I've never understood why teams don't insist on putting a reasonable chunk of change right off the top into a lockbox that would pay former players a reasonable stipend. If 60% of the players in fact do go broke, one would think both the league and the players union would insist on it. It should be part of the standard contract.
Not that I expect the NBA to ever do the right thing.
RE: I’ve never understood why teams don’t insist on putting a reasonable chunk of change right off the top into a lockbox that would pay former players a reasonable stipend.
If the NBA did that and operated like Uncle Sam, that money will be spent for current league expenses and the lockbox will be filled with IOUs, with part of the salaries of current players taken to pay for retired former players.
The old USFL offered big money contracts to lure players away from the NFL. They didn't have the money to back it up so they paid in annuities.