Ex-NBA Player Explains How Professional Athletes Go Broke

Josh Childress, a former NBA player who was picked 6th in the first round of the NBA draft of 2004 sits down and explains how professional athletes go broke despite signing 8 figure contracts.

Josh is currently playing professionally in Australia, but has spent 8 years playing for the NBA and a few years playing in Greece.

Childress was picked 6th overall in the 2004 draft and signed a four year rookie contract worth $11.7 million.

Childress sits down with Grit Media and explains the trappings of a professional athlete, and how easy it is for them to go broke, he starts of by saying that when you first sign a contact like he did, you think you have $11 million to spend, but it actually comes out to about $5 million over four years, so that million dollar house you buy no cost way more than you thought.

He says that on top of that with a 2-4% agent fee, then there is the NBA escrow at 10%, and the money gets eaten up pretty quick.

That is all contingent on the fact that he was picked 6th, certain rookies will be making just the league minimum and significantly less.

He also speaks about getting taken under the wing of a veteran, and how spending expectations change.

See the whole interview below:

 

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