It's no secret that former NBA All-Star and Champion, Antoine Walker, earned well over $100 million throughout his NBA career.
It's also no secret that Antoine lost it all and went broke.
Antoine's financial problems began as a 19-year-old rookie with the Boston Celtics in 1996, and although he had a financial adviser plan for his long-term finances, Antoine had other ideas for his new found wealth.
A sad story we often hear on our TV show, 'From Glory Days' and a lesson to be learned for anyone looking to gain and maintain their wealth.
Why do so many professional athletes go broke?
As I analyze the case of Antoine Walker and many others, these are the three reasons I find for professional athletes' financial demise.
Reason #1 - Ignoring Financial Wisdom
“Through my young arrogance, being ignorant...and being stubborn with my money,” Antoine has said publicly. Pro athlete or not, advice is only as good as it is heeded, especially in an area that is not our expertise. Antoine's expertise was as a professional athlete. That's what paid him well, and he didn't heed the expert's advice and took his business and finance matters into his own hands. Mistake number one.
Reason #2 - Skewed Reality on Money
“I never really thought about the (financial) severity that I put myself through, but I didn’t really worry about it because the money was constantly coming in,” Antoine shared. Often athletes feel invincible, and as a former professional athlete myself, I get it. You think the playing will never stop and the money will never end. 100% focused on current status, and little to no thought placed on how current decisions will impact the future, especially financially. Did Antoine really need that many designer suits or five luxury vehicles in the driveway of every one of his homes? No more than former boxer Mike Tyson needed white tigers while losing $300 million earned during his boxing career.
Reason #3 - Losing Control of Your Money
“I could have been on top of it,” Antoine said when talking about what lead to the loss of his wealth and investments. Gambling, blowing wads of money on lavish trips with friends and acquaintances, and not paying attention to important court appearances tied to his 140 investment properties...these were the actions that lead to Antoine's loss of control.
Eventually, the reality of $13 million in liabilities and $4 million in assets forced Antoine to declare bankruptcy, and he had to liquidate many of his priceless possessions including an NBA Championship ring.
Looking back, Antoine has many regrets, as most former athletes do that find themselves in this position, but the good news is Antoine is trying to turn this tragedy into a triumph by getting the word out to others about his mistakes.
Focusing on the importance of financial literacy and hoping others can learn from his mistakes, Antoine has released a documentary titled, "Gone In An Instant" which documents his rise and fall.
When asked what his #1 piece of advice would be to young NBA players today, Antoine said, “Get the word ‘No’ in your vocabulary. You’re going to have to say no to a lot of people that are very important to you. Stick to your financial plan and don’t invest until you’re done with your career when you’re able to be hands-on.”
Advice too late for Antoine Walker to heed, but great words of wisdom in hopes of sharing the secret to his financial demise.
You can find out more about me, my book, my TV show, and the important work I do with former professional athletes at: www.kurtdavid.com
