Friday, October 14, 2016
$62 Million Dollars Gone -- Another NBA Player Files For Bankruptcy
Darius Miles, a former player for the L.A. Clippers star, has filed for bankruptcy. The 6 ft 9 in professional basketball player was the 3rd overall pick in the 2000 NBA draft and played for the Los Angeles Clippers. His nine-year contract earned him $62 million, but now it's gone. It's hard to comprehend $62 million gone so quickly. What happened?
Too much too soon?
According to a Sports Illustrated article, 60 percent of former NBA players are broke within five years after they retire. Within two years of retirement, 78 percent of former NFL players have gone bankrupt or are under financial stress. But why? Bad investments and medical problems are cited as two common reasons by Sports Illustrated.
Injuries and bad investments
In Miles' case, it was bodily injuries -- he missed two seasons due to injuries -- bad investments, and legal challenges. He owes $20,000 in child support, he owes the IRS $282,041, and he lost $100,000 in a bad real estate deal in California. Two years ago, he sold his home for $500,000. His career with the NBA ended in 2009.
He's not the only one
It's no secret that professional sports stars make a lot of money. Millions! It's hard to believe that some of them go broke. But this has happened many other sports celebrities including Mike Tyson, Derrick Coleman (NFL's Minnesota Vikings), and Kenny Anderson (NBA's Boston Celtics) - just to name a few!
Because of this, both the NFL and the NBA have launched financial education programs to help their players better manage their finances, but only time will tell if the programs are really working!