
- Peace of Mind: With a professional team managing the financial complexities, he was able to completely focus his energy on his career. He has since signed a major endorsement deal, which we structured through his LLC to maximize his after-tax earnings.