Speaking with interviewers from Men’s Health Magazine, professional basketball superstar Dwyane Wade recently divulged the details of his financial history.
In a video lasting over 6 minutes long, Wade sheds important light on the money challenges many NBA players face. These include struggles with gambling, overspending, giving away money, and a failure to plan.
In the same interview, Wade also shared a ton of valuable advice detailing how he has learned from his mistakes.
Wade’s story is not an isolated incident – many professional athletes also struggle with money throughout the entirety of their careers.
This might come as a shock to some, considering the average professional athlete can make millions annually. However, just like the rest of us, athletes still struggle to manage their finances.
Here’s a closer look at Wade’s personal money issues, why basketball players need a financial adviser, and how Wade’s charitable organizations are protected with the help of fund accounting.
Dwyane Wade Speaks Out About Issues With Gambling
Speaking about his financial regrets, Wade divulged the fact that at one time, he had way too many cars. Additionally, he also said he had a bad habit of letting friends use his credit card.
Another major financial regret was his gambling history.
In the full interview, Wade admitted, “I’m not a big gambler. I don’t go to casinos. But when you play sports, it’s like a right of passage that you have to play cards on the plane. It’s a team thing. It’s how we connect, how we bond. And I’ve lost a lot of money on the plane just trying to play with my teammates.”
He continued by saying, “There’s been times when I wanted out because I was losing so much money.”
While Wade never disclosed how much money he lost while gambling with his teammates, it was likely quite a lot. So much so that even his financial adviser even had to call and check on him.
Wade went on to say, “my financial adviser called me and said, ‘Hey, this is something we need to talk about. Do you have a problem?’”
Wade concluded by admitting he is “glad” his gambling problems are over with.
Why Basketball Players Need Professional Help
Many players do not have a financial planner – or even a financial plan – in their first few years as professional basketballers. That’s why it’s critical for them to get with an accountant early on in their career. An accountant or financial adviser can easily help them create a budget, control their spending, and plan for the future.
If they don’t control it early, it can often lead to serious problems later on.
Consider Dennis Rodman. Despite being a five-time NBA Champ with millions in the bank, he still reportedly almost lost everything. Perhaps a financial planner could have helped to prevent a lot of his money-related problems.
What is Fund Accounting? Why Wade’s Nonprofit Foundation is Protected
Unlike Dwyane Wade’s personal finances which got out of hand, his nonprofit foundation’s funds were better-controlled thanks to his accountant.
What is fund accounting? Mostly used by non-profits and government agencies, fund accounting is a system where cash is closely tracked and can only be spent on very specific purposes.
This type of system helped to protect Wade’s charitable organizations from needless spending and splurging.
Money Well Spent: The Wade’s World Foundation
Despite Wade’s bad money decisions, he’s still made a positive impact through his nonprofit foundation, the Wade’s World Foundation.
One of Wade’s charitable organizations, the Wade’s World Foundation, has been super impactful over the years. Founded in 2003, the foundation focused on bringing hope to children in at-risk communities, particularly in inner-city Chicago.
Wade and his foundation have also helped a number of other notable causes across the world.
Some of these projects include:
- Saving the Robins, Illinois public library
- Setting up the “Athletes Relief Fund for Haiti” and
- Participating in the “Hoops for St. Jude” program