What do NBA Players do With Their Money?

Whether you believe NBA players are overpaid or not, few can deny the fact that these athletes are paid handsomely for playing the game of basketball.  With the average NBA player salary hovering at $7.5 million annually, NBA players are some of the most well compensated professional athletes in the world.

However, with such large salaries, what exactly do NBA players do with their money?  Below, we are going to look at and discuss the different avenues in which NBA players spend their money. 

And while many of these sums may appear extravagant to the average reader, it is important to remember that for players in the NBA, they are often guaranteed several millions of dollars for the life of their contracts, allowing them to spend a bit more lavishly than you and I.

Sources of Revenue for NBA Players

While the main source of revenue and income for most NBA players is from the NBA team they are signed with, many NBA players are also paid handsomely from sponsorship and endorsement deals.  This can include sponsorship deals with shoe brands, clothing brands, car brands, and even financial and crypto institutions.

For these brands and institutions, having an endorsement from an NBA player can significantly raise their profiles and attract new users and consumers.  And for many of these brands and institutions, paying an NBA player several millions of dollars is worth the initial investment to attract new users and consumers to their products, services, and offerings.

A few examples of some current sponsorship and endorsement deals NBA players are signed to include:

• LeBron James signed with Kia to endorse their cars for an estimated $45 million per year.

• Stephen Curry signed a deal with Under Armor for an estimated $44 million per year.

• Kevin Durant is signed with Alaska Airlines for an undisclosed sum.

• Chris Paul is signed with State Farm insurance for an estimated $8 million per year.

• James Harden is signed with Adidas for an estimated $200 million over 13 years.

Why Are NBA Players Paid so Much?

A common question and refrain we hear from so many of our readers is, why exactly are NBA players paid so much?  And while a genuine question, it is important to understand the question in two separate parts.  Looking firstly from an NBA team’s perspective, the ultimate goal is to win an NBA Finals championship.

By winning an NBA championship, NBA teams are able to not only sell more tickets and garner additional revenue, but those teams will also be awarded additional funds from a playoff pool which is doled out to all the teams which reached the playoffs.

In addition, for an NBA team which is able to secure an NBA championship, the overall market value of their team franchise and arena will increase significantly.  For team owners, the value of their team is where the real money lies.  And by signing elite players and superstars and winning an NBA championship, those team owners are able to increase the overall value of their team ownership.

And from a brand and sponsor perspective, NBA players are some of the most looked up to and best influencers in the world.  By signing a major NBA player, these brands are better able to attract new users, consumers, and shoppers to their brand, increasing their overall revenue and profits.

And although these brands and sponsors will pay several millions of dollars to secure an endorsement from an NBA player, the ROI or return on investment, will net them several millions of dollars more than what they had originally paid for the endorsement.

As the NBA is, ultimately, a business and one that operates to make a profit, so too are the brands and sponsors who seek endorsements from specific NBA players.  And by signing and securing an endorsement from an NBA player, these brands and sponsors are better able to market their product and services to the general public.

Where do NBA Players Spend Their Money?

Understanding the above, the question still remains, what do NBA players do with their money?  And while the question can be challenging to answer, as every player is different and has different needs and priorities, the bulk of players spend their money on the following.

• Homes and Real Estate – perhaps one of the most important and significant sources of money spent for an NBA player is none other than homes and real estate.  Real estate has been one of the best investments in recent years and with several millions of dollars, NBA players are able to purchase and acquire real estate across the country as a source of passive income.

• Cars – NBA players love cars.  From Paul George’s Ferrari 458 Italia Spyder to Miles Bridges’ Range Rover to Kevin Durant’s Mercedes SLS AMG, NBA players have been known to spend a pretty penny on luxury cars and vehicles.  And while most NBA players will have few opportunities to drive those vehicles throughout the season, they are often used excessively during the offseason.

• Clothes – as with cars, NBA players love their clothes.  Often seen donning unique and outlandish outfits, NBA players are keen to keep up their appearance and will often shop from luxury consignments such as Louis Vuitton, Gucci, Fendi, and Burberry.

• Jewelry and Watches – similarly, many NBA players will spend a significant sum on jewelry and watches.  From monogramed pendants worn by James Harden to luxury watches worn by Stephen Curry, jewelry and watches are a major accessory for many NBA players.

• Charity and Charitable Organizations – and while many NBA players will spend their money on clothes, cars, and real estate, many more will also work on and give to charitable projects and charitable organizations.  A means to give back and show gratitude for their positions in life, NBA players are often some of the most giving of all professional athletes.

• Businesses and Side Projects – many NBA players also understand that their time in the league is limited.  As such, during their time in the league, they will start several businesses and side-projects to help them maintain a source of income for when they do retire.  These businesses can include opening chains of Papa John’s pizza stores, as Shaquille O’Neal has done to Michael Jordan’s taking a stake in the ownership of the Charlotte Hornets.