: MediaTakeOut.com has learned that, according to a new report by the NBA's Player's Association, 60% of NBA players will be broke within 5 yers of retirement. Here's the story as reported on the popular blog
“Sixty percent is a ballpark. But we’ve seen a lot of guys who’ve really come into hard times five years after they leave the league,” said Roy Hinson, the former NBA forward who’s a representative for the players’ association. “The problems are, for a lot of guys, they have a lot of cars, they have multiple homes, and they’re taking care of their parents. They’re taking care of a whole host of issues. And the checks aren’t coming in anymore.”
“Sometimes you can stop the bleeding, and other times you can’t stop the bleeding,” said Hinson, who added that many players associate with “too many ‘yes’ people.”
We’ve all heard the stories of NBA players owning 15 cars and 5 vacation homes. The sad part is most of these players lack educations and support outside of their posses and families. Most of these players could use some legal guidance as well as financial guidance but seem at times to not be so willing. The players’ association has continually proposed a financial firm that offers players free 2nd opinions on their financials, but getting these players to act has been a challenge.
Back in October, Jason Caffey, who made an estimated $29 million during his eight-year NBA career, was in bankruptcy court seeking protection from his creditors, among them the seven women with whom he fathered eight children.
Shaquille O’Neal of the Miami Heat was in the news recently with a court document representing his annual income as well as his annual and monthly spending. The “Diesel” pays $156,000 a month just in rent and mortgages on the various properties he owns or leases and another $1500 just for his cable TV bills! Of course Shaq is on another level than most other NBA players with the simple fact that he pulls in $20 million a year in salary but this still shows you a great example of the kind of money players are capable of spending.
Remember former Chicago Bull, 6 time NBA Champion, Michael Jordan running mate and top 50 player of all-time Scottie Pippen? Just 2 years removed from retirement, Pippen was back in the news looking to make an NBA comeback to a team that was a title contender. NBA teams laughed at a Pippen return which was later rumored to be based on his poor financial standing. The rise and fall of Pippen was so drastic that he was seen overseas playing 2 games for Finnish powerhouse, Helsinki ToPo to make a little cash.
Besides the fact that players fork out all of this dough for houses, cars and cable bills you still can’t forget that many of them have multiple children from multiple women. This is yet another expense that must be accounted for and child support is one of those bills that doesn’t go away for at least 18 years. Again, you can see how 5 years removed from an NBA career with 2-3 child support payments a month and you could run out of millions pretty damn fast.
Jason Kapono of the Toronto Raptors expressed his thoughts after the players’ association presented their materials. “Going above and beyond isn’t worth it. I don’t want to be a part of that 60% that’s in trouble five years down the road. It’s a short career and I’m blessed to be earning a great salary playing basketball. But if it ended, my contract only takes me to age 30. Life expectancy is 80-plus. So I’ve got another 50 years. Do I really need to buy another car?”
i blame their parents for not teaching them how to invest their money wisely. that is a job of a parent. imagine that happening to a jewish or asian player. they rear their children to be financially savvy
That's why boys shouldn't be drafted right out of high school. For the older guys the league needs to provide some business training.
You see some of these cats with a fleet of cars, mansions, several babies and women,.....You have to keep that kind of money coming in after retirement.
Scottie Pippen is trying to get back in the game after having bad business people.
Here you see the fallout from the so called MTV Cribs epidemic. You have a bunch of young black athletes who come up on alot of money and they buy lots of cars and jewelry and homes. I've been told that if something is on your ãss, its not an asset. If you play in the U.S. you have to worry about paying 35% federal taxes, at least 4% to agents, state taxes which can range from 0% in Florida to almost 10% in California. So thats essentially half their pay going towards taxes right off.
Imagine a baller spending frivolously for many years and see what kind of trouble they get into when their career is over and they've become accustomed to a lifestyle. Many of these athletes don't understand that they will only make that kind of money for 15 to 20 years maximum if they are any good and that short time of phat paychecks has to sustain them once they retire, which most do at around 40 instead of the average person calling it quits in their 60s.
I'm afraid there will be more cases of this because most athletes coming in (This includes football too) are simply not educated enough to understand that their money wont sustain them after their playing days are over unless they have a solid financial plan right off the bat.
Most of these athletes, and not just basketball players, come from backgrounds where financial planning just did not exist. Honestly - pro sports has just turned into another way to pimp gifted black men. The black athlete is intensely talented, and if you channel the attention to inappropriate activites, partying, and groupies, it becomes easier to control them.
Most of them do not have two parents that are guiding them in making smart decisions. The first thing most athletes do with the big check is buy their mother a mansion-type home, and then find a way to have their boys as part of the lifestyle. They try so hard to keep it real, that they buy the excessive things to "stay true" and not be called a sell-out. The next thing is hooking up with the type of women they only saw in videos and help produce a few kids.
They feel invincible and do not realize that all it takes is a broken ankle, busted wrist, or some other mishap to end it all. To give a young, superficially educated, manipulated Black man $4 million in one year (and that is on the low end) is like givng a starving man a feast. They will be gluttons, eat far too much, and what doesn't get eaten is left to spoil.
Not all athletes will rate a shoe or an underwear contract. Not everyone has their best interest at heart. And if they don't pay attention to the examples that are in our face, such as Scottie Pipppen, Mike Vick, and others, it is always going to happen.
If basketball players are broke after five years of retirement, it is no one's fault but their own. In addition, this has nothing to do with drafting high schoolers into the NBA. Venus and Serena were 14 when they started playing professional tennis and when both retire, theyn are expected to be worth about $200 million+ dollars each. The reason why they will not be broke is because they have already planned for their careers after tennis and they did so because their father demaanded they do, saying he didn't want any gum chewing illerates on his hands when they can no longer play tennis.
These players are in the situation they are in due to the following:
1) Poor money management (and you don't have to be a college educated person to know that your assets must be worth more than your liabilities).
2) Haing a penis problem; no matter how rich you are, you don't father more children than you can afford.
3) Not knowing how to say no, even to relatives. Just because you are a mulitmiiloanire, doesn't mean the player is an ATM.
They need financial education. But they are so busy looking at the rap videos and some girls booty, they don't bother.
If you tell a 22 year old NBA player that by the time he is is 30 he will be broke he won't believe you. This happens EVERYDAY.
Instead of trying to be conservative with the cash- they want the BLING-BLING--- which is stupid. 18 cars???? why --- then when they tear their ACL and need to get surgery, game over.
But the bills keep coming! None of them start businesses. They get don't know where to start.
Kevin Garnett - has been the smartest - low key- stay out of trouble person in the league. He came out of high school, and his Moma - said---you are not going to end up on the news or in jail or broke. KG does his thing, because his parents - kept parenting.
8 kids by 7 different women is STUPID.
You won't be in the league 18 years....so what is the plan?
Ask SHAWN KEMP..."Johnny Appleseed", he's not even playing anymore - but he still has to make those child support payments....
Heck - don't they pay attention to what happens to the other brotha's in the league???
60% broke 5 years after they leave the league is a damn shame.
Ran through Millions like a dot.com company ---- and poof - you are back on the street - now, busted, broke, and no marketable skills!
Shawn Kemp -
13 children by 9 different stupid women
Kemp has been subjected to many paternity suits, having fathered thirteen out-of-wedlock children with nine different women.
NOW: BROKE AS HELL --with a drug problem
I'm not surprised about this at all. IT'S NO ACCIDENT THAT SOME OF THE MOST WELL PAID AFRICAN-AMERICANS ARE (sorry to say it, but the MOST IGNORANT) AFRICAN- AMERICANS (athletes and entertainers) who know little or nothing about financial planning, buy excessive bulls**t (as seen on MTV CRIBS and BET'S HOW I'M LIVING), and live only for the moment balling outta control, thinking nothing about their financial future.
To be honest with you, I am very disappointed in alot of "our" athletes, there are only a few that actually come out and speak on issues pertaining to the black community. It's funny how folks always ask "Where's Oprah" when something goes on concerning us, but no one ever asks "Where's Michael Jordan?", someone who has continually reaped the financial rewards of benefitting from money given to him from the black community for years ($200.00 pair of Air Jordans anyone?) But you never hear him come out and speak on Hurricvane Katrina, Jena 6, hell this year's election!
I swear both the NBA and NFL are the BIGGEST PLANTATIONS around, you have the WHITE MASTERS calling all of the shots, and BLACK SLAVES RUNNING AROUND DRIBBLING, SHOOTING, THROWING, AND PASSING, all the while remaining quiet when it comes to social issues, because they are afraid it will stop their cash flow, i'm just curious to find out how many of the ballers that went out to New Orleans this past weekend for NBA AllStar, actually gave back to our brothers and sisters down there, I don't recall seeing too many of them, it's like "Hey I can party like a rockstar down here and leave", but I will not roll up my sleeves and help build a house...
That is because most live in the moment and do not think of the future. Take for example Latrell Sprewell, When he was offered 21 Million, turned it down and what happened , no one else offered him a contract, ( Golden State Episode) and now he is in foreclosure, his boat got repossesed . etc. The most any of these atheletes do is invest in a business of several businesses and think that will hold them for the future. Everytime I see one on MTV Cribs, I think Did'nt anyone learn from MC. Hammer? I mean it's nice to be able to take care of your families and buy large mansions ect. But think about the future as well.
well maybe cus all the baby mamas still come for their lyons share and the NBA player ain't making paper like they use to.....men, money don't make you, you make the money! and sometimes the cheap comes out very expensive!!!! manage your money wisely, there is no reason a person making millions of dollars shouldn't be set for life...........
These guys don't have any common sense. You don't need a college degree to budget. They're swept up by the glamour, bling, and girls and they think this luxurious lifestyle will last forever. Yeah, and they also maintain their ties to the street which only invites trouble.
yankeefan said it best..but theres another thing I want to throw in there..EDUCATION. I know a lot of them go to college just to be noticed, play a couple seasons, and jump to the NBA..but still, what happens if you dont end up like Carmelo or LeBron? If someone was paying for me to go to some of the nations best universities & colleges, I'd at least take a couple of serious classes other than Basket Weaving 101. And when your run in the pros is up, you can at least have a degree to fall back on! Sure, you wont b making millions any more & living in a 13 bedroom house, but at least you'll have a stable income, and enough to pay the mortgage on a 4 bed 2 1/2 bath house in a nice neighborhood! Thats all I'm saying. Stay in school !
I agree with everything that is being said here. It is also important to understand that african americans who are wealthy are consitered to be "new money" and when they get this "new money" they spend it on things that just proves to be total nonsense like chains, rims, cars ect. white people and other races have "old money" because for generations, they invest their money in solid ventures to ensure that their next generation will have money. what are these athletes going to leave their children when they are gone, a chain? Some spinning rims? we got to do better!!
There are blacks who are considered "old money"; the reason why you don't know who they are is because they make sure that you don't know who they are (a la the (white) Pritzkers of Illinois). There are a whole lot of white people who are new money just like most blacks are, but most of them use common sense when dealing with their money, so that excuse isn't working for me.
These young Black Athletes / Entertainers need to first learn how to take care of themselves then take care of others. I know it is an honor to buy your mom a house, however the first thing you need to do is buy one for yourself then buy one for mom. Better yet have mom live in your home (for a while). You are not there the majority of the time. If you have a real mother she will take care that everyone is doing you right. This may also cut down on having children you did not need anyway.
Limit the amount of people from the "old neighborhood" Sorry, but most of them don't mean you well, and why are you trying to impress people who are jealous of you anyway? You know your real friends. Cut the others loose.
Finally, family. They are the same as friends. Most will drag you down and are jealous of your fortune.
There are two main reasons the Nouveau Riche act the way they do 1. For noteriety 2. Guilt.
Once you squash those emotions you will be set for life.
Remember Bo Jackson (WHAT A BODY MMMM!)...played baseball for the K.C. Royals then switched to FOOTBALL WITH THE RAIDERS & blew out his (steroids??) hip . Now that man is smart . he went back to school after his career & got his degree & is doing just fine.
Its the same with actors & rappers & all the other sports, They can only see the now & not the later .
What ya gotta realize is most of these guys are not all-stars. The average player is just that average, maybe makes a few mil max during maybe a 6-7 career tops. A lot of these guys were top players in college and basically didnt' do anything in college, don't have any other skills. If they don't invest their money wisely it is very easy for them to end up in a bad spot. The NBA should do something to help these guys invest their money a little better though.
I believe this because they act like the aint use to nothing and have to get five of everything. They really need to be putting it all in stocks and bonds are buy themsevles a couple of businessess, and get a good accountant
Utter and complete stupidity and irresponsibility.....
The article laid out a lot of the reasons why.....Who needs 14 cars? That much money for items that depreciate in value the minute you take them off the lot?
Then there was the brotha who had 8 kids by 7 different women. Cats need to realize that the child support obligations don't disappear when the nba checks do.
Cats can enjoy money and their life without going completely overboard with excess.
A lot of cats need to hire a trusted accountant, properly invest their money, save and avoid overly frivilous spending. The life of a pro baller doesnt last forever, and for many its actually pretty short. Its sad how a lot of these guys end up.
And an age limit is not the answer....Because there are too many dudes who sit around on a college campus taking junk classes just to stay eligible and dont actually learn anything...and end up in the same position when they come into the league at 22. Age doesn't mean maturity. Kevin Garnett for example came out of high school and he's avoided trouble, got his financial world and life in pretty good order it seems.
FINALLY, a chance to plug in my BOY KEVIN JOHNSON,
Kevin came back to his home town (SAC TOWN) and he's running for mayor this year, and oh yeah, he got that degree in politcal science on the off seasons of his N.B.A. career.
And In case ya don't know,,,,, Kevin's most memorable moment....That DUNK on Olajuwon. #7, phoenix suns...... Kevin, Magic and David Robinson (Twin Towers).... they are still the bizz.
They totally GIVE BACK so they will ALWAYS be blessed and NEVER go broke.
If they'd think with their brains and not their peepee...
How disrespectful to the parents that raised them to go off and splurge like that? We're you [that] poor before that you need 15 mofo's cars? Is it [that] serious?!?!
I was speaking about this sh*t last night while watching the ALL STAR game, so basically I don't really have too much say about it! B/c I ranted out!!!
And, these dumb asses who keep sleepin with these vulture- skeet on me- type- gold-diggers JUST B/C THEY CAN, that's EXACTLY how most of them fall head first into debt. Sharing money with broads they don't know and kids they didn't want! STUPID!!!!
Ya'll better get ya'll heads out ya asses b/c please believe those car dealerships and mortgage companies DO NOT mind taking your money as long as they get paid!!!
Thank you, MediaTakeOut, for posting this.
Jason Kapono (and I hate that I don't know who this man is) needs to educate his peers. I don't drool when I watch MTV Cribs - I CRINGE.
This is an epidemic that affects many Black Americans. Athletes aren't the only ones that are guilty of this; their situations are just more evident.
I try to believe that our materialist ways are a part of our culture. I've even tried to grasp it as "That's just who we are as a culture." But I always come back to the same conclusion: We can be plain stupid when it comes to finances.
I hate to see guys with rims that cost thousands of dollars. I hate to see women with Coach and Dooney & Burke purses with children that do not have decent shoes on their feet. I know that a lot of these designer bags aren't authentic, but why would you want to give the ILLUSION that you paid $500 for a bag? To me, you just look STUPID.
Now I can be very judgemental when I see someone with a designer bag. Many times I base my opinions on who I THINK the person is. And that's just plain wrong. But many times I am right. Many times these people aren't in the situation where they can comfortably pay $500 for a bag.
Before you use a good percentage of your paycheck on a luxury, ask yourself these questions:
Do I have a retirement account? Am I contributing enough right now to retire comfortably? If not, am I working towards that?
What about a savings account? Do I have enough in my savings account to cover an emergency? Do I have enough in there to pay for my living expenses for a few months should I or my spouse lose a job?
Do I have good credit? If not, am I trying to build/rebuild it?
Do I own my home? If not, am I trying to become a homeowner?
Am I saving for my child's education? If not, am I working my way to that point?
I am 25 years old -- pretty young still. I have TWO retirement accounts. My husband and I own our home. (We don't have children, so I'm not yet saving for a child's education.)
But I'M NOT PERFECT. I have a savings account, but it is SO not where it should be. I invest in the stock market a little, but I have no idea what I'm doing! But, all the time, I'm working to better my financial situation.
I didn't grow up in a home where my parents were great with money. In fact, I'd say it's quite the opposite. I cringe when I see my mother's bank account. I cringed when she told me how much money she has saved for retirement. And my daddy works hard, but he's so broke.
I haven't used the excuse that "I've grown up where I wasn't taught how to handle finances." I've used my situation as MOTIVATION. I don't wan't to be struggling like my parents are.
So, yes, I've been all over the place with this post. I just wish that Black Americans take the time to better their financial situations. I remember when I was making $6.50/hour working at a hotel. Don't you know my little broke self went down to the bank and opened an IRA (Individual Retirement Account)? I only had $25 to spare, and could only contribute about $30 a month. Those folks down at the bank probably laughed their butts off at this little poor, black girl. But I was doing that to get in the habit of putting aside a part of my income, no matter how big or small, for my future.
PLEASE, MY FELLOW BLACK AMERICANS, EDUCATE YOURSELVES. IT DOESN'T MATTER IF YOU'RE MAKING $7/HOUR OR $7 MILLION DOLLARS/YEAR. MONEY DECISIONS WILL FOLLOW YOU FOR THE REST OF YOUR LIFE. MAKE GOOD ONES!
This is the story with a lot of athletes and rappers. Most of them come from poverty and never really learned how to manage their money.
So when they're broke 1 day and have millions at their disposal the next, they spend in excess on things they've always wanted but never had.
Then you have those who try to take care of (((ALL))) their fam and friends to bring them up outta poverty...but once the money runs out, the fam and friends are no where to be found.
My advice is that they should do their research and find a trustworthy advisor to teach them how to manage their money.
I don't know who all seen that episode of Keyshia Cole when she wanted to buy her mom and sister a home and she had her advisor telling her not to b/c it would be beyond her limit. She was so smart to hire someone like that. That's what all these other celebs and athletes need to do.
luscious-vanilla, I didn't catch that episode of Keyshia Cole but that's smart of her to hire a respected professional to advise her on finances. I know she wants to help her family out and her family definitely needs help, but buying a house for everyone only allows them to live somewhere. They've got to learn skills to earn a living like everybody else. The proverb goes, "Teach a person to fish and you feed him for a lifetime."
Guarantee you the 40% are mostly white. Out people are too materialistic, look at MTV Cribs, you see these huge houses (where they are the only ones living in them), cars up the wha-zoo and some of the most gawdy looking jewerly I've ever seen in my life and this is not just ball players but rappers too. Then you see these rocker's and white players who have simple modest homes that suit their families, so I wouldn't feel sorry for anyone who has to liquidate a bunch of cars, jewerly and houses. Come on you can sleep in 18 bedrooms or drive 20 cars. I hear a lot of them talk about growing up broke and never wanting to go back to that, it doesn't take a college education or hell even a high school diploma to uderstand that in order to not go back YOU NEED TO SAVE.
@ Growing --- good points! ON Jason Kapono he came into the league with the expansion Charlotte Bobcats. Hes a three point shooter/specialist. I think that he won the 3pt Shootout over the weekend. Oh yeah, hes a white boy whos game is like Steve Kerr or Mark Price... if that means anything to ya...
____ ------______ -----
@ Hottlatte ---- this comment was so on point --- I could not have said it any betta!
Most of them are being advised by people with last names like Cohen...and Stein... and Horowitz... and Greenberg. You know, people they can TRUST who have their BEST INTERESTS in mind.
HOwever, you must know that the aforementioned MONEYBARRONS charge a lot for financial advice. Many of our brothas going into sports come from poorer under-educated backgrounds lacking self discipline. Oftentimes, they already have a child or two and their credit is shot before the ink is dry on the big CONTRACT. Not to mention all the posse, peeps & friends on the payroll once they get to the top.
Hell, I remember Roy Hinson from way back when... He was one of the multimillionaires in the 1980's... He played with Cleveland then New Jersey. Then the dumbazz Cleveland Cavaliers paid John Hot Rod Williams 25 million (and he didnt even start) Meanwhile JOrdan was being paid about 2 to 3 mill per year. GO FIGURE!!
**** wow, Ive just time-stamped myself****
EDUCATION is the KEY!
There is a saying that chris rock uses that states money turns a bald spot into a part. The reason why I opening up with that statement is that we idolize sports and not brains in this country, I don't blame anyone for making a million dollars but soceity needs to get it's act together on who should be rewarded with a high salery and who doesn't. It is sad to see a young person makes money do all he/she wants to and at the end of their career doesn't know that they can't afford or do the things that they use to do. Everyone can't be a sports commintator or be the coach or presdient of a team. This past football season a player for the miami dolphins was to play a game in london england and he can't even find england on a map. Not to mention making his college look bad, his highschool and all the teachers who class room he walked in; the saddest thing is that he will be a millionaire and I will not see half the money he has and I have two degree LOL.
Word to the wise... Wrap it up (Condoms), take some business classes, and tell your family members (except mom) and hangers-on to get a job. You can't take care of everybody, a million dollars does not go as far as it use too. A fool and his money is soon parted. PPPEEEAAACCEEE!!!
Not suprising. But it's because they are reckless with their spending habits. I don't necessarily blame them, if you are rich, why buy a honda when you can get a jaguar? They spend more simply because they can, and they also have more to spend. But nothing last forever. That's why when you are rich, you need to monitor your spending habits. You need to see what you need and want. Things you want, splurge once in a while. Really the only people who can afford to be reckless with their money is wealthy people, billionaires, Oprah,Bill Gates,etc NEXT!
Based on one of the comments their situation has nothing at all to do with getting involved with or marrying a White women. Only a lonely, bitter, angry, hateful, and misguided female would make such a ridiculous comment. It's no wonder you don't have a man in your life you are to stupid to have one so you spew your venom as a justification for your issues. The whole topic of White women and black men is an old tired one. Get your own man and it would not matter what someone else does. As you can tell such ignorance pisses me off. With black women like you out there it is no wonder thank brothers go to the other team. It has everything to do with ignorance and lack of exposure to the real world. You can take the kid out of the ghetto but you can't take the ghetto out of the kid. That's not to say that all black NBA ballers come from lower class backgrounds. And unless they take education serious it will continue to happen.
A FOOL AND THEIR MONEY SHALL SOON PART- PERIOD!IF WE DIDNT LEARN ABOUT HOW TO HANDLE AND GROW MONEY FROM OUR PARENTS GROWING UP ( SUCH AS MYSELF) THEN WE HAVE TO TAKE THE INIATIVE AND LEARN AS ADULTS. MY BF SAYS IM THE CHEAPEST PERSON HE KNOWS AND NOW HE IS LEARNING FROM ME. I SAVE AND INVEST OVER 20% A MONTH AND I STILL MANAGE TO GIVE. ITS NOT ALWAYS EASY...SO WHAT THERE ARE PLACES TO GO AND LEARN WHAT TO DO WITH YOUR MONEY, FIXING YOUR CREDIT, ETC...EVERYTHING U WANT OUT OF LIFE IS ALL UP TO YOU. I SELL REAL ESTASTE AND IT BREAKS MY HEART TO SEE SO MANY PEOPLE WITH 400 CREDIT SCORES WHO ARE FORCED TO SELL THEIR HOUSE AND WHILE I AM DOING THEIR OPEN HOUSES THEY ARE OUT SHOPPING!!!! ITS NOT A BLACK THING ITS A DUMB THING.
What they need is a freaking vasectomy. Dam pu#$y can't be that good to throw away all that money to these hoe's trying to get them caught. Dudes need to cover it up, before they go dry up.
http://www.chaimex.com free classified listing.
THAT'S NOT SURPRISING AT ALL!! THEY SPEND THEIR MONEY ON STUPID STUFF INSTEAD PLANNING FOR THE BIG RETIREMENT DAY THAT'S A SHAME ...WITH ALL THAT MONEY I WOULD HAVE SOME TYPE BUSINESS SOMETHING STASHED FOR MY KIDS AND THEIR FUTURE.
Big dummies, I have my 401k and bought stocks. I also am self-employed, I will be alright! I dont really get into sports or entertainment like I used to, just because of the fact that I would be contributing to somebody's downfall
It's called discipline,knowing that the checks will stop coming in, PLANNING and hiring a good money management company that will help with good investments in the long run. I hate to sound like an E.F. Hutton commercial, but it's called planning, NBA idiots.
An NBA player should never be broke. I mean even the 12th man who doesn't even play gets a least 2 million. It's not like the NFL where their contracts are not even guaranteed after a certain amount of years. In most NFL contracts the money is mostly paid up front in the signing bonus. Personally I think the NFL players are underpaid. At least the NBA contracts are guaranteed so if they mess up their money then they're stupid.