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View Full Version : Allen Iverson NOT broke...... Sort of



That Guy Mooque
03-02-2012, 10:52 PM
Apparently Iverson has a $32 million trust fund set up that will become available to him at age 45. Of course, his wife will likely get half of that. Quite the weird situation. He'll be strapped for cash for almost the next decade, only to get a second chance.

http://www.inflexwetrust.com/2012/03/02/nba-wait-what-allen-iverson-is-not-broke-reportedly-has-32-million-saved/

D1JM
03-02-2012, 10:54 PM
good for him. i dont know why a lot of athletes dont do this more often

AI
03-02-2012, 10:56 PM
Coughs, time for all the haters to say they're sorry...

Hustlenomics
03-02-2012, 10:58 PM
hes has a lifetime contract with reebok that pays him 5 million each year

That Guy Mooque
03-02-2012, 11:01 PM
hes has a lifetime contract with reebok that pays him 5 million each year

Is that actually true? I hope it is, but if he's making $5 million a year, why did the judge have to garnish his wages to pay back the $750K for the jewels? Because he refused to pay?

pd7631
03-02-2012, 11:02 PM
All I heard when news broke that he was "broke" was...."what an idiot", "should've stayed in college" etc. etc. Sure the guy lived it up in his heyday....but he left a pretty nice chunk of change for himself in retirement. Now that he's officially not broke, hopefully a team will give him one last shot to leave the NBA on good terms....the way all great players should.

Hustlenomics
03-02-2012, 11:08 PM
Is that actually true? I hope it is, but if he's making $5 million a year, why did the judge have to garnish his wages to pay back the $750K for the jewels? Because he refused to pay?

yea he signed it years back when he was playing with Philly. Im guessing he most likely refused to pay the $750K which doesn't surprise me

AI
03-02-2012, 11:13 PM
$5M year plus a $32M trust fund, I wish I was that broke.

pd7631
03-02-2012, 11:23 PM
this thread will get half as many posts as a thread that deals with something negative involving AI

That Guy Mooque
03-02-2012, 11:27 PM
this thread will get half as many posts as a thread that deals with something negative involving AI

For sure! If the thread was titled "Allen Iverson gets evicted from AC casino" or "Allen Iverson's cars get repossessed", there would be 3 pages worth of "what a thug" or "hahaha serves him right".

iliketurtles24
03-02-2012, 11:30 PM
Wow what a thug to set up a trust fund. idiot.

Serves him right for making it available at age 45, what an idiot.

oscaretwz
03-02-2012, 11:30 PM
hes has a lifetime contract with reebok that pays him 5 million each year http://www.bicidi.info/jpg1hes has a lifetime contract with reebok

RaiderLakersA's
03-02-2012, 11:40 PM
Is that actually true? I hope it is, but if he's making $5 million a year, why did the judge have to garnish his wages to pay back the $750K for the jewels? Because he refused to pay?

Garnishments usually happen due to FAILURE to pay. That should not be confused with the INABILITY to pay. You could be earning a million dollars a second, but if you don't pay your debtors, they will come after you and garnishments are the second best recourse.

RaiderLakersA's
03-02-2012, 11:50 PM
this thread will get half as many posts as a thread that deals with something negative involving AI

Well, in fairness to his critics, didn't Iverson make something like $275 million in his prime? If you can burn through $240 mil in a little over a decade, it stands to reason that those same excesses will lead you to burn through $32 million in no time at all. I hope that isn't the case.

As for the Reebok lifetime contract, can someone post a link? I question any company that can guaranty that kind of money. I'd love to see the specific language of the contract.

Ill21
03-02-2012, 11:54 PM
I'm glad. I hate to see athletes piss their millions away.

That Guy Mooque
03-02-2012, 11:54 PM
This is from an AskMen.com article about the 5 biggest athlete endorsement deals, listing AI's lifetime Reebok contract at 5.

http://www.askmen.com/sports/business_100/101b_sports_business.html

pd7631
03-02-2012, 11:58 PM
Well, in fairness to his critics, didn't Iverson make something like $275 million in his prime? If you can burn through $240 mil in a little over a decade, it stands to reason that those same excesses will lead you to burn through $32 million in no time at all. I hope that isn't the case.

As for the Reebok lifetime contract, can someone post a link? I question any company that can guaranty that kind of money. I'd love to see the specific language of the contract.

http://www.usatoday.com/sports/nba/sixers/2001-11-28-iverson-reebok.htm


I'd also just like to point out how once again, the media is able to paint a picture of someone that will sit in people's minds, despite reporting news with limited factual evidence. Many reports about AI being broke read "Iverson Says He Can't Pay Jewelry Bill"....clearly this was not true, and was based totally off of assumptions.

Also, you won't see this on ESPN or anywhere else, because it isn't "a good story". ESPN already teed off on AI a couple weeks ago when everyone thought he was broke, so they just piled on and criticized the guy.

pd7631
03-02-2012, 11:59 PM
This is from an AskMen.com article about the 5 biggest athlete endorsement deals, listing AI's lifetime Reebok contract at 5.

http://www.askmen.com/sports/business_100/101b_sports_business.html

key phrase in that article "annual payout is guaranteed for life"

RaiderLakersA's
03-03-2012, 12:20 AM
key phrase in that article "annual payout is guaranteed for life"

Actually, at least in the USA Today link, the key words are these:

"We believe we can continue to bring forth products and engage consumers on Allen's behalf and ours for years after his career is over."

While the terms of the deal weren't disclosed, the translation is "as long as Reebok continues to make products bearing Allen's namesake, we'll continue to pay him a piece of the cut for as long as he lives."

However, if and when Reebok stops manufacturing Iverson products, the company will no longer be on the hook for that $5mil. I'd also be willing to bet that Iverson doesn't have any language in his contract which guarantees that Reebok will continue to develop and manufacture Iverson gear ad infinitum. If there is no demand for the product or a consumer base for it, Reebok likely reserves the right to sunset the Iverson line.

In short, the lifetime guaranty probably isn't what you think it is.

pd7631
03-03-2012, 12:27 AM
Actually, at least in the USA Today link, the key words are these:

"We believe we can continue to bring forth products and engage consumers on Allen's behalf and ours for years after his career is over."

While the terms of the deal weren't disclosed, the translation is "as long as Reebok continues to make products bearing Allen's namesake, we'll continue to pay him a piece of the cut for as long as he lives."

However, if and when Reebok stops manufacturing Iverson products, the company will no longer be on the hook for that $5mil. I'd also be willing to bet that Iverson doesn't have any language in his contract which guarantees that Reebok will continue to develop and manufacture Iverson gear ad infinitum. If there is no demand for the product or a consumer base for it, Reebok likely reserves the right to sunset the Iverson line.

In short, the lifetime guaranty probably isn't what you think it is.


That phrase is pretty vague in terms of how it relates to AI's contract(if at all) and is open to all sorts of interpretation. "Annual payout guaranteed for life" doesn't leave much to the imagination.

Cal827
03-03-2012, 12:32 AM
Damn, I guess I better eat some crow. Smart move from him. If he has the lifetime contract with Reebok then I have no idea why he's having all those other problems.


I guess he truly wants to come back just to play and win.

AI
03-03-2012, 12:34 AM
To whoever said Iverson burnt over $240 million in a decade, half of that went to his wife as well as half of everything else Iverson owned.

That Guy Mooque
03-03-2012, 12:34 AM
Could they have terminated the deal? Possibly...but I offer two counter points:

1. As recently as a month ago, I still seen Iverson brand products being sold online through Reebok (including special colorway "Questions"). So it's not unreasonable to think that he'd been receiving said payments AT LEAST to this point.

2. Iverson was the biggest basketball star not named Jordan when he signed that contract in 2001. It's also not unreasonable to think that Reebok may have agreed to a legit lifetime deal (perhaps the annual payments could decrease over the years depending on sales, marketability, etc.) in an effort to keep him from going over to Nike.

I don't know if either of those points are fact, but they're certainly possibilities. I'd love to see the actual verbiage of that contract.

pd7631
03-03-2012, 12:37 AM
Could they have terminated the deal? Possibly...but I offer two counter points:

1. As recently as a month ago, I still seen Iverson brand products being sold online through Reebok (including special colorway "Questions"). So it's not unreasonable to think that he'd been receiving said payments AT LEAST to this point.

2. Iverson was the biggest basketball star not named Jordan when he signed that contract in 2001. It's also not unreasonable to think that Reebok may have agreed to a legit lifetime deal (perhaps the annual payments could decrease over the years depending on sales, marketability, etc.) in an effort to keep him from going over to Nike.

I don't know if either of those points are fact, but they're certainly possibilities. I'd love to see the actual verbiage of that contract.

just to add to that, the Questions are also featured in 2k12

AI
03-03-2012, 12:38 AM
Everything I've read online about his endorsement contract with Reebok states that it is guaranteed with the key word being "lifetime". So yes, he is getting $5 million a year from Reebok.

RaiderLakersA's
03-03-2012, 12:45 AM
That phrase is pretty vague in terms of how it relates to AI's contract(if at all) and is open to all sorts of interpretation. "Annual payout guaranteed for life" doesn't leave much to the imagination.

My point is simply this: no company can guaranty that it will even be around for the span of an average human life, let alone earn enough profits to make that kind of payout each and every year.

Businesses, even ones with the kind of marketshare that Reebok presently has, are really just a lengthy market downturn away from shuttering. Look at all of the major companies that we lost just in the last 3-4 years, the most recent being Kodak, which was a huge profit center in its heyday. Gone.

No matter what the public relations slant may be, I can assure you that the execs and in-house counsel for Reebok did not create a contract with Iverson without an escape clause or three embedded. Saying that it is a lifetime contract is probably no more than a soundbite to lure in other popular professional athletes to the company.

Either way, let's hope for the best for AI.

pd7631
03-03-2012, 12:48 AM
My point is simply this: no company can guaranty that it will even be around for the span of an average human life, let alone earn enough profits to make that kind of payout each and every year.

Businesses, even ones with the kind of marketshare that Reebok presently has, are really just a lengthy market downturn away from shuttering. Look at all of the major companies that we lost just in the last 3-4 years, the most recent being Kodak, which was a huge profit center in its heyday. Gone.

No matter what the public relations slant may be, I can assure you that the execs and in-house counsel for Reebok did not create a contract with Iverson without an escape clause or three embedded. Saying that it is a lifetime contract is probably no more than a soundbite to lure in other popular professional athletes to the company.

Either way, let's hope for the best for AI.

True, true. Either way, this doesn't affect the trust fund that he has set up, or the pension he receives from the NBA....so at the end of the day, the man is by no means broke.

RaiderLakersA's
03-03-2012, 12:49 AM
Could they have terminated the deal? Possibly...but I offer two counter points:

1. As recently as a month ago, I still seen Iverson brand products being sold online through Reebok (including special colorway "Questions"). So it's not unreasonable to think that he'd been receiving said payments AT LEAST to this point.

2. Iverson was the biggest basketball star not named Jordan when he signed that contract in 2001. It's also not unreasonable to think that Reebok may have agreed to a legit lifetime deal (perhaps the annual payments could decrease over the years depending on sales, marketability, etc.) in an effort to keep him from going over to Nike.

I don't know if either of those points are fact, but they're certainly possibilities. I'd love to see the actual verbiage of that contract.

Well put, and I agree with you...I'd love to read the actual contract.

RaiderLakersA's
03-03-2012, 12:52 AM
True, true. Either way, this doesn't affect the trust fund that he has set up, or the pension he receives from the NBA....so at the end of the day, the man is by no means broke.

Trust me, we all wish we had that trust fund signpost in front of our windshields. :D :D :D :D

Fresno
03-03-2012, 05:08 AM
I didnt believe the "Iverson is broke" story when it came out a few weeks ago.

His wife just a few months ago claimed he was worth $20+ Million.

Now why would she lie about his money, when she just took 1/2 of it? :laugh:

I just hate that people are attributing any "comeback" to basketball due to money. The guy loves the game, and chances are he wants to right his wrongs and go out on his terms.

KnicksPain
03-03-2012, 08:11 AM
Great to hear he has that trust fund and hope he isnt broke now. Hope he can get one more chance with the league and go out in a positive light.

Antipod
03-03-2012, 09:25 AM
Now this is a dude who would like to get older asap :D

Alayla
03-03-2012, 10:08 AM
Apparently Iverson has a $32 million trust fund set up that will become available to him at age 45. Of course, his wife will likely get half of that. Quite the weird situation. He'll be strapped for cash for almost the next decade, only to get a second chance.

http://www.inflexwetrust.com/2012/03/02/nba-wait-what-allen-iverson-is-not-broke-reportedly-has-32-million-saved/

Also wrong he gets 5 millon a year on a lifetime Reebok contract

ackar
03-03-2012, 10:24 AM
I am glad for A.I. now sign the league min and come off the Bulls bench :)!

That Guy Mooque
03-03-2012, 03:59 PM
Also wrong he gets 5 millon a year on a lifetime Reebok contract

To be fair, I said that before I realized he had the life time Reebok contract and that the trust fund pays out $1 million a year until his NBA pension kicks in. But if you believe what some of that articles say, he'll still struggle anyway seeing as how "income isn't the issue, it's his poor choices". To a degree, that's true. But I hope he does the right thing.

pd1dish
03-03-2012, 04:09 PM
oh, so we thought he spent all of his money...he jsut spent all the money that was currently available to him. i wonder what will happen when he turns 45. hopefully he is smarter by then and saves because $32 mil can last you and your kids lifetime.

smith&wesson
03-03-2012, 04:36 PM
good for him.

THE MTL
03-03-2012, 05:46 PM
Wow what a thug to set up a trust fund. idiot.

Serves him right for making it available at age 45, what an idiot.

Actually its VERY SMART. Iverson has obviously mismanaged his money cause he shouldnt even need that trust fund at age 45. Dude probably made over 200 million between endorsements and NBA contracts.

Imagine if this trust fund was his to use now too. It would be gone next month. It is smart of AI to limit himself now and learn from mistakes.

He still has Reebok endorsement and can make some sort of cash flow playing basketball. He's still rich.

todu82
03-03-2012, 07:37 PM
That's good to hear for Iverson.

Jewelz0376
03-03-2012, 08:20 PM
Smart move for AI... More athletes should def do this


I can almost guarantee he will be smarter with that trust fund money than he was with the rest of the money he made...

Thats crazy though that he gets 5mil for life with Reebok..Its well deserved though considering he's the biggest start reebok ever and also when you think about how much money AI has made for reebok.

DerekRE_3
03-04-2012, 03:33 AM
Well, in fairness to his critics, didn't Iverson make something like $275 million in his prime? If you can burn through $240 mil in a little over a decade, it stands to reason that those same excesses will lead you to burn through $32 million in no time at all. I hope that isn't the case.

As for the Reebok lifetime contract, can someone post a link? I question any company that can guaranty that kind of money. I'd love to see the specific language of the contract.

exactly

Raph12
03-04-2012, 04:18 AM
If I was him, I would've retired as soon as I eclipsed Elgin Baylor as the 3rd leading scorer of all-time (28.3PPG at one point)... It would be nice to have my name up there with MJ and Wilt.