How This NBA All-Star Made And Lost A $100 Million Fortune Before His 40th Birthday

Perhaps the biggest blessing of being an NBA All-Star is the opportunity to earn millions of dollars at a very young age. However, that blessing can also be a curse, something that former NBA all-star Antoine Walker can attest to. He earned over $100 million and won an NBA championship. Unfortunately, disastrous financial decisions cost him his entire fortune and led him to file for bankruptcy.

Trending Now:

• Invest like a CEO. The total net worth of these five entrepreneurs is $223 billion – they all believe in one company where you can lend money to companies at 7-9% APY.
• Investing in private credit could potentially unlock APY up to 20%, with benefits like shorter term durations and diversified returns – Find out more if you're an accredited investor.

Antoine Walker may not be a household name among today's younger NBA fans, but in the late 1990s and early 2000s, he was one of the best basketball players. He stood an imposing 6'8" tall and had incredible court vision with almost unlimited range on his jump shot. Scouts referred to Walker as a "walking mismatch" because his combination of size and skill made him almost impossible to defend.

A Bright Beginning and Lucrative Contract Extension

Walker grew up in Chicago, where he remains a hoops legend. His unusual combination of size and skill made him one of the most highly sought-after recruits in the country. He earned a scholarship to play college basketball at the University of Kentucky and led the Wildcats to the 1996 NCAA Championship. The Boston Celtics picked him with the sixth pick in the NBA draft, making him a millionaire overnight. 

Walker played very well for the Celtics and became an all-star in his second season, averaging 22 points and 10 rebounds per game. His three-year rookie contract paid an average of $1.8 million per year. Walker followed that up by signing a massive six-year, $70 million contract, with an average annual value of $11.8 million, which ran from 1999 to 2004.

His last contract with Boston was worth $31 million over four years, with a $7.9 million average salary. The Celtics traded Walker to the Dallas Mavericks, and he continued to put up solid numbers before eventually landing with the Miami Heat. Walker was a valuable member of the Heat's first NBA championship team in 2005-06. All the while, Walker's contract, guaranteed under NBA labor rules, continued paying very handsomely.

Walker Was Unprepared for Retirement

Walker spent his final years in the NBA as a well-paid journeyman. He retired after the 2008-09 season with $108 million in career earnings – more than enough to be set for life. Unfortunately, Walker had a penchant for the high life, a gambling addiction, and what he recalls as an inability to say "no" to family members when they asked him for money.

Although he did try to make some investments, they were ill-advised, and nothing could keep up with his spending. He owned lavish homes in multiple cities, a fleet of expensive cars, and custom jewelry. He was notorious for trying to "one-up" anyone regarding spending. If a teammate or famous friend of Walker's bought a new car or house, he would immediately get a bigger one.

As Walker soon discovered, this kind of spending without investing is unsustainable, and even a $100 million fortune can be whittled down with blinding speed. By 2012, Antoine Walker was tapped out and had no choice but to file for bankruptcy. Despite earning over $100 million during his 12-year NBA career, Walker was broke less than five years after retirement. His wealth didn't even last through his 40th birthday.

Check It Out:

• Whole Foods' landlord has delivered a 15% net IRR for its investors since 2015. Check out the latest investment opportunities added to its platform.
• This asset class has outpaced the S&P 500 by 131% over the last 26 years. Uncover the secret.

Walker Faces the Inevitable

Walker's bankruptcy remains one of the most infamous cautionary tales about the danger of overspending and failing to prepare for retirement. Thankfully, he's managed to find his footing financially and he now works to help young athletes avoid the mistakes he made. Since 2015, Walker has worked with former NFL All-Star Linebacker Bart Scott at Morgan Stanley's Global Sports and Entertainment Division.

In an interview with HoopsHype, Walker took full accountability for his troubles when he said, "When I went through my financial difficulties and ultimately filed for bankruptcy in 2012, I really got a chance to see all of the mistakes that I made."

Antoine Walker Today

Walker now welcomes the opportunity to provide meaningful guidance. "I indulged and I was uneducated, which is what led to being bankrupt. When I went through all of that, I learned a lot and I wanted to turn my negative story into a positive story by helping others avoid the mistakes I made," Walker continued. It takes enormous fortitude to go through what Walker has experienced and be open about it.

Although he earned and lost an enormous amount of money, Walker's advice about investing and planning for the future is as useful to everyday people as it is to young NBA players. The good news is that investing is easier than ever, and like Walker said, it's never too early to begin thinking about tomorrow.  

A 9% Return In Just 3 Months

EquityMultiple's ‘Alpine Note — Basecamp Series' is turning heads and opening wallets. This short-term note investment offers investors a 9% rate of return (APY) with just a 3 month term and $5K minimum. The Basecamp rate is at a significant spread to t-bills. This healthy rate of return won't last long. With the Fed poised to cut interest rates in the near future, now could be the time to lock in a favorable rate of return with a flexible, relatively liquid investment option. 

What's more, Alpine Note — Basecamp can be rolled into another Alpine Note for compounding returns, or into another of EquityMultiple's rigorously vetted real estate investments, which also carry a minimum investment of just $5K. Basecamp is exclusively open to new investors on the EquityMultiple platform.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.