NBA is one of the most lucrative sports leagues in the world. The business behind the league is responsible for putting millions of dollars into the pockets of the athletes. Despite that, many ex-NBA players went broke a few years after their retirement and over the years several athletes have spoken about it. Recently, Lou Williams broke down the division of the pie and how it ultimately leaves athletes in a bad spot.
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Lou Williams joined the league in 2005 and played till 2022, earning more than $85 million from salaries, as per Spotrac. During an appearance on The Underground Lounge, Williams talked about the primary reason why athletes run out of money. He said in the average NBA career that is of five years, players make around $5 million and there are a lot of takers as soon as the money comes in.
“You make $5 million, $2.5 of that, gone. You got agent fees, probably another fifty of that gone. You got your dues, a lot of people don’t know we got dues. So, everybody put their money in the pot…I think the dues is 15-20 grand a year. Everybody put it in the pot, that’s how we’re able to get our healthcare and all of that type of sh*t.”
Williams said that after all of this, the personal staff, financial advisors etc. take their cut from the pile as well and eventually, there’s hardly a million dollars left.
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Williams said that athletes can flaunt their money because it’s on paper, but in reality, they’re keeping a very little percentage to themselves from what they make. He said, “Before you know it, you not a millionaire no more.”
Many NBA players spend lavishly, which becomes a problem in the long run. However, players like Shaquille O’Neal, Magic Johnson and Michael Jordan have made fortunes for themselves even after retiring from the game with their business acumen.
Shaquille O’Neal’s word of advice for the youngsters
There aren’t many people more qualified than Shaquille O’Neal when it comes to talking about money and sustaining your status in the game. Shaq is one of the wealthiest athletes in the world and he credits his father for instilling the important habit of investing money in him. During an appearance on CNBC Television, Shaq talked about his investments, how he has continued to grow his brand and gave advice to upcoming athletes.
Shaq said, “I’d tell them that this money is not gonna last forever. You gotta save it, you gotta invest it, and you gotta be smart.” Even though Shaq burnt through his first NBA check, he also learnt an important lesson that day about smart expenses. Since then, he got his act together and today is sitting at a net worth of over $400 million.
