It’s shocking when NBA players with multi-million dollar contracts end up broke.
However, it’s an all too common story. Reckless spending, bad investments, costly divorces, and other issues have left many former NBA stars bankrupt.
5 NBA Players Who Went Broke
1. Allen Iverson
Allen Iverson, an important cultural persona, earned over $200 million in salary and endorsements during his illustrious career.
The 11-time All-Star had a reckless and lavish lifestyle with a 50-person entourage. He spent excessively on jewelry, houses, and cars. He took out high-interest loans using future earnings as collateral.
By 2010, Iverson was struggling to pay a $900,000 jewelry debt which led him to declare bankruptcy. All his bank accounts were frozen.
A trust fund is all that kept him from total financial ruin.
2. Antoine Walker
Despite making $108 million in his career, Antoine Walker lost everything due to extravagant spending and a gambling addiction. He owned mansions, exotic cars, and expensive jewelry, and had 10 bank accounts with $4 million total.
When the banks noticed sizable withdrawals and unpaid casino debts, they cut Walker off.
By 2008, he couldn’t afford his mortgage payments causing him to lose his $12.7 million Chicago mansion.
3. Dennis Rodman
Dennis Rodman, famous for things like wearing the number 69, earned a relatively modest $27 million in the NBA but lost everything to hard partying. For decades, he spent freely on booze, wild nights out, and trips to Las Vegas.
By 2012, Rodman owed $800,000 in child support and faced jail time.
He’s been able to avoid total bankruptcy thanks to money from celebrity appearances, endorsements, and book sales.
4. Vin Baker
Vin Baker earned over $100 million playing for several teams, but alcoholism led him to lose everything. Doctors believed he was consuming up to a liter of vodka a day during his career.
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His addiction caused his skills to erode quickly. In 2014 with just $5 million left to his name, Baker was managing a Starbucks.
He’s rebounded and now works for the Bucks as an adviser.
5. Shawn Kemp
Shawn Kemp fathered 7 children with 6 women and developed a drug addiction after retirement. This left him struggling to afford the child support payments which exceeded $40,000 per month.
He tried many business ventures to generate income including a nightclub and a marijuana dispensary bearing his name. But nothing succeeded long. His net worth sits at just $5 million today.
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Why NBA Players Go Broke
There are several reasons why NBA players lose their fortunes:
- Reckless spending – Lavish houses, cars, jewelry, parties, and an entourage add up quickly.
- Bad investments – Investing in nightclubs, record labels, and other businesses with high failure rates.
- Costly divorces – Multi-million dollar divorce settlements have ruined players.
- Child support – Having multiple children with multiple women leads to high child support.
- Financial mismanagement – Not hiring accountants and financial advisors to manage their money.
- Post-career struggles – Income dropping drastically after retirement with the same lifestyle.
Steps The NBA Is Taking To Help
In addition to financial planning assistance, leagues are also changing rules to help players both during and after their careers:
- Increasing minimum player salaries – This guarantees a higher income for all contracted players.
- Lowering early entry age – Players can start earning sooner if they declare early for the draft.
- Providing free tuition – Those without a degree can go back to school tuition-free.
- Mandatory injury insurance – Protects contracts if a player gets injured.
- Improving healthcare – Includes physical, mental health, and addiction services.
- Increasing pensions – Retirement plan contributions are rising steadily.
- Job placement programs – Helps players transition to second careers after basketball with internships and career counseling.
As salaries and career lengths increase, leagues hope to see fewer instances of financial trouble for former professional athletes.
Sources:
clutchpoints.com/the-richest-nba-players-who-went-broke
www.marca.com/en/basketball/nba/2022/12/19/63a071f4e2704e58208b4577.html
www.sportskeeda.com/basketball/5-nba-players-went-broke-exiting-league
