NBA players earn millions every year through their contracts. And a few million more from their sneaker deals, endorsements, and other ventures. In the past, despite fewer opportunities, players still earned decent amounts. Then what is the reason behind players becoming poor right after their retirement? Back in 2008, a report showed almost 60% of NBA players had trouble handling their wealth and went broke soon after the end of their careers. Something which Charles Barkley and Shaquille O’Neal have previously mentioned during their interviews as well.

Chuck has earned millions with his contract. But he would have almost lost all the money if it hadn’t been for his former teammates who advised him to manage his finances. In his latest interview with NFL legend Shannon Sharpe, Barkley discussed the importance of sports athletes managing their finances, reflecting on his own experience and the advice of his former teammates. He further advised the current NBA players to not spend lavishly on luxury brands such as Dior, Louis Vuitton, and more. 

“I don’t mind a little ice, but too much ice. They do know that money ain’t gonna last forever, right?” Chuck said to Sharpe, who agreed with him. During the conversation, Chuck revealed that he spent extravagantly on cars. Owning some fancy expensive cars isn’t new for athletes. The Philadelphia 76ers legend owned 3-4 luxurious cars for his rides. That is when his former teammate Julius Erving reminded him to spend carefully on things.

While the salary was indeed a huge amount, Erving advised Barkley that he would need to save the money for the rest of his life. “[Dr. J] said, ‘Chuck, this money got to last you for the rest of your life. Everybody knows who you are. You pull up in a Kia, they know that’s Charles Barkley. You pull up in a Mercedes Benz or a Rolls Royce, that’s Charles Barkley,” Chuck recalled Dr. J’s words.

NBA stars that went broke

Christian Laettner is one of the players who had the opportunity to play with the Wizards, Hawks, Timberwolves, Detroit Pistons, and the Mavericks. Throughout his NBA career, the former NBA player earned about $60 million from his contracts. As per sources, the bank took possession of his house in 2015.

Another name on the list is 4x All-Star Latrell Sprewell. The former New York Knicks player was known for his splurges on luxuries. He bought a yacht and two luxurious homes. However, both houses and his yacht were foreclosed by the bank in 2007 and 2009.

6x All-Star Shawn Kemp earned $90 million during his career with NBA contracts as well as his deal with Reebok. He managed to get his net worth back to $5 million after he had to pay for child support and high legal fees after being caught in possession of dr*gs. 5x NBA champion Dennis Rodman and Antoine Walker are the other two names who made millions in the league but lost most of their money due to poor financial management. If someone wants to know how to manage finances, don’t look further than Shaquille O’Neal.

The business-savvy Shaquille O’Neal 

O’Neal amassed approximately $292 million through his NBA contracts. Following his retirement, he joined TNT, where he earns around $10 million annually. In a conversation with the CNBC crew, the 4x NBA champ shared more details about his investments and how he manages his finances. Some clever investments have indeed helped the Big Aristotle. The Los Angeles Lakers legend has a net worth of $500 million. He is still part of many companies and endorsement deals. And so has been his advice to his friends.

He further emphasized the need for learning business knowledge and finance management skills for players. He has always helped advise his former teammates such as Dwyane Wade on how to make themselves more marketable. 

If the money that NBA players earn is mismanaged, it might land them in financial trouble and it has. We have seen numerous athletes including NFL players and boxing legend such as Mike Tyson and more face the same issue in the past. With schedules so hectic, it gets difficult for the athletes to keep in check. Or sometimes, they end up making some really bad choices.