The NBA Draft is tomorrow night and for all the young men who will be drafted, tomorrow night is the culmination of a lifelong dream. On the outside we hear how these players are set for life and how they will be able to take care of themselves and their families with the financial “security” of their rookie contracts. That is because if you are drafted in the first 30 picks of the draft you will be signing a three year guaranteed contract worth between $3 million and $12 million.
However, after digging into it you realize that this dream is not all that it seems. In 2009 Sports Illustrated found that 60% of NBA players are bankrupt within five years of retirement. If those statistics hold that means that 18 of the 30 1st round picks will have nothing to show for the millions they have made! Most of us hear those stats and wonder how that can possibly be. The answer is simple; if you don’t manage your money well it will disappear. This applies no matter how much money you make.
With those kinds of numbers a lot of us claim that there is no way we could blow that much money. But is that really the case? Chances are that if you work the average amount of time you will earn well over a $1 million in your lifetime. Yet statistics and my experience tell me that most us have mismanaged our money and have little to show for all our hard work. So if you are checking out the NBA draft tomorrow night, remember that these athletes have the potential to be set for life, but it all depends on how well they handle that money.