Luol Deng:The NBA’s Unlikely Real Estate Mogul (Forbes)

[J4Kop99]

I apologize if this has posted elsewhere. I found this fascinating. I have always admired Luol so this was great to read about.

He has amassed a $125M Real Estate Portfolio in addition to the $150M+ he has made in the NBA.

Here is an excerpt:


Luol Deng has spent 15 years in the NBA and has always put up solid numbers, averaging nearly 15 points per contest over 900-plus games. The 34-year-old forward, who played for the Minnesota Timberwolves this past season, has never been the headliner on any of the five teams he’s played for, but he does have a pair of All-Star Game selections on his résumé. It is the kind of long career that is quite lucrative in today’s NBA, where the salary cap exploded thanks to the tripling of the most recent TV contract with ESPN and TNT. The result—Deng’s career earnings on the court are $151 million.

But the Sudanese-born Deng is not waiting for the end of his playing days for his next big score. He’s been investing in real estate almost since the time he entered the league in 2004 and has amassed an impressive portfolio—hotels, resorts, condos and apartment buildings—worth $125 million.

https://www.forbes.com/sites/kurtbadenhausen/2019/06/21/the-nbas-unlikeliest-real-estate-mogul-luol-dengs-125-million-portfolio-is-a-new-playbook-for-monetizing-fame/#521248701db9

[J4Kop99]

Another good excerpt:


Deng says he has leaned on mentors like real estate entrepreneur Don Peebles and JPMorgan Chase CEO Jamie Dimon. He was good friends with Dimon’s daughter at Duke, and the banking titan was based in Chicago as CEO of Bank One and welcomed Deng to the city when he was drafted by the Bulls.

[sagegrouse]

I apologize if this has posted elsewhere. I found this fascinating. I have always admired Luol so this was great to read about.

He has amassed a $125M Real Estate Portfolio in addition to the $150M+ he has made in the NBA.

Here is an excerpt:



https://www.forbes.com/sites/kurtbadenhausen/2019/06/21/the-nbas-unlikeliest-real-estate-mogul-luol-dengs-125-million-portfolio-is-a-new-playbook-for-monetizing-fame/#521248701db9

Here's one interesting passage:

Deng says he has leaned on mentors like real estate entrepreneur Don Peebles and JPMorgan Chase CEO Jamie Dimon. He was good friends with Dimon’s daughter at Duke, and the banking titan was based in Chicago as CEO of Bank One and welcomed Deng to the city when he was drafted by the Bulls.

[budwom]

yeah, but other guys have much larger entourages!

[CrazyNotCrazie]

I apologize if this has posted elsewhere. I found this fascinating. I have always admired Luol so this was great to read about.

He has amassed a $125M Real Estate Portfolio in addition to the $150M+ he has made in the NBA.

Here is an excerpt:



https://www.forbes.com/sites/kurtbadenhausen/2019/06/21/the-nbas-unlikeliest-real-estate-mogul-luol-dengs-125-million-portfolio-is-a-new-playbook-for-monetizing-fame/#521248701db9

Very interesting article and I am very happy for Luol and his success. But to clarify, it does not say he has $125 million of real estate in addition to his NBA earnings.

[golfinesquire]

Very interesting article and I am very happy for Luol and his success. But to clarify, it does not say he has $125 million of real estate in addition to his NBA earnings.
Well, the article says his career earnings on the court are $150 million and his real estate portfolio is $125 million. Does sound like that means "in addition to."

[Indoor66]

Well, the article says his career earnings on the court are $150 million and his real estate portfolio is $125 million. Does sound like that means "in addition to."

Don't you think the $125 million is the result from investing some of his $150 million? We should not confuse gross and net. In any event I would bet he has a net worth well north of $225 million.

[El_Diablo]

Well, the article says his career earnings on the court are $150 million and his real estate portfolio is $125 million. Does sound like that means "in addition to."

No, because those two things overlap (perhaps significantly).

[Edouble]

No, because those two things overlap (perhaps significantly).

Agree... some of the $150 million was certainly used as capital for his real estate investments when he got started.

[golfinesquire]

Agree... some of the $150 million was certainly used as capital for his real estate investments when he got started.

All that means is that he does not have $150 million in the bank. It does not mean he did not EARN that on the court, which is what the article says.

[BD80]

All that means is that he does not have $150 million in the bank. It does not mean he did not EARN that on the court, which is what the article says.

He could have invested all $150 mil to "develop" his $125 mil real estate portfolio. Sounds like something I would do, on a different scale.

Amusing that NBA teams paid him to investigate the real estate markets in Chicago, Cleveland, Miami, LA and Minneapolis. Also enabled him to regularly visit 23 other cities "on business" over a 15 year period.

[sagegrouse]

Well, the article says his career earnings on the court are $150 million and his real estate portfolio is $125 million. Does sound like that means "in addition to."

Yes, but apples and oranges. Earnings are a "flow" that go to taxes, living expenses, and savings. "Savings" are invested, such as his real estate portfolio of $150 million (a "stock") -- but real estate is usually leveraged with debt, so I don't know if $150 million is a value with or without debt.

Also, Deng would certainly have earnings beyond his NBA salary, such as through endorsements, and he would have investments outside of real estate.

Sounds like the young man is doing well.

[Billy Dat]

Maybe when Danny Ferry said that Luol had a lot of African in him, he was comparing him to Sudhir Ruparelia or Samih Sawiris.

http://innov8tiv.com/the-richest-real-estate-tycoons-in-africa/

[Reilly]

... Earnings are a "flow" that go to taxes, living expenses, and savings ...

These "earnings" things sound wonderful -- where does one get them? And what's the word for the money I get periodically for my labor, which seems to only go two places (taxes, living expenses).


Maybe when Danny Ferry said that Luol had a lot of African in him, he was comparing him to Sudhir Ruparelia or Samih Sawiris.

http://innov8tiv.com/the-richest-real-estate-tycoons-in-africa/

Only if Danny was reading from the scouting report of a Bloomberg analyst.

[luvdahops]

Yes, but apples and oranges. Earnings are a "flow" that go to taxes, living expenses, and savings. "Savings" are invested, such as his real estate portfolio of $150 million (a "stock") -- but real estate is usually leveraged with debt, so I don't know if $150 million is a value with or without debt.

Also, Deng would certainly have earnings beyond his NBA salary, such as through endorsements, and he would have investments outside of real estate.

Sounds like the young man is doing well.

To put it a different way, the fact that his portfolio of real estate assets is worth an estimated $125 million does not necessarily mean that his equity in those assets is worth $125 million. As you note, given leverage frequently used in real estate, it is probably safe to assume that the equity value is significantly less (maybe only 30-40% of the asset value, depending on the specific type of properties owned).

[Bluedog]

Wow, only on DBR does this type of wordsmithing and analysis occur. ;) I love it incidentally. On another note, it was well known on campus that Luol and Dimon were more than friends. So, he definitely got to know her father especially when he made it to the NBA I'm sure. Glad he's doing well for himself. Luol gives a lot back to Sudan.

"From the window [point to backboard], to Luol!"

[johnb]

$150m in career earnings translates into maybe $80m take home after taxes and agent.

Leverage in a rising market works well, but the world is full of tempting places to spend money.

I’m assuming the article is asserting that luol currently has direct control of real estate that would lead to a personal profit of $125m pretax if liquidated over the next year.

[sagegrouse]

$150m in career earnings translates into maybe $80m take home after taxes and agent.

Leverage in a rising market works well, but the world is full of tempting places to spend money.

I’m assuming the article is asserting that luol currently has direct control of real estate that would lead to a personal profit of $125m pretax if liquidated over the next year.

My financial concerns about Luol were his obligations to his immense refugee family (eight brothers and sisters), which left Sudan for Egypt and then later went to Britain. Obviously, he is doing well for himself, and my concerns were misplaced.

[camion]

For me the the $150M and $125M numbers are just to grab attention and don't aren't directly translatable to what he received in salary and what is current value is now. They do indicate to me that he has been prudent with his earnings and hasn't spent lavishly and foolishly. That makes sense to me because I never saw him as someone who was primarily interested in lauding self.

[Tazman10]

Well, the article says his career earnings on the court are $150 million and his real estate portfolio is $125 million. Does sound like that means "in addition to."

This is Economics 101, from what money you earn you can purchase things, like real estate. You cannot buy real estate on good looks or for years playing in the NBA. And smart economics is that you purchase something that gains in value beyond what you purchased the item for. Good real estate tends to be worth more than what you purchased it for.

[johnb]

My financial concerns about Luol were his obligations to his immense refugee family (eight brothers and sisters), which left Sudan for Egypt and then later went to Britain. Obviously, he is doing well for himself, and my concerns were misplaced.

This touches on how Luol might be better termed one of the More likely NBA real estate moguls. While almost everyone wants to make NBA money, few rising NBA players have his experiences as an immigrant from a place like Sudan. He knows that things can go sideways. He always struck me as smart and grounded, and while I was aware that he went pro early to help his family, I was as confident of his long-term overall success as I’ve been with any of our guys (given that I know very little that I don’t read here).

I remember what Grant Hill used to tell guys: “if it’s on your back, it’s not in the bank.” I don’t think Luol needed anyone to tell him that.

[brevity]

I remember what Grant Hill used to tell guys: “if it’s on your back, it’s not in the bank.” I don’t think Luol needed anyone to tell him that.

“But what if the bank is on your back?”
— Antoine Walker

[Jeffrey]

This is Economics 101, from what money you earn you can purchase things, like real estate.

Good real estate tends to be worth more than what you purchased it for.

This is Intro. to the Great Recession 101.

[MartyClark]

I don't feel like I ever got much insight into Luol during his brief Duke tenure or NBA career. He seemed like a private and low maintenance guy.

It sounds like he is doing well, good for him.