For NBA Rookies, Financial Literacy Is More Than Scared Straight Stories
Written by SOURCE on September 21, 2021
Between jock taxes, state taxes, local taxes, agent fees, taking care of friends and family, and the effects behaviors now can have on your lifestyle later, it’s a lot to process. That’s precisely why the NBA long ago made financial literacy classes, conducted during the league’s Rookie Transition Program, mandatory.
Overseeing it all is Jamila Wideman, senior vice president of player development at the NBA. The Rookie Transition Program, as the league puts it, was created to “promote the personal, professional, social development, and aspirations of NBA players.” While those in the league’s front office and the players themselves can debate what aspect of RTP matters the most, financial literacy unequivocally sits near the top. The educational sessions are more than just a classroom crash course on how to handle money. Wideman paints them as “a framework for decision making as players get their first checks,” and points out that the curriculum has evolved with the rookies.
“One thing that’s true in all of our programming, we try to pay attention to how the guys coming in change over time,” says Wideman. “As we better understand what skills and capacities they are already coming to the table with, what we’re seeing in many ways is young guys coming into the league—there’s a range—but some guys are savvy and are probably in some ways more prepared than generations ago.”
Which is great. And Carmelo Anthony, who has done pretty well for himself financially during his 18 years in the league, largely agrees.
“I know today’s guys, they have the opportunity to learn before they even come into the NBA,” says the new Laker and future Hall of Famer. “I never had that opportunity.”
Anthony entered the league in 2003, almost two decades ago when the internet was way different and Facesmash, the tasteless precursor to Facebook, was the hot thing for horny Harvard bros to waste time on. Rookies nowadays are savvier compared to a generation or two ago, since just about any question can easily be answered via Google and many already have relationships with pros, often thanks to social media, before they step foot into the league. Plus, tales of shady financial advisers bilking clients out of millions—as happened with Tim Duncan and Kevin Garnett—have been amplified in the media, while stories of players going broke—like Antoine Walker—are, for lack of a better term, legendary.
The perils of losing a fortune have always made for sensational headlines—ESPN did a “30 for 30” on it—and always get the attention of rookies when the league has invited players, like Walker, to relay their horror stories. The retired forward, who spent his best years with the Celtics and has been a regular at RTP over the years, notoriously lost out on over $100 million and has been open about how it happened. Multiple bad decisions, failed real estate deals, an extravagant lifestyle, gambling, and, perhaps most poignantly, an inability to tell people around him “no” made Walker an infamous cautionary tale.
But the league would rather highlight resiliency instead of dwelling on disaster, so the rookies are treated to diverse panels featuring past and present NBA players. CJ McCollum of the Trail Blazers, RJ Hampton of the Magic, Connaughton, and Williams are examples of current players—making very different salaries and with very different experiences—who have relayed lessons they’ve learned, connections they’ve made, and successful strategies they’ve used to make their money grow to the rookies.
“It’s a different approach than ‘don’t do this, don’t do that,’” says Wideman. “Guys coming in now are ready to receive a much more positive story and vantage point and ready to do well.”
