It’s not uncommon to hear stories of athletes who go from rags to riches, only to find themselves struggling with financial difficulties later on. Joe Smith, a former NBA player who had a career spanning 16 seasons and played for 12 teams, is a prime example of this unfortunate trend. Despite earning a staggering $61 million throughout his career, Smith shockingly found himself left with just $3,000 after retirement.
Former NBA Player Joe Smith’s Financial Downfall: From $61 Million to $3,000
Smith’s journey in the NBA took him to various teams, including the Golden State Warriors, Minnesota Timberwolves, LA Lakers, Milwaukee Bucks, Denver Nuggets, Chicago Bulls, and Philadelphia 76ers. However, his financial troubles began to mount even before his retirement. After agent fees, taxes, and other deductions, Smith was left with approximately $18 million in his pocket, a sum that would have set most people up for life.
One of Smith’s major financial missteps was his penchant for buying houses in every city he played for. While this may have seemed like a wise investment at the time, offloading these properties when it was time to move on proved to be a significant blow to his finances. Additionally, Smith indulged in an extravagant lifestyle, owning luxury vehicles such as a Corvette and a Bentley. The combination of lavish spending and mismanagement of assets quickly depleted his wealth.
In a recent interview with Vlad TV, Smith opened up about his dire financial situation. He admitted to having only $3,000 to his name a few years into retirement. Furthermore, he found himself burdened with debts totaling approximately $157,000. The weight of these financial struggles took a toll on Smith’s mental health, plunging him into a deep state of depression: “it’s a very low point. When I say I was in a deep, deep depression, like mentally messed up? I’m telling you, I was there.”
In an attempt to recover from his financial crisis, Smith resorted to holding basketball clinics for long hours each day. However, the income generated from these clinics fell far short of what he and his then-fiancée, Kisha Chavis, had been accustomed to spending. Smith’s story serves as a stark reminder that even high-earning athletes can face financial ruin if they fail to exercise fiscal discipline and make sound investment choices.
Back in 2018, Smith was featured on CNBC’s show called “Back in the Game,” where baseball legend Alex Rodriguez helped him navigate his financial troubles. Although Smith had earned more money than most people could dream of, his lack of financial literacy and overspending ultimately led to his downfall.
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While Smith’s story is undoubtedly a sobering one, it also serves as a reminder that it’s never too late to turn things around and learn from past mistakes. In the end, Smith’s experience serves as a valuable lesson for all, emphasizing the importance of financial responsibility and wise decision-making, regardless of one’s income level or profession.