How Did a $91 Million NBA Star End Up Bankrupt Just Years After Retiring?.
Derrick Coleman was the No. 1 overall pick in the 1990 NBA Draft by the New Jersey Nets, coming off a stellar career at Syracuse University where his jersey No. 44 was later retired. He quickly made an impact, winning Rookie of the Year in 1991 and earning an All-Star selection in 1994. Over his 15-year NBA career with the Nets, 76ers, Hornets, and Pistons, Coleman averaged 16.5 points and 9.3 rebounds per game, establishing himself as a talented power forward.
His career earnings totaled around $87–91 million in salary (sources vary slightly, with some citing $87 million in 2010 reports and others up to $91.3 million including later adjustments). Despite this wealth, Coleman filed for Chapter 7 bankruptcy in 2010, about five years after retiring in 2005. Court filings showed $4.7 million in debts against roughly $1 million in assets.
The primary cause was ambitious but ill-timed investments in his hometown of Detroit. Coleman aimed to revitalize struggling neighborhoods through real estate development, including a project called "Coleman's Corner," stakes in a Hilton Garden Inn hotel, a Tim Hortons franchise, and a Hungry Howie's Pizza store. His attorney stated these efforts focused on "developing real estate, creating jobs, and revitalizing business opportunities," but the 2008–2009 economic recession—particularly harsh on Detroit's real estate market—wiped out the investments.Major debts included $1.3 million from a Comerica Bank lawsuit and $1 million from a mortgage loan, plus $50,000 owed to Detroit mayor (and fellow Syracuse alum) Dave Bing. Assets liquidated included classic cars (like a 1997 Bentley), watercraft, and even chinchilla fur coats. Fortunately, his ~$90,000 annual NBA pension was protected.
Coleman's case stands out because it wasn't purely lavish spending (though lifestyle maintenance played a role)—it stemmed from a genuine attempt to give back to a struggling community during a severe downturn. It's a common pitfall for retired athletes: studies (e.g., a widely cited 2009 report) estimate 60% of NBA players go broke within five years of retirement, often due to short careers, poor financial planning, bad investments, or supporting large entourages/family.
Post-bankruptcy, Coleman showed resilience. In 2015, he returned to Syracuse University to complete his degree (in social studies or a related field), fulfilling a promise to his late mother. He's also been involved in community efforts, like delivering water during the Flint crisis and running youth basketball programs.His story is a cautionary tale about financial management for high earners, but also one of redemption through community focus and personal growth. Many former players face similar challenges, underscoring the need for better financial education in pro sports.
His career earnings totaled around $87–91 million in salary (sources vary slightly, with some citing $87 million in 2010 reports and others up to $91.3 million including later adjustments). Despite this wealth, Coleman filed for Chapter 7 bankruptcy in 2010, about five years after retiring in 2005. Court filings showed $4.7 million in debts against roughly $1 million in assets.
The primary cause was ambitious but ill-timed investments in his hometown of Detroit. Coleman aimed to revitalize struggling neighborhoods through real estate development, including a project called "Coleman's Corner," stakes in a Hilton Garden Inn hotel, a Tim Hortons franchise, and a Hungry Howie's Pizza store. His attorney stated these efforts focused on "developing real estate, creating jobs, and revitalizing business opportunities," but the 2008–2009 economic recession—particularly harsh on Detroit's real estate market—wiped out the investments.Major debts included $1.3 million from a Comerica Bank lawsuit and $1 million from a mortgage loan, plus $50,000 owed to Detroit mayor (and fellow Syracuse alum) Dave Bing. Assets liquidated included classic cars (like a 1997 Bentley), watercraft, and even chinchilla fur coats. Fortunately, his ~$90,000 annual NBA pension was protected.
Coleman's case stands out because it wasn't purely lavish spending (though lifestyle maintenance played a role)—it stemmed from a genuine attempt to give back to a struggling community during a severe downturn. It's a common pitfall for retired athletes: studies (e.g., a widely cited 2009 report) estimate 60% of NBA players go broke within five years of retirement, often due to short careers, poor financial planning, bad investments, or supporting large entourages/family.
Post-bankruptcy, Coleman showed resilience. In 2015, he returned to Syracuse University to complete his degree (in social studies or a related field), fulfilling a promise to his late mother. He's also been involved in community efforts, like delivering water during the Flint crisis and running youth basketball programs.His story is a cautionary tale about financial management for high earners, but also one of redemption through community focus and personal growth. Many former players face similar challenges, underscoring the need for better financial education in pro sports.
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