NBA Players Who Went Broke – List of the Most Unfortunate

by Dan Holmes, 29 May 2025

Is it better to have never been rich or to have been rich and lost it all? These NBA players could tell you, because these few ballers ended up earning millions before losing all their riches. The list of NBA players who went broke will surprise you.

There are several reasons why NBA players go broke. © Image by Dan Holmes.

It’s a cruel irony of professional sports: the same players who once pulled up from 30 feet now pull up short at the ATM. The NBA has minted thousands of millionaires, yet some of its biggest stars have ended up broke. For those players, their fortunes disappeared quicker than a fast break. The worst sort of NBA news is when that happens.

Why do athletes earning $20 million a year wonder if they can afford lunch? The reasons are many: bad investments, bad friends, unchecked spending, and the painful realization that stardom fades but bills do not. Here are some of the most notable NBA players gone broke, with stories that are both cautionary and hard to believe.

NBA Players Gone Broke

Here are a few of the newsworthy NBA stars who lost all, or most of their fortune:

• Allen Iverson – Despite earning over $200 million, Iverson faced significant financial troubles due to spending habits and poor investments. A trust fund from Reebok is helping sustain him.
• Antoine Walker – Made over $100 million in his career but filed for bankruptcy two years after retirement due to gambling, bad investments, and lavish spending.
• Latrell Sprewell – Known for turning down a $21 million contract extension, saying it wasn’t enough to feed his family. Later faced foreclosure and yacht repossession.
• Vin Baker – A four-time All-Star who lost over $100 million due to alcoholism and poor financial choices. He later worked at Starbucks while rebuilding his life.
• Dennis Rodman – While not officially bankrupt, Rodman faced significant financial and legal issues, including unpaid child support and lawsuits.
• Derrick Coleman – Earned $87 million but declared bankruptcy in 2010, reportedly due to real estate losses and excessive generosity.
• Christian Laettner – Faced several lawsuits from creditors and former business partners, and owed millions despite a long NBA career and endorsements.
• Shawn Kemp – Father to at least seven children with six women, Kemp dealt with financial strain despite his NBA earnings and multiple business ventures.
• Scottie Pippen – Reportedly, Pippen lost almost all of his money to bad investments and a shady agent before his playing career was even over. The six-time NBA champion and Hall of Famer eventually dug his way out of financial burden and exists now comfortably as one of the legends of the Chicago Bulls.

Why Do So Many NBA Stars Go Broke?

The sad truth is that NBA bankruptcies aren’t rare. A 2009 Sports Illustrated study claimed that 60% of NBA players are broke within five years of retirement. With careers that peak in their 20s and end in their 30s, many players face the rest of their lives with no income and no real financial education.

There’s also the issue of “sudden wealth syndrome”, a phenomenon where people who come into big money quickly often make impulsive, ill-informed decisions like playing irresponsibly at US casino sites, for example. Add in taxes, entourages, divorce, and the temptation of risky investments, and it’s a recipe for disaster.

Reasons for Broke NBA Players

• Overspending – Lavish lifestyles, expensive cars, jewelry, and luxury homes can drain fortunes quickly. Many athletes like to show off the bling and keep up with the celebrities they see on social media.
• Bad investments – Risky or poorly advised business ventures often lead to major losses. Even the best-intentioned business ideas can lead to failure if not managed properly.
• Entourages – Supporting large groups of friends and family members can become financially unsustainable for a high-profile, wealthy athlete. Learning to say NO to hangers-on is crucial for NBA stars.
• Divorce – High settlements and alimony payments can take a huge chunk out of an athlete’s wealth.
• Lack of financial literacy – Many NBA players receive little to no education on managing money or long-term planning before entering the league. Or they ignore the free advice that Adam Silver and the NBA offer them.
• Short careers – Professional sports careers are often brief, limiting earning windows to a few years. The average NBA career is three seasons.
• Scams and fraud – Athletes are frequent targets for con artists, shady advisors, and fraudulent schemes. When an athlete has been focusing on business throughout his formative years while he pursues the NBA dream, it’s easy to be fooled by con artists who just want to steal their money on hair-brained ideas.
• Taxes – Mismanagement or misunderstanding of tax obligations can lead to massive debts.
• Child support – Multiple children with different partners can result in overwhelming support payments. Some NBA stars have had more than 10 children from many different women, creating a financial obligation that even the wealthiest athlete can feel strapped under.
• Substance abuse – Addiction problems and drug use can lead to reckless spending and legal issues. Drugs are not cheap, and legal problems from drug issues are costly as well.

Today’s players are savvier: LeBron James, Kevin Durant, and Steph Curry all invest in tech, entertainment, and real estate. Financial literacy programs are now standard across leagues, and veterans like Chris Paul and former stars like Magic Johnson speak openly about budgeting and business.

Still, the stories of broke NBA players serve as a flashing warning sign. Fame is fleeting, and even a max contract won’t protect you from a maxed-out credit line.

The next time an NBA rookie signs a $40 million deal and buys 14 cars, remember: pro basketball has a long list of stars whose fortunes vanished like a missed buzzer-beater. Let’s hope they’ve studied the playbook of those who came—and spent—before them.