Sports Stars: From Homebuyers to Renters?
NBA star Kevin Martin (pictured left), who was traded by the Sacramento Kings to the Houston Rockets in February, just received a notice of default on his California home, even though he is set to earn at least $10 million this year.
The Rockets guard, who missed his first payment on the $1.5 million loan in June, according to Foreclosures.com, is just one of many athletes who have lost on real estate due to either bad investments, or their frequent relocation.
In the past year or so, former NBA forwards Antoine Walker and Derrick Coleman, who earned nearly $200 million combined in their long basketball careers, filed for bankruptcy. Bad real estate deals were largely to blame, reported AOL News. Coleman, who made more than $87 million playing basketball, picked a bad time to invest in Detroit real estate.
"Chronic overallocation into real estate" is the top reason professional athletes go broke, according to Sports Illustrated. Within five years of retirement, an estimated 60 percent of former NBA players are broke.