When you sign an eight-figure contract, what really happens to your money? reveals an ex-NBA player who earned $60 million.

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After graduating from Stanford, former NBA player Josh Childress earned more than $60 million over the course of his career. Childress did not experience the financial difficulties as some other athletes have. Childress adds that overestimating their actual pay is a common error made by players. Josh Childress, a former NBA player who graduated from Stanford and has earned more than $60 million over his career, is currently playing professionally in Australia.

Childress was asked how professional players became broke during an interview with Grit Media .

Childress claims that while earning less money now than he did when he was an NBA player, he has been able to sidestep the financial difficulties that some other athletes have had.

Childress, who was selected with the sixth overall pick in the 2004 NBA Draft and signed a four-year, $11.7 million rookie deal, claims that the biggest error players make is overestimating their financial situation.

People make the first error by declaring, “Okay, I’ve got $11 million,” stated Childress. “Over the course of four years, you have five million dollars “after taxes.” As a result, the $1 million house you believed you could afford becomes more expensive. You thought you had $11 million and $10 million more. Most men give their mothers a house, a car, or some other kind of gift. They buy an automobile for themselves. You must pay an agent charge of 2 to 4 percent. The NBA escrow is yours. Therefore, that check is spent.”

According to Childress, the impact of senior players who earn significantly more money is another important element.

Childress said, “Some of my veterans spent a little more than others.” “You grow accustomed to those guys taking you under their wing if that is the case. Therefore, you get caught up in that and wind up spending much more than you should because that is how you perceive the world to be and how you perceive life to be.”

Childress claims that when working in his job, he did get into a similar habit but was able to control his expenditures.
Here is the complete interview, which is worthwhile to watch:
This article was first released in 2015.

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