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NBA Players Who Went Broke
- Allen Iverson and Dennis Rodman are famous NBA players who went broke.
- Their financial downfalls highlight the dangers of poor financial decision-making.
- Studies show 60% of NBA players face bankruptcy within five years.
Making a lot of money playing in the NBA is one thing. But keeping all of it and staying rich is another, as many prominent players found out the hard way. From Hall of Famers like Allen Iverson and Dennis Rodman to fan favorites who had shocking falls from graces, NBA players who went broke present a cautionary tale for both players and fans.
How Many Pro Athletes Go Broke?
Studies show that around 78% of professional athletes go bankrupt within three years of retirement, and 60% of NBA players face the same fate within five years. Short careers, averaging just 4.5 years in the NBA, and challenges like high divorce rates and poor financial planning contribute to this trend.
Notable examples include Mike Tyson, who declared bankruptcy in 2003, and Allen Iverson, who faced financial troubles in 2012. Even Michael Jordan’s net worth took a hit during his infamous 2006 divorce, costing him nearly $170 million, though he avoided bankruptcy.
Many NBA players who went broke, such as Antoine Walker and Shawn Kemp, highlight the risks of mismanaged wealth. Despite earning millions, poor investments and lavish spending led to their downfall.
As Charles Barkley wisely said, “This money got to last you for the rest of your life.” Planning early retirement and living within one’s means is essential to avoid financial hardship.
6 Famous NBA Players Who Went Broke
The stories of athletes losing fortunes serve as cautionary tales. Here are six NBA stars who went from riches to rags after retirement.
1. Allen Iverson
Iverson’s extravagant lifestyle ultimately led to his financial ruin. Despite earning one of the NBA’s richest contracts during his career, the former MVP lost a staggering 200 million fortune. By 2012, just two years after his final NBA season with the 76ers, he became one of the highest-profile bankrupt NBA players after defaulting on a nearly one-million-dollar payment for customized jewelry.
2. Dennis Rodman
The NBA legend became one of the most notable athletes who went broke when he filed for bankruptcy around his 2011 Hall of Fame induction. His financial struggles stemmed from gambling losses, three costly divorces, and fraud. Rodman’s financial advisor, Peggy Ann Fulford, stole millions from him, leading to her arrest.
3. Shawn Kemp
Kemp, one of the highest-paid NBA players during his career, faced significant financial troubles after retiring. Despite earning over 90 million (nearly 160 million in today’s dollars) by the time he left the league, Kemp was burdened by hefty legal bills from his legal issues and failed business ventures. The six-time NBA All-Star also reportedly made monthly child support payments to six different families, which drained his wealth.
4. Latrell Sprewell
Sprewell, a four-time NBA All-Star, went bankrupt despite earning $100 million during his career. Known for his on-court talent and frequent spats with coaches, including clashes with some of the highest-paid NBA coaches, Sprewell’s financial downfall was dramatic. He lost his fortune due to tax evasion and a poor decision to reject a $21-million contract extension.
5. Antoine Walker
One of the most memorable NBA players who went broke, Walker lost his entire fortune of over $108 million earned during his career. His extravagant spending, heavy gambling losses, and poor money management did him in. At one point, the three-time All-Star was forced to sell his championship ring to address his mounting financial troubles.
6. Eddy Curry
Curry, once a promising lottery pick, is now among the NBA players that went broke. Despite earning 70 million over an 11-year career, his net worth dwindled to just $3 million. Curry generously helped people in his community. However, his poor lifestyle choices and financial mismanagement led to his downfall.
What NBA Player Went Homeless?
Once a promising NBA player, Delonte West faced a dramatic fall from grace, becoming one of the most talked-about NBA broke players. His struggles with mental health, substance abuse, and multiple arrests have led to periods of homelessness, highlighting the challenges some athletes face after their careers.
West’s story also ties into one of the most shocking scandals in NBA history, as rumors swirled that he had an affair with LeBron James’s mother during their time together in Cleveland. His journey is a stark reminder of the pressures and pitfalls that accompany life as an NBA player.
What is the Least Amount of Money an NBA Player Makes?
The lowest NBA salary for the 2024–2025 season is $1,157,153, which applies to players without prior experience. This amount increases with years of service. Currently, Tyler Smith holds the title of the league’s lowest-paid player.
While this may seem modest compared to the massive contracts of NBA stars, it’s still a livable salary if managed wisely. However, stories of broke NBA stars serve as a reminder that even more significant earnings can disappear without proper financial planning. Managing money effectively is crucial, regardless of the size of the paycheck.
