“8 more years before Allen Iverson can access his $32 million!” : How Reebok created a trust fund for “The Answer” and saved it from bankruptcy
The story of how Reebok saved Sixers legend Allen Iverson from bankruptcy by opening a special fund for him
When young players join the NBA, they suddenly see cash flow like they’ve never seen before. Most athletes come from modest backgrounds, and their first NBA checks are the first time they’ve seen that much money. Often, this results in large expenses and instantly blows the entire checks.
Allen Iverson falls into the same category. The Sixers legend blew nearly $200 million in career earnings and filed for bankruptcy in 2012. Iverson’s expenses were ridiculous. He was said to spend $10,000 a month on clothes, $10,000 on groceries, and another $10,000 on restaurants. Much like another current Sixers player, AI also frequented strip clubs, blowing $30-40,000 on each trip.
Also Read: ‘Michael Jordan Was Just a Victim That Night!’: Allen Iverson Explains What Happened Between Him and the Black Cat During His Rookie Year After the Infamous Crossover
AI’s financial troubles came into the limelight when a judge ordered him to pay an Atlanta jeweler $900,000, to which Iverson responded by saying he didn’t have the money. money.
How Reebok and their one-time payment saved Allen Iverson from bankruptcy
In 2001, Allen Iverson had just won NBA MVP honors. Reebok approached the MVP with the most unique deal. They offered him $800,000 a year for life, as well as a $32 million trust fund, which he can access once he turns 55.
Rebook forced Allen Iverson to pay $32 million into a trust that pays him $1 million a year.
He can’t access the money until he
turns 55 so as not to go bankrupt. “I was throwing $50,000 a night at strippers.” pic.twitter.com/RludAOKtl6
— Black Millionaires® (@Blackmillions_) March 23, 2022
Also Read: ‘Michael Jordan Is A Better Golfer Than Me’: Charles Barkley Admits Missing Golf With MJ During Recent Interview With The Volume
The annual agreement payments and the trust fund are what kept AI from going bankrupt. Hopefully this time when he receives the money in 2030 he will be wiser and not end up burning it.