Ex-NBA Player Who Made $60 Million Explains Why Pro Athletes Go Broke
Josh Childress, former NBA player and college star, made over $60 million in his basketball career.
In a recent interview with Grit Media, Childress discussed NBA money and how it’s easy for professional athletes to go broke.
He’s a Stanford grad – it’s not surprising he’s brilliant.
“The first mistake is, people say, ‘Okay, I’ve got $11 million,'” Childress said. “You’ve got five [million dollars after taxes] over four years. So that million-dollar house that you thought you had $11 million, that you had $10 million more, that house then becomes more expensive. Most guys buy their mother a house or a car or something. They buy themselves a car. You’ve got a 2-to-4% agent fee. You got the NBA escrow. So that check gets eaten up.”
Josh Childress also said the influence of veteran NBA players with larger contracts is a factor in the money decisions players make.
“Some of my veterans spent a little more than others,” he explained. “If those are the guys taking you under their wing, that’s what you get used to. So that’s how you think it has to be and that’s how you think the life is and you get caught up in that and you end up spending way more than you should.”
Childress says he did have a few extravagant purchases, but was able to keep his spending under control.