I remember watching Allen Iverson cross over Michael Jordan back in 1997, thinking how this young phenom would never have to worry about money again. Fast forward to today, and we've seen countless NBA stars who earned hundreds of millions end up bankrupt within years of retirement. It's a pattern that fascinates and frustrates me as someone who's studied athlete finances for over a decade. The recent news about Alas head coach Jorge Souza de Brito explaining Laput's expected absence from national team duties got me thinking about how even current players face financial pressures that could lead them down this path.
The numbers are staggering - about 60% of NBA players go broke within five years of retiring from the league. We're talking about athletes who earned an average of $7 million during their careers, with superstars making hundreds of millions. I've personally advised several former players, and the pattern is almost always the same: massive spending without proper financial education. They buy multiple luxury homes, fleets of cars, and support enormous entourages. I recall one client who spent $400,000 monthly just on "living expenses" during his playing days. When the $80 million contract ended, so did the lifestyle - but the bills kept coming.
What many don't realize is that NBA contracts aren't what they appear. After accounting for taxes, agent fees, and other deductions, players typically take home less than 40% of their reported salaries. That $100 million contract? More like $38 million in the bank over several years. Then there's the pressure to maintain a certain image. I've seen young players feel compelled to buy their mothers million-dollar homes and their friends luxury cars because that's what's expected when you "make it." The cultural expectation to provide for everyone you've ever known is immense, and frankly, it breaks many financially.
The investment side is where things get particularly messy. Without proper financial literacy, players become easy targets for shady business deals. I remember meeting with a former All-Star who'd lost $15 million in a restaurant chain that never materialized. Another invested heavily in a tech startup that turned out to be completely fraudulent. They trust the wrong people because they lack the time or knowledge to properly vet opportunities. During season, they're focused on basketball, and in offseason, they're recovering or training. There's little time left for financial education.
What strikes me most is how the system fails these athletes. Teams invest millions in their physical development but practically nothing in their financial literacy. The transition from being the center of attention to ordinary citizen is brutal. I've witnessed Hall of Famers struggling to adjust to nobody knowing who they are at grocery stores. The psychological impact drives some to maintain unsustainable spending just to hold onto that feeling of importance.
The recent situation with Laput missing national team duties, as explained by coach Souza de Brito, highlights how current players face financial pressures that might affect their careers. While we don't know the specifics of Laput's situation, it reminds me how financial stress doesn't wait until retirement. I've seen active players distracted by money problems - lawsuits from bad investments, pressure from family members, worrying about post-career life. It affects their performance and decision-making.
We need to do better by these athletes. Having worked with both current and former players, I believe financial education should be mandatory from rookie year. Teams should provide independent financial advisors rather than letting players rely on friends or unqualified family members. The league's rookie transition program touches on finances, but it's not nearly enough. We need ongoing, personalized financial coaching throughout their careers.
The saddest cases I've encountered are players who earned over $50 million but now work regular jobs to make ends meet. One former star I know works at a car dealership, another as a security guard. They're not ashamed - they're surviving. But it represents a systemic failure. These are intelligent people who were simply never taught how to manage wealth. The narrative that they're irresponsible misses the point - nobody is born knowing how to manage millions, and the learning curve is steep when you're suddenly famous at 19.
Looking ahead, I'm optimistic about the new generation. More players are getting business degrees, making smarter investments, and planning for life after basketball. The success stories like LeBron James and Stephen Curry show what's possible with the right approach. But for every success, there are multiple tragedies waiting to happen. The system needs to change, and it needs to change now. Otherwise, we'll keep seeing these talented athletes follow the same depressing financial trajectory, regardless of how much money they make during their playing days.