60% of players go bankrupt within five years of retirement! Stockton explains in detail: sudden wealth brings a host of problems.

On August 21, Beijing time, Stockton—an iconic star of the Utah Jazz—played for the team for 19 consecutive seasons and still holds the NBA’s seemingly unbreakable records for assists (15,806) and steals (3,265). Recently, however, the former star made headlines for another reason: he spoke candidly about the financial crises many NBA players face after retiring.

“When the amount of money is that large, it doesn’t take much for things to go wrong,” Stockton said on a podcast.

“If you miss your taxes for even one year, the penalties and interest can eat up your money instantly. Then you get married and divorced—your assets are cut in half. You buy things that don’t hold their value, like a bunch of cars or jewelry. Suddenly, all sorts of problems appear.”

He added, “And to pay off these kinds of debts? It’s basically impossible. If you’re no longer making $50 million a year, you can’t just return to a normal life and cover those fines. It happens much more easily than you’d think. That’s exactly why you need to stay sharp and pay close attention.”

Stockton also pointed out the cultural pressures players face after coming into wealth. He explained that many players come from poor backgrounds, and once they have money, they immediately spend lavishly to support parents, siblings, and lifelong friends. Cars, homes, private school tuition, jewelry, and clothes quickly drain what initially seemed like endless funds.

Statistics back up Stockton’s concerns. According to CNBC, 78% of NFL players face financial hardship just two years after retiring. The numbers for the NBA are a bit better, but still troubling: 60% of former players go bankrupt within five years of leaving the league.

Former Knicks center Chris Dudley, now a senior wealth planner, added, “Players need to understand that one year of high income often has to support sixty years of living. Sustainable spending and a manageable lifestyle are absolutely crucial.”