How do NBA Players Make Money?

It’s a well-known fact that NBA players are some of the highest paid athletes in the world. With many NBA players grossing millions of dollars annually from their respective team contracts, famous NBA players can reach tens and hundreds of millions of dollars in annual revenue per year.

But just how do these NBA player make so much money, particularly when the highest paid NBA player in the 2021-22 NBA season, Stephen Curry, has a salary of just over $45.7 million?

Below, we are going to look at and discuss just how do NBA players make money. In particular, we will be looking at additional revenue streams available for NBA players and additional ways in which they are able to maximize on their earnings potential.

Who Are the Highest Paid NBA Players in the League?

As stated above, NBA players are some of the highest paid athletes in the world. With the average NBA salary standing in at $7.5 million for the 2021-22 season, these athletes are paid handsomely for their work and their athletic abilities.

However, although the average salary stands in at just over $7.5 million, there remains wide variances between the highest and lowest paid NBA players. Below are some of the highest paid NBA players for the current season.

• Steph Curry – with an annual salary of $45,780,966, Stephen Curry is the highest paid NBA player in the league, and for good reason. A 3-time NBA champion and 2-time NBA Most Valuable Player, Stephen Curry has led the Golden State Warriors to multiple NBA Finals appearances and was instrumental in the team’s record setting 73-9 win-loss record in the 2015-16 season.

• James Harden – the former Brooklyn Net was traded to the Philadelphia 76ers midway through the season and continues to play an instrumental role in the team’s success. James Harden has a current salary of $44,310,840 and is making a significant push to the NBA Finals behind Joel Embiid.

• John Wall – perhaps a surprise to many, John Wall’s $44,310,840 annual salary comes in as the third highest in the league. But John Wall is seen as the face and future of the Houston Rockets. A native of Raleigh, North Carolina, Wall was selected first overall by the Washington Wizards in the 2010 NBA draft after playing just one year of college basketball for the Kentucky Wildcats.

• Russell Westbrook – while we normally make lists in threes, we felt compelled to include Russell Westbrook’s annual salary with the Los Angeles Lakers here. Russell Westbrook is signed to make $44,211,146 and is the fourth highest paid NBA player in the league. However, as many Lakers fans will attest to, his performance this season has many questioning whether or not the Lakers overpaid for the former MVP.

Why do NBA Players Try to Maximize Their Earnings?

While it would be understandable for an NBA player to be satisfied with their current earnings and annual salary, considering the many millions of dollars they make per season, most NBA players do, in fact, look to maximize and capitalize on those earnings potential.

And while, for many of us, such levels of wealth are inconceivable, for basketball and NBA players, that wealth and high-earnings potential is limited in scope and sphere. For most NBA players, their earnings potential is directly tied to their time in the league and many of them find it difficult to find suitable work once they retire.

In addition, for many NBA players, living the typical NBA lifestyle can be costly. From luxury homes and cars to excessive jewelry and diamond pieces. The lifestyle of an NBA player can cost several millions of dollars per year and many NBA players end up near bankruptcy towards the end of their careers.

Additional Ways NBA Players Make Money

In consideration of the above, it’s important for an NBA player to maximize their earnings potential while in the league. And while some of these options are only available to superstar players, many NBA players will look to additional revenue streams to support their lavish lifestyles and future comfort.

• Sponsorship Deals – perhaps the most popular route for an NBA player to make additional money is to sign a sponsorship deal. A sponsorship deal is a deal between an NBA player and a well-known, established corporate brand. These sponsorship deals are typically done between NBA players and global sneaker brands, such-as Nike, Adidas, Under Armour, and Reebok.

• Video Game Likeness – in addition to sponsorship deals, most NBA players will opt into their video game likeness. With such popular basketball games like NBA2K, NBA players will be paid a percentage of the total compensation received to the NBA Players Association, which is estimated to be in excess of $1.1 billion.

• Book Deals –another great way that NBA players will utilize their name and fame is to write a book detailing their lives and their path to the NBA. These books often feature honest, transparent accounts on their lives and are popular amongst avid and casual basketball fans alike.

• Start a Basketball Camp – while there are plenty of basketball camps, few can attract basketball players from across the world like one’s run by a current or former NBA player. These players bring first-hand experience from playing in the best league in the world and often offer a hands-on experience.

• Purchase a Franchise – and lastly, many NBA players will invest their earnings from their time in the league in well-known and reputable franchises. While these players typically outsource the management and day-to-day operations to a trusted colleague or friend, they are able to collect a monthly paycheck from their investment.