"100 million dollars is really not 100 million" - Carmelo Anthony breaks down why professional athletes lose money fast
- Despite signing lucrative contracts in the NBA, many players struggle financially after retirement due to taxes, lifestyle expenses, and lack of financial planning.
Playing in the NBA comes with countless opportunities and perks that "regular folks" often don't even experience. One of the biggest bonuses, without a doubt, is the lucrative contracts. However, despite the mountains of money some players make during their prime, it's not uncommon to see guys just a few years after retirement struggling to make ends meet. No matter how much they earned, when that incredible stream of income stops, reality hits harder than most ever imagined.
Hall of Famer Carmelo Anthony recently shared his perspective on why some players struggle financially once they hang up their sneakers. Spending 19 seasons in the Association, Melo has seen it all, and it is safe to say he knows a thing or two about the problems some of these former stars face.
"A 100 million dollars, that's a 100 million dollars, let's not get that… But it's not really a 100 million dollars… Over a five-year span. You're talking about taking… half the check. So that 10 goes to five over five years. Now, within that five, you've got other taxes that you got to pay," Melo explained in his "7 PM in Brooklyn" podcast.
"Then you got to live. You got to get the house. You are going to take care of your mom. You've got your agency fee. So you got all of this sh-y that's happening…" the retired forward added.
Taxes and luxury eat most of the money
Anthony highlighted something that often gets overlooked. Just because a player signs a 100-million-dollar contract doesn't mean he's actually taking home 100 million. Taxes alone can eat up a huge chunk, and depending on the state, that number varies wildly.
If taxes aren't bad enough, there is an NBA player's lifestyle. The luxurious house, cars, entourage, taking care of your family, it all has a cost. Many young athletes fall into the trap of thinking this money will always keep flowing. They get used to the luxury part. It really feels like being on the mountaintop, but sooner or later it draws to a close.
And as Melo pointed out, when the income stops, reality hits hard. The game doesn't last forever, the average NBA career is around five years, and most players aren't fully prepared for that transition.
Players are not ready for the future outside of the league
That's when the real problem begins. If players spend without planning, don't invest wisely, and don't prepare for life after basketball, nothing remains for the future. Even those who last more than a decade in the league can fall into this trap, assuming that multimillion-dollar contracts and endorsements are forever. And Melo thinks this is the part that often goes under the radar.
"That drastic change of lifestyle f-cks you up mentally. That's the grey area that f-ck a lot of athletes up," he said.
Anthony emphasizes that players have to be modest and honest with themselves. Everything from how much they make, what their aspirations are and how long that income will realistically last. Even superstars aren't immune: we've seen legends like Allen Iverson and Antoine Walker struggle financially despite being among the biggest names in the game. And their story, as well as Anthony's warning, should serve as a cautionary tale to all the hoopers out there.
This story was originally published by Basketball Network on Dec 10, 2025, where it first appeared in the Latest News section. Add Basketball Network as a Preferred Source by clicking here.
