Despite signing multimillion-dollar contracts, many professional athletes find themselves in financial turmoil, grappling with a combination of poor financial literacy, extravagant spending habits, and misplaced trust in advisors.
NFL great Terrell Davis recently shared a horror story about being misled and swindled by an adviser, who was recommended by a friend, who mismanaged his accounts, losing him a lot of money early in his career.
His story is not uncommon, as many athletes come from backgrounds where they’ve never had to manage large sums of money, and without proper guidance, they can fall prey to extravagant lifestyles, risky investments, and even unethical advisors.
The unpredictable nature of sports careers, combined with the pressure to uphold a certain image, often leads to reckless spending, making them vulnerable to financial collapse once their playing days come to an end.
The situation is dire for some athletes, who experience not just hiccups in their investment portfolios but total financial ruin after once basking in the glory of substantial earnings. Here are seven notable professional athletes who faced misfortune after reaching the pinnacle of their careers.
Lawrence Taylor
NFL great Lawrence Taylor earned approximately $50 million throughout his career but ultimately squandered his wealth due to a lifestyle marked by heavy drug use, excessive partying, and ill-advised business ventures.
As reported by Bola VIP, the Hall of Famer admitted to spending $1,000 a day on drugs and escorts for personal indulgence.
Legal and tax troubles only added to his financial woes, eventually pushing him into bankruptcy. Taylor’s story serves as a stark warning for professional athletes about the perils of mismanaging their wealth.
Delonte West
Delonte West, a former NBA star, earned millions during his nine-season career, including a three-year, $12.7 million deal with the Cleveland Cavaliers in 2008.
Then his peers, those who worked with him, agents, family members and even fans, started noticing things changing. However, due to mental health issues, addiction struggles, and financial mismanagement, he lost a career’s earnings of $16 million, with some of his former teammates even stating that he was unsheltered an lived outside of a 7-Eleven, according to The New York Times.
From @TheAthletic: The last time teammates heard from former NBA player Delonte West, he was living outside of a 7-11. People, with means and contacts, have tried to help. Save him, really. Except they can’t buy their way to a solution. Not with this. https://t.co/tB7riB8b5J pic.twitter.com/L003hPFK96
— The New York Times (@nytimes) October 13, 2023
In 2020, former Mavericks owner Mark Cuban tried after finding out that he was begging for money on the streets in Dallas. He not only went to get him but paid for him to go to rehab and secured him housing. Unfortunately, West left Texas and returned to the streets.
Shaquille O’Neal once said that West’s story brought him to tears.
Adrian Peterson
Former NFL running back Adrian Peterson, who earned around $100 million throughout his career, found himself embroiled in financial struggles primarily due to poor money management and multiple lawsuits tied to unpaid debts.
A significant misstep came in 2016 when Peterson took out a $5.2 million business loan to pay off other lenders, signaling deeper financial issues, according to reporting by The Washington Post.
In 2024, a Texas judge ordered him to turn over personal assets to help settle a debt that had ballooned to over $12 million, according to CBS News.
Curt Schilling
During his 20-year career, former MLB pitcher Curt Schilling earned more than $115 million–but lost it all within three years of retirement, according to SportsCasting. Schilling’s financial downfall wasn’t due to lavish spending or gambling but rather a business venture into the video game industry. In 2006, he founded 38 Studios with the goal to create a major gaming company. He invested $50 million of his own money and secured a $75 million loan from the state of Rhode Island. And he lured in other investors who added $5 to $10 million to the venture.
It took six years for the company to drop its first game, “Kingdoms of Amalur: Reckoning.” Although it got positive reviews, it wasn’t enough to keep the company afloat. 38 Studios went bankrupt just a few months later. Schilling was broke and unable to repay the loans.
Dennis Rodman
NBA Hall of Famer Dennis Rodman made history as one of the big men on the Chicago Bulls that held Michael Jordan down in the late 1990s, winning three consecutive NBA championships.
But with such landmark history, the extravagant Rodman seemed to flaunt his wealth to his own chagrin, Yahoo! Sports reports.
Despite making over $27 million in salary alone during his NBA career, he lost much of it due to lavish spending, legal issues, gambling and poor financial management.
That familiar story looked a lot more extreme on him as his Rock & Roll headlines and wild antics, which all led to financial struggles after his basketball career ended, have been splashed across headlines for decades.
Vince Young
NFL quarterback Vince Young earned more than $35 million, including a $26 million contract with the Tennessee Titans.
However, according to Sports Illustrated, poor financial decisions, excessive spending, and inadequate financial advice led him to file for bankruptcy in 2014 — just seven years after landing his biggest contract.
One shocking incident involved Young reportedly spending $15,000 on a single outing at The Cheesecake Factory, and while he acknowledged that extravagant spending, he denied rumors of buying out an entire Southwest Airlines flight to avoid sitting next to anyone.
Despite these struggles, Young has shifted focus towards rebuilding his life, emphasizing financial literacy, and mentoring young athletes to avoid similar pitfalls.
Terrell Owens
Inducted into the Pro Football Hall of Fame in 2018, Terrell Owens earned over $80 million during his career with teams like the 49ers, Eagles, and Cowboys.
One of the stars of the league from the ’90s, 2000s and 2010, his reputation often was not just for his skills on the football field but also for his brash ways, arguing with teammates and even fans, and spending money. Those flashy ways ultimately led him to financial ruin and by 2012, he had just about lost it all, according to an article with GQ.
Today, Owens shares valuable advice, telling “any fan or athlete out there: Just don’t live beyond your means,” according to CNBC.
The experiences of these seven athletes highlight the crucial need for financial literacy and guidance. Their cautionary tales remind current and future athletes that financial success comes not only from earning money but also from wise management to avoid ruin.