Joe Smith Explains How He Blew Through His $61 Million Earnings From The NBA 

Joe Smith, the first overall pick in the 1995 NBA Draft, recently gained attention for majorly dropping the ball with his money.

Joe Smith had a remarkable 16-year career that spanned 12 different teams. And in 2011, after a career spanning nearly two decades, Joe Smith bid farewell to the NBA to retire with an impressive $61,000,000 in net worth.

But the recent announcement of his wife Kisha Chavis’s OnlyFans account raised a few red flags on Joe’s financial stability, causing a closer look at his finances which revealed something pretty damn shocking.

He was going broke. 

And to make matters worse, it turns out Joe had no idea about his wife’s OnlyFans account. 

You can hear him saying “That's bulls***. That's f***ed up Kish, I can't believe I am sitting here, just finding out you have got OnlyFans. After all these years” in this video from SHO’NUFF on X.

Most people assume these famous athletes have someone professional managing their money, making sure they don’t lose the fortune they’ve acquired throughout their career. But this commonly isn’t the case.

A lot of celebrities and athletes actually end up blowing through their entire fortune without even realizing it until it’s too late. 

And in a recent interview with DJVlad, Smith disclosed that his $61 million earnings from his NBA career had significantly dwindled down to just $3,000. 

But how did it happen?

From Baller to Broke

A major chunk of Joe’s money came from taxes, agent fees, and management fees, leaving him with around $18 million in the bank. 

Some management team, huh?

But apart from the hefty fees which ironically “managed” Smith’s bank account right into the ground, most of that $43 million he lost was due to taxes.

During an interview with former MLB star Alex Rodriguez on the TV show "Back in the Game" in 2018, Smith expands on how he lost so much just in taxes:

“A lot of people think once you sign that contract, you’re just an automatic millionaire. But it doesn’t work like that. Nobody really explained that out of $3 million, Uncle Sam is going to take probably $1.5 million of that. That was just something I had to learn.”

But another major issue was Joe’s spending habits, buying several luxury cars, houses, and other extravagant expenditures. 

Smith had actually bought several houses as he was traded from team to team, and apparently never thought to rent instead of buy. As a result, he ended up selling the houses for massive losses, adding to his financial nightmare.

In his interview with VladTV, Joe says “It was a very low point. Like, when I say I was in a deep, deep, deep depression, like mentally messed up, I'm telling you I was there."

Smith also blames his costly 2011 divorce with him going broke:

"That's what really cost me. I laugh about it now, but that's what really cost me. The divorce left me with not much at all. That's where a bulk of my retirement money went."

Other Big Names With Bad Spending Habits

Antoine Walker (NBA):

A three-time NBA All-Star, Antoine Walker faced financial troubles after retiring from basketball. Despite earning over $108 million during his career, he declared bankruptcy in 2010 due to extravagant spending and bad investments.

Mike Tyson (Boxing):

Renowned boxer Mike Tyson earned over $300 million during his career but faced significant financial challenges. Lavish spending, legal issues, and poor financial management led to Tyson filing for bankruptcy in 2003. 

Lindsay Lohan (Actress):

Actress Lindsay Lohan, known for her roles in films like "Mean Girls," faced financial difficulties attributed to legal troubles and a lavish lifestyle. Despite earning millions in her acting career, she struggled with debt and legal fees.

Johnny Depp (Actor):

Despite being one of Hollywood's highest-paid actors, Johnny Depp faced financial turmoil. Legal battles, extravagant spending, and failed business ventures led to financial strain, with reports of Depp suing his business managers for mismanagement.

Allen Iverson (NBA):

Former NBA star Allen Iverson, despite earning over $200 million during his career, faced financial challenges. Legal issues, divorce settlements, and a penchant for excessive spending contributed to his financial difficulties post-retirement.

The BMM Takeaway

After taking a look at Smith’s financial nightmare despite such a long and successful career in the NBA, it’s clear that no matter how successful you are, you can still get totally screwed.

So if you’re starting a business, embarking on an entrepreneurial career, or making money online, make sure you don’t mess around with taxes and spending. 

If you’re self-employed, put away 15-20% for taxes. 

Don’t buy stupid stuff.

And maybe just stay away from real estate investing unless you really know what you’re doing. 

In Joe’s case, he bought the houses less as an investment and more as a luxury, not thinking about the potential for losses beforehand.  

There’s also a concept called “lifestyle creep” in which people will spend more as their standard of living improves, but it’s kind of like taking 2 steps forward and 1 step back. 

The more you get, the more you spend, and if you’re not careful you can end up in the negative. This also goes for all those “fake it till’ you make it” types. Maybe don’t buy the Rolex on a credit card if you can’t actually pay for it. 

All in all, just try to take your spending slow. You’re likely not even really thinking about spending at all these days, with rent and groceries being more expensive than open heart surgery. 

But when you do start getting your money up after reading a few Big Money Methods newsletters, remember to think through all of your purchase decisions. 

Except for the 3 AM boneless wings, that will always be a correct financial decision.  

To put it simply:

Don’t neglect your taxes. Don’t mindlessly drop $3,000 into your friend’s “fire business idea”. Don’t gamble. Don’t become an overnight day trader. 

Do keep track out money in VS money out at all times. Do cut back on your unnecessary expenses each month.