NBA legend John Stockton recently shared some blunt financial wisdom on The Maverick Approach podcast, breaking down the three biggest reasons why so many professional basketball players end up going broke despite earning life-changing sums during their careers. His message was clear the path from multimillion-dollar paychecks to financial ruin is shorter than most people think.
“Well, it doesn’t take much when the money is that big. You just don’t pay your taxes for one thing. Don’t pay your taxes one time and you’re making — what are these guys making, 50 million, 100 million?”
“If you don’t pay your taxes one year, penalties and interest and all these things can eat that up in a heartbeat. So, number one, do that. Number two, you get married and get divorced. That cuts it in half.”
“Number three, you buy things that don’t continue to have value. If you buy a bunch of cars, you buy a bunch of jewelry, whatever. So, I think guys a lot of times come from nothing.”
“For the first time, they have this opportunity, so they want to take care of their mom, they want to take care of their brother, they want to take care of their buddies, they want to take care of everybody.”
“Then maybe they think about those taxes and a couple of other things, and all of a sudden it jumps on you. And to repay those types of debts can’t happen. You can’t then go back to normal life when you’re not making the $50 million a year and pay those penalties.”
“So, it could happen easier than you think. But it’s a good reason to have your head on your shoulders and pay attention.”
Stockton began with what he considers the most dangerous pitfall: not paying taxes. He explained that skipping tax obligations for even a single year can cause catastrophic consequences. The combination of government penalties, compounded interest, and the sudden depletion of funds can put even the wealthiest athletes in financial quicksand.
The second trap Stockton identified is divorce. In the high-profile world of professional sports, relationships often face unique pressures, and divorces can be financially devastating. With settlements, legal fees, and potential long-term financial commitments, the hit to a player’s net worth can be as damaging as a bad investment and often irreversible.
Stockton’s third reason is spending money on depreciating assets. From luxury cars to high-end jewelry, these flashy purchases may look like symbols of success, but they rarely hold their value.
He also shed light on another contributing factor, the pressure to financially support friends and family. Many players enter the league from humble beginnings and feel a strong obligation to take care of those closest to them.
The biggest danger, according to Stockton, comes when a player’s career winds down. Once the massive contracts are gone, trying to repay accumulated debts becomes almost impossible. Without a proactive approach to financial literacy, even the highest earners can find themselves in financial collapse.
Stockton’s message is ultimately one of caution and preparation. His advice is simple but essential: keep your head on your shoulders, pay attention, and take responsibility for managing your money.
In a league where financial caution is often overshadowed by lifestyle expectations, his words serve as a reality check for both current players and the next generation entering the NBA spotlight.
