Charles Barkley reveals why almost 80% of professional athletes go bankrupt after retirement – how to avoid their mistakes
Charles Barkley may have earned the nickname “Bread Truck” for raking in millions of dollars – but he wasn’t always a pro when it came to managing his NBA earnings.
“At first I was an idiot when I got my money,” Barkley said on the Club Shay Shay podcast hosted by former NFL tight end Shannon Sharpe.
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Barkley recalled that he owned three or four cars at the time, but NBA icon and mentor Julius “Dr. J” Irving warned him against spending extravagantly, wondering how many of those cars he could drive at the same time.
“(Dr. J) said, ‘Chuck, this money should last you the rest of your life,'” Barkley said. “Everyone knows who you are. You pull up in a Kia, they know it’s Charles Barkley. You arrive in a Mercedes Benz or a Rolls Royce, it’s Charles Barkley.
Experts say majority of professional athletes go bankrupt
A staggering 78% of professional athletes go bankrupt after just three years of retirement, NKSFB Sports Business Division Partner Craig Brown told FOX Business’ “Mornings with Maria” in 2022.
Barkley references this statistic on the Club Shay Shay podcast, emphasizing the importance of having money as you age.
“I don’t mind a little ice, but too much ice,” Barkley said, calling on young athletes to splurge on Dior shoes and Louis Vuitton shirts. “They know the money won’t last forever, right?”
Sharpe agreed. “I don’t want to be poor – I’ve been poor,” he said. “I know what it’s like to eat raccoon, opossum, sardines, wieners, pig ears, pig tails, pig feet – I don’t want to eat that anymore, Chuck, unless I want to.”
But Sharpe also noted that many athletes from low-income backgrounds view their winnings as the first opportunity to show they’ve “made it.” The underlying problem is that many of them are not prepared to receive a large sum of money in a relatively short period of time and are not prepared to manage it wisely.
In addition to spending lavishly on themselves, Barkley added, many professional athletes are asked to spend their earnings on friends and family members. He said he learned “a difficult and painful lesson” when he first started saying no to people.
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How to Avoid These Wealth-Killing Mistakes (Even If You’re Not Playing Ball)
Experts say it’s extremely important to start investing early to truly take advantage of the power of compound interest.
Even if you’re not a professional athlete, you could save for once you leave the workforce and enter your golden years, starting a new business or making a major purchase (like your first home ).
It may also be helpful to speak to a financial advisor who is trained in wealth management and can help you achieve your financial goals.
Irving advised Barkley to think about his future instead of trying to impress others.
“‘The problem isn’t the fact that you can’t afford that car, it’s the fact that the $300,000 you spent on that Bentley, if you had bought a car for $70,000 , $80,000, you would have had $200,000 more in the bank and it would have grown and grown,” Barkley remembers Irving telling him.
“’And in a year, three years, five years, twenty years, that $200,000 will be worth a lot more.’”
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This article provides information only and should not be considered advice. It is provided without warranty of any kind.
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