Josh Childress

Ex-NBA player who made $60 million explains what really happens to your money when you sign an 8-figure contract

Josh Childress

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  • Josh Childress is a former NBA player who has earned over $60 million in his career since graduating from Stanford.

  • Childress avoided the financial problems that some other athletes have faced.

  • Childress explains that the big mistake players make is how much they actually get paid.

Former NBA player Josh Childress, who earned over $60 million in his career since graduating from Stanford, is now playing professionally in Australia.

During an interview with Grit Media, Childress was asked how professional athletes break down.

Even though he’s making less money now than he used to playing in the NBA, Childress says he’s been able to avoid the financial problems some other athletes have faced.

Childress, who was the sixth pick of the 2004 NBA Draft and signed to a four-year rookie contract worth $11.7 million, says the first mistake athletes make is how much money they have.

“The first mistake is, people say, ‘Well, I have $11 million,'” Childress said. “You have five [million dollars after taxes] more than four years. So that million-dollar house that you thought you had $11 million, that you had $10 million more, that house then becomes more expensive. Most people buy their mother a house or a car or something. They buy themselves a car. You have a 2 to 4% agent fee. You’ve got NBA escrow. So that he eats the check.”

Childress says another big factor is the influence of experienced players who make a lot of money.

“Some of my veterans cost a little more than others,” Childress explained. “If those people are taking you under their wings, you get used to it. So you think that’s how it should be, and that’s how you think life is, and you get caught up in it, and You end up spending more than you need to.”

Childress says he fell into a similar pattern early in his career, but was able to keep his spending under control.

Here is the interview, which is worth watching in full:

This post was originally published in 2015.

Read the original article on Insider

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