NBA and NFL players have been known to spend money just as fast as they can make it. 78% of players in the NFL go bankrupt or get into financial troubles within only 2 years of retiring. 60% of NBA players go bankrupt after only 5 years of retirement. This problem has allegedly caught up to Philadelphia sports star Allen Iverson.
Allen Iverson is a Philadelphia sports legend who played for the 76ers. He was one of the most exciting players to watch in the late 1990’s and the early 2000’s, receiving many awards in his career. Allen played in 11 All-Star games and won two All-Star game MVP awards. He was also a 3-time NBA steals leader, 7-time minutes leader, 4-time points champion, and won an MVP award in 2001.
Iverson earned over $200 million in his NBA career. It seemed as though he was on top of world for a few years. The question that everyone is thinking is, “How did a man who once made $200 million dollars go broke in just a few years?” Here are some reasons why.
There are 82 games in an NBA season and around half of them are away games. Iverson didn’t like to carry luggage around. He never brought clothes or jewelry with him to away games. Instead, he would buy a whole new wardrobe in every city that he visited, leaving all the clothes he bought in his hotel room when they left. He was also known to have garages full of luxury cars. One time he was pulled over while driving his Lamborghini, and Iverson dared the cop to impound his car because he said he has ten more. Those are just some of the stories about his crazy spending habits.
Most money that big name athletes get is from product endorsement. The only problem was that Allen was not the type of person that companies wanted to be associated with their products. The fact that he was in jail as a teen didn’t help either.
Now Iverson is struggling to maintain what he has. He is in a lot of debt and is having to sell his possessions to try to pay off the things that he bought when he was rich. One of his mansions that he once had was foreclosed. He also claimed once that he didn’t even have money for a cheese burger.
Another one of the many reasons why NBA players go broke after they retire is because a good athlete is only valuable for about 15 years. If they were smart with their money, then they would make 15 years of checks last a lifetime. These players get used to spending millions of dollars and not having to worry about it. Once that continual flow of money stops, then they are left with loads of debt. Those spending habits that they have is not just something they can stop. Also, most NBA players come from places where they didn’t have much money. Then they get million dollar checks and don’t know how to ration it properly.
Allen Iverson’s financial rise and fall is used by many financial advisers and is told to young athletes to try to warn them about what can happen when you neglect the future.