How Many NBA Players Go Broke?

Many NBA players go broke after their playing days are over. In fact, a 2009 study found that 78% of former NBA players are either bankrupt or under financial stress within two years of retirement.

So how can you avoid becoming one of these statistics? By learning how to manage your money and make smart financial decisions.

In this blog post, we’ll take a look at how many NBA players go broke and what you can do to avoid the same fate.

NBA players and money

NBA players’ salaries

The average NBA player salary is $7.7 million per year, which is the highest of any major professional sport in the United States. However, not all NBA players are lucky enough to earn the league average salary. In fact, many players make far less than that.

In 2018, the minimum salary for an NBA player was $582,180. That means that there are plenty of players in the league who are making less than $1 million per year. And while it’s certainly not impossible to live comfortably on that salary, it’s also not easy.

So how do NBA players manage their money? Some of them do a great job and are able to save up enough to last them a lifetime. Others, however, struggle to make ends meet and often find themselves in financial trouble.

According to a study by The Center for Investigative Reporting, nearly 60% of former NBA players are either bankrupt or facing serious financial stress just 12 years after retirement. That number is shockingly high and indicates that many players are living beyond their means and not doing a good job of managing their money.

There are a number of factors that contribute to why so many NBA players go broke. For one, they’re often young when they start making a lot of money and don’t have experience managing such a large sum of cash. Additionally, they’re often surrounded by people who want a piece of their pie and who may not have their best interests at heart.

Players also have to deal with significant expenses like agent fees, taxes, and cost of living (especially if they play in a city with a high cost of living like New York or Los Angeles). And on top of all that, they also have to deal with the temptation to spend their money on luxury items like cars, clothes, jewelry, and vacations.

All of these factors can add up and make it difficult for NBA players to keep their finances in order. As a result, many of them find themselves in debt or even bankrupt soon after retirement.

NBA players’ endorsement deals

Many people assume that NBA players make a lot of money and that they are set for life. However, this is not always the case. In fact, many players go broke after they retire.

One reason for this is that NBA players often sign endorsement deals that are worth far less than their playing contracts. For example, LeBron James is currently signed to a $154 million contract with the Cleveland Cavaliers, but his endorsement deal with Nike is worth only $20 million. This means that LeBron will make far more money from his playing contract than from his endorsement deal.

Another reason why NBA players often go broke is because they have a hard time adjusting to life after basketball. For many players, basketball is all they have ever known. They have to learn how to live like normal people, which can be a challenge.

If you are an NBA player, it is important to be careful with your money. Make sure you are investing in things that will make you money after you retire from basketball.

How NBA players spend their money

Many NBA players go broke after their playing days are over because they have poor money management skills and do not know how to handle their money. They often spend their money on luxury items and do not invest in any long-term savings or investments. As a result, their post-career earning potential is limited and they find themselves struggling financially after their NBA career is over.

Buying expensive cars

NBA players are known for their flashy lifestyles and love of luxury cars. Many of them spend millions of dollars on Cars that they may never even drive. Some of the most popular brands among NBA players are Bentley, Rolls-Royce, Lamborghini, Ferrari, and Porsche.

While there’s nothing wrong with wanting to purchaseNice cars, many NBA players end up going broke because they fail to save their money and make wise investments. It’s not uncommon for NBA players to go through millions of dollars in just a few years after retiring from the league.

If you’re an NBA player, it’s important to be mindful of your spending and save as much money as possible so you don’t end up like many other players who have gone broke after their playing days were over.

Making risky investments

Many retired NBA players have lost millions of dollars by making risky investments. In fact, 60% of NBA players go broke within five years of retirement, according to a Sports Illustrated report.

There are a number of reasons why NBA players might make risky investments. For one, they may not have a good understanding of financial markets and investment instruments. They may also be influenced by friends or family members who are pitching them on a particular investment.

Another factor is that NBA players often have a lot of money to invest. They may receive large signing bonuses when they first enter the league, and over the course of their careers they may earn tens or even hundreds of millions of dollars in salary and endorsements. As a result, they may be more likely to take risks with their money.

Whatever the reason, it’s clear that many NBA players have lost substantial sums of money by making bad investments. In some cases, these losses have forced players into bankruptcy.

Living an extravagant lifestyle

Many NBA players go broke because they live an extravagant lifestyle and do not save their money. They are used to having a lot of money and they spend it without thinking about the future.

They buy expensive cars, houses, clothes and jewels. They go on expensive vacations and dine in the best restaurants. They party a lot and drink expensive champagne. They also give a lot of money to friends and family members.

NBA players earn a lot of money, but they also have a lot of expenses. They have to pay for their homes, cars, clothes, food, vacations and other things. Many of them also have to support their families and friends.

If they do not save their money, they will eventually run out of money and go broke.

The financial problems NBA players face

NBA players are some of the highest paid athletes in the world. But, despite their high incomes, many NBA players find themselves in financial trouble. In fact, it’s estimated that 60% of NBA players go broke within five years of retiring from the league. So, what causes these financial problems? Let’s take a look.

Poor money management

Many NBA players go broke because of poor money management. They make a lot of money, but they spend it recklessly on expensive cars, jewelry, and clothes. They also often give large sums of money to friends and family members who may not have their best interests at heart. As a result, many players find themselves in debt and without the means to support themselves after their playing days are over.

Players also face a number of other financial challenges. Their careers are short, and their earnings are often tied to their performance on the court. Injuries can force them into retirement before they’ve had a chance to save enough money. And once they retire, they often don’t have the skills or qualifications to get well-paying jobs. As a result, many former NBA players struggle to make ends meet and end up filing for bankruptcy.

Filing for bankruptcy

Filing for bankruptcy is often seen as a last resort, but for many NBA players, it’s simply a smart financial move. In fact, nearly 60% of former NBA players are either bankrupt or under severe financial stress just five years after retirement, according to a 2009 study by Sports Illustrated.

The main reason for this is simple: NBA players are paid an exorbitant amount of money for their services, but they don’t always have the proper financial foundation in place to sustain their wealth long-term.

Without a solid financial plan, it’s easy for NBA players to blow through their earnings and find themselves in dire straits when their playing days are over. By filing for bankruptcy, they can protect themselves from creditors and get a fresh start financially.

Of course, filing for bankruptcy is not without its drawbacks. It will stay on your credit report for seven to 10 years, making it difficult to get approved for loans and credit cards. And if you own any assets, such as a home or car, you could lose them in the bankruptcy process.

Still, for many NBA players who find themselves in financial trouble, filing for bankruptcy is the best way to get back on track financially and protect their future prospects.

Losing their NBA contracts

It’s no secret that many NBA players go broke after their playing career is over. In fact, a shocking 60% of former NBA players are broke within five years of retirement, according to a 2009 study by Sports Illustrated. While the exact reasons why so many players go broke are up for debate, there are some factors that likely contribute to the problem.

One reason why NBA players may go broke is that they fail to plan for their post-playing careers. Many players lack a formal education and have little experience handling large sums of money. As a result, they may not have the financial knowledge or skills necessary to manage their earnings properly.

Another factor that may contribute to financial problems for NBA players is the loss of their NBA contracts. Players who are released or traded often see their income drop dramatically, as they no longer receive the guaranteed salary and benefits that come with being on an NBA roster. This can be especially difficult for older players who are nearing the end of their playing careers and may not have time to adjust their spending habits.

Finally, many NBA players face significant medical bills due to injuries sustained during their playing days. With limited health insurance coverage and no player’s union to negotiate better terms, some players are left with little choice but to pay these costs out of pocket. This can add up quickly and put a serious strain on a player’s finances.

While it’s impossible to say exactly why so many NBA players go broke after retirement, these are some of the likely contributing factors. If you’re an aspiring professional basketball player, it’s important to be aware of these risks and take steps to protect your future earnings.

The solutions NBA players can use to avoid going broke

It’s no secret that many NBA players go broke within a few years of retirement. The reasons for this are numerous, but can be boiled down to a few key points. The first is that they’re used to earning a certain amount of money and living a certain lifestyle, and when that suddenly stops, they don’t know how to adjust. The second is that they often don’t have a good handle on their finances and don’t save enough money. The third is that they often make bad investments. There are solutions to these problems, though, and if more NBA players used them, they wouldn’t have to worry about going broke.

Hiring a financial advisor

When it comes to money, athletes are often their own worst enemy. They make too much too fast and have no idea how to handle it. NBA players are no different. In fact, 60% of NBA players are either bankrupt or in financial stress within five years of retirement, according to a 2009 Sports Illustrated article.

One of the primary reasons so many NBA players go broke is because they fail to plan for their post-playing careers. They live for the moment and fail to think about the future. This is where a financial advisor can help.

A financial advisor can help an NBA player plan for his post-playing career by creating a budget, investing in long-term growth opportunities and setting up a retirement plan. By doing this, anNBA player can avoid going broke after he retires from playing basketball.

Investing in a solid business

While some players choose to invest in less than solid business ventures, others make sound investments that set them up for long-term success. For example, Shaquille O’Neal has had great success with his involvement in the restaurant industry. He is a shareholder of 155 Five Guys franchises and has partnerships with Papa John’s, Auntie Annie’s, and car washes. He also has his own line of water and soda. Similarly, Kobe Bryant invested $6 million in sports drink BodyArmor in 2014; when Coca-Cola bought a minority stake in the company for $200 million 2018, Bryant’s investment was worth 10 times its original value.

Unfortunately, not all players are as savvy with their money as Shaq and Kobe. In fact, many players go broke within a few years of leaving the NBA. This is often due to bad investments, extravagant spending, or financial mismanagement. While it is impossible to say exactly how many players go broke after their NBA careers end, it is clear that the number is far too high.

There are a few things that players can do to avoid going broke after their NBA careers end. One obvious solution is to be more mindful of their spending. Another is to be more selective with their investments. Players should also make sure to have a solid financial plan in place before they retire from the NBA. By taking these steps, players can increase their chances of remaining financially stable after their playing days are over.

Creating a budget

Creating and following a budget is one of the most important things a person can do to prevent going broke. Dave Ramsey, a popular financial author and radio host, recommends the 50/30/20 budget plan for people who want to get their finances under control. Under this plan, 50% of your income goes towards essentials like housing, food, and utilities, 30% goes towards debt payments and discretionary spending, and 20% goes into savings. This is a good starting point for people who are trying to get their spending under control.

Players should also create a budget for their basketball-related expenses. This can help them keep track of how much they’re spending on things like travel, gear, and training. Players should work with their financial advisors to create a budget that makes sense for their income and lifestyle.