RealGM

The numbers are baffling as to how many former players go bankrupt, my question is how? I realize bad investments and lack of education can be an issue but does these guys not hire accountants and financial advisors?

Some because bad investments and some just live above their means. Some because they spend like they think they are going to make that much every year until they die not realizing that when they are done playing basketball, they still have about half of their life to live still.

Just like a large number of people who become millionaires by winning the lottery are broke after 5 years (90% or something crazy like that). For an example, most people do realize that there is a lot more to buying a 5 million dollar home with cash and thinking your house is paid off and you are set. Property taxes and maintenance alone can easily be 6 figures a year, every year. Expensive cars have astronomical insurance rates and that is if you are a good driver with no tickets or accidents. Point being there is a lot of hidden costs to living the 'good' life and they add up quick.

I'm sure they do hire acct/fa's but those guys can only help grow their money so much, IMO these said players spend money like they still in the league and earning big bucks when they should be living on a set budget.

They've got a lot of friends and family that want "in" on the success. Players oblige because of those relationships and think that they can sustain it.

Players will also blow money on expensive cars and a baller lifestyle. I've known ARMY Soldiers that did the same with the bonus pay they get so its not just pro-athletes that have this problem.

The advisers that they do hire can give bad advice especially when it comes to investing money.

Many professional athletes are educationally ill-equipped to manage millions of dollars, and are often targets for leeches. They don't have control over their spending. The NBA offers financial orientation programs to young players entering the league, but I think many rely on their acquaintances for financial advice, and a lot of the people in their lives probably have their hands out.

Patrick Ewing said, "Sure .. we make a lot of money, but we spend a lot of money too." After hearing about how he spent over $10,000 at a strip club, I don't have much sympathy for players who go broke.

it's truly a sad affair to see some of the individuals that are so gifted lack common sense. i blame a lot of it on their social economic upbringing. when you get a kid that has come from nothing his entire life, and then is handled millions; at what point in his life was he taught how to embrace substantial amounts of currency?

when they keep their friends and family laced in the finest, among other bad financial decisions, financial stability pretty much goes out the window. it is truly mind boggling to see the numbers of players that pretty much have nothing to show for after basketball is over.

They seem to be divided up into three types:

- Guys who have bad luck for some reason or another and have put too much of their savings into certain businesses they're funding, or had recent market troubles wipe out a lot of their investments.

- Players ripped off by their managers, accountants or assistants. These guys are in a somewhat better position as they can often sue to get their money back once they've found out they're being deceived.

- The crazies: these guys are either addicted to gambling, have 5 mansions, or simply buy anything and everything that they catches their eye, including a diamond-encrusted Bentley and a solid gold toilet.

Sports Illustrated did a huge article on this a few years back. Want to say the biggest reasons were divorce and/or illigitimate children and bad business decisions.

a few years ago Demarr Johnson went out and bought a $100,000 jacket made out of some rare fur that he wore all over Denver, he was making the league minimum at the time. Marcus Camby bought 8 brand new cars and had them all customized when he resigned in Denver a few years ago. Carmelo bought a nice new car and paid for one of his boys to go to school in Colorado after being drafted. Latrell Sprewell bought a yacht while he was having trouble feeding his family. charles Barkley spent millions gambling. These are just a select few off the top of my head, but when that is the prevalent culture and actions of the players, why is anybody surprised that more then half are broke within 5 years.

Sedale Threatt wrote:Sports Illustrated did a huge article on this a few years back. Want to say the biggest reasons were divorce and/or illigitimate children and bad business decisions.

Yep.

Lots of these guys come from a family that's never had money and doesn't know how to keep it. If you don't take care of your money, it doesn't matter how much you started with, you'll eventually have none.

It's a combination of things, most notably children, marriages, poor spending habits and lack of business acumen. To be honest, if you give a ton of money up front to people who don't have a sense of a dollar, they'll likely blow it too. This isn't a NBA problem as much as it's an athlete problem.

Gambling, family members who need money, and wanting to match their peers' spending levels

The Sports Illustrated article...

http://sportsillustrated.cnn.com/vault/ ... MAG1153364

Their reasons:

1. Bad business decisions
2. Poor financial advisement
3. Divorce
4. Leaches

Those players would still be broke if they got 90% of BRI... the cause is from being a dumbass.

a mix of not being smart with money and an expensive lifestyle on the road.

they make all there money during a 10 year span, but spend like they will have paydays for life.

This is a big misconception harbored by people who have never made any money.

Filing bankruptcy does not equate to being broke for millionaires.

Sedale Threatt wrote:1. Bad business decisions
2. Poor financial advisement
3. Divorce
4. Leeches

I feel no sympathy because these reasons are all based on their decisions as adults.

This number is going to go to at least 50% if the proposed CBA passes, with the players getting oh so screwed and all!!!

Who will cry with me for the plight of the poor player?!?!

There is a very simple short answer here...

They're no smarter than the general population, and very likely not even as smart as a whole. Give millions of dollars a year to the regular Joes and you'll find a lot of broke mofos in general society as well.

Having a lot of money doesn't mean you know how to use it wisely.