Garnished wages, multiple lawsuits, predatory loans, and an NBA gambling investigation
Malik Beasley just enjoyed the best season of his NBA career. A player who had made roughly $60 million in his career parlayed a $6 million one-year deal into one of the league’s best 3-point seasons and was poised to sign a long-term deal from the Detroit Pistons that would see him make more than $40 million over the next three seasons.
All of that was put on hold when it was revealed Beasley was the subject of a federal investigation related to gambling and prop bets on NBA games.
A new investigation from the Detroit News shows that Beasley’s troubles somehow run much deeper than just a federal investigation, and the details are sad for a player who was playing with perhaps the most joy in the NBA.
Beasley, it turns out, is subject to multiple lawsuits for unpaid labor and breach of contract. His NBA paycheck is reportedly being garnished due to unpaid bills at a dentist. He also allegedly owes money to a celebrity barbershop, has unpaid rent, and failed to return an advance from a marketing agency that was hired to leverage his celebrity into endorsement contracts.
Read the whole sordid affair in the News. Support local journalism!
The federal investigation reportedly is focused on “wire fraud, gambling, and prop bets,” the News reports. There is no indication what role, if any Beasley played in this alleged scheme, but the investigation hanging over his head not only led the Pistons to pull their contract talks, but makes it unlikely he signs any deal this season beyond perhaps a team taking a flier for veteran minimum on the chance he can play and be effective this season while his legal proceedings play out.
It’s not the first time Beasley has had serious financial troubles.
Perhaps the saddest and most concerning fact uncovered in the reporting is that Beasley lost a $5.8 million judgment three years ago to South River Capital, LLC, a firm that specializes in loaning money to professional athletes.
I don’t think it takes too much to imagine just how easy it would be for a young, suddenly rich young athlete to find themselves in deep financial holes based on accepting high-interest advances on multimillion-dollar salaries.
He followed that up with another potentially ruinous decision last year, when he reportedly signed a deal with another firm for a loan and used his current and future NBA earnings as collateral.
“It is very common for professional athletes to go to third-party lenders and get advances on contracts. It’s a part of the business of professional sports,” Steve Haney, Beasley’s lawyer, told The Detroit News. “Many of these lenders are predatory and charge extremely high interest rates and outrageous fees that border on usury.”
I’m sad I very likely won’t be seeing Beasley on the floor in a Pistons, but this story transcends basketball and any selfish feelings I have as a fan. I just hope Beasley can come out of this with his finances settled and his physical and mental health in tact.
These kind of financial issues can be stressful and scary, and even if they are self inflicted, it doesn’t mean we shouldn’t hope Beasley can come out the other side OK.