Former Dallas Mavericks owner Mark Cuban has seen countless young players enter the NBA, and according to him, one of the biggest challenges had nothing to do with basketball.
Speaking on the Front Office Sports Live show, Cuban revealed that many rookies arrived in the league with little understanding of basic personal finance. From checking accounts to credit cards, he said some players had almost no experience managing money before suddenly becoming millionaires.
“I can’t tell you how many stories I had about players who came to the Mavs who didn’t know what a checking account was, let alone had one.Didn’t understand how credit cards worked. Had no concept of money. I told them, No, don’t spend that money. You’re making $850K, you can’t buy your mom a $5 million house.”
“NIL really made them far more aware of the economics, that’s the good side. The bad side is a lot of shady people who understand these are kids that don’t understand money, maybe from families who are in the same situation, and take advantage of them.”
The example highlights a common misconception surrounding professional athletes. While an $850,000 salary sounds enormous, the reality is much different after federal and state taxes, agent commissions, union dues, and other expenses are deducted. A rookie earning that amount simply cannot afford the type of luxury purchases many people assume come with being an NBA player.
According to Cuban, things have started to change because of the rise of NIL deals in college sports.
Many of today’s rookies have already earned substantial income before reaching the NBA, giving them experience negotiating endorsement deals, paying taxes, and handling business decisions.
That warning has become increasingly relevant as college athletes sign endorsement deals worth hundreds of thousands, and sometimes millions, of dollars before playing a professional game. While NIL has created financial opportunities that previous generations never had, it has also attracted advisors, business partners, and opportunists looking to profit from inexperienced athletes.
Cuban has long been one of the NBA’s strongest advocates for financial education. During his time as Mavericks owner, he frequently emphasized helping players understand long-term wealth rather than short-term spending.
His comments also serve as a reminder that financial literacy remains one of the most important skills for young athletes entering professional sports. A lucrative contract does not automatically create generational wealth. Without careful planning, even multi-million-dollar earnings can disappear quickly.
As NBA salaries continue to climb and NIL money changes the path to the league, Cuban believes education is improving. But his message remains the same. Learning how to manage money is just as important as learning how to play basketball, because earning millions means little if you don’t know how to keep them.
