Darius Miles Files For Bankruptcy After Making $66 Million In The NBA
Former East St. Louis Flyers basketball standout Darius Miles was a first-round draft pick with the Los Angeles Clippers in the 2000 NBA draft with a contract worth $9 million. He starred in a movie with Scarlett Johansson and Ryan Reynolds. He landed an endorsement with Michael Jordan’s athletic brand.
Miles is 34 now. It’s been 16 years since the 6-foot-9 forward was drafted by the L.A. Clippers right out of East St. Louis High School.
But injuries, legal problems and bad investments have left Miles asking the court to allow him to sell off his assets to pay creditors. Miles listed $460,385 in assets and $1.57 million in liabilities.
Miles listed a $20,000 child support debt in his bankruptcy. He lost more than $100,000 in 2008 in a California real estate deal. Another real estate deal — with fellow investors former NFL Rams player Marshall Faulk and rapper Nelly — was mired in lawsuits over a Laclede’s Landing property. Newspaper stories wrote about Miles rewarding himself with diamond jewelry.
Potential players should have an agent to handle business affairs, an accountant to handle the taxes, a financial consultant to handle investments and an attorney to review contracts, Foyle said. Players should also find an unpaid mentor. LeBron James, a friend of Miles, has Warren Buffett. Foyle turns to his dad, an economist.
So, how much debt exactly does Miles have?
The accountant is paramount, Foyle said, because of the “jock tax.” Professional athletes must pay state income taxes in every state where they play away games. An accountant experienced with professional athletes can save a player a fortune in penalties and late fees. Miles listed a $282,041 debt to the Internal Revenue Service. He also said that most of his debts aren’t consumer debts, but business debts. Miles owns a single-family home in Belleville with a value of $241,000. His car is a 2011 Chevrolet Camaro, valued at $20,000.
In addition to his Belleville home, he listed 12 other properties he owns, all in East St. Louis. He has a Deutsche Bank account with $49,000 and his son’s college fund with $84,900. He also listed ownership of various collectibles with unknown value, including trophies and signed jerseys, and jewelry.
Read the entire article HERE. Ballers need to get more financially literate!