Allen Iverson – A Broke Multimillionaire
Another NBA superstar who happened to go broke is Allen Iverson, by now we all know how quickly former NBA players lose all their money after retirement. Earning those big bucks could easily lure anyone into an unsustainable lavish lifestyle if the person lacks self-discipline, and those huge paychecks usually turn into even bigger problems later in life without proper education in financial literacy.
During his career, Iverson has earned a staggering estimated $200 million which he spent up to the last cent on unnecessary luxuries. He developed an exceedingly dangerous habit of treating money as an infinite resource which lead to bankruptcy. Lucky for him, he was saved from this misfortune by a friend which opened up an opportunity for him to get a second chance on his finances. As bizarre as it sounds, Iverson is currently broke and a multimillionaire at the same time. Let’s dive into the details on how this came to be.
Allen Iverson, also known as “The Answer” in the NBA, was born on 7 June 1975 in Hampton Virginia to a single mother as his father left before he was brought into this world. A talented athlete who has played various sports in his school days, his basketball career started during high school where he started out as a point guard for Bethel High School leading the team to the Virginia State Championships. At the same time he was also playing as a quarterback for the school’s football team, also leading the said team in the same state championships.
His contributions to these teams during his junior year earned him The Associated Press High School Player of the Year award in both sports. Continuing his basketball career in his college years, he won the Big East Rookie of the Year award and following the conclusion of his sophomore year, Iverson was included in the 1996 NBA draft. During his professional basketball career, he once became the highest paid athlete in the world, earning a total of over $154 million in salary alone prior to his retirement. Adding to this is the estimated $50 million he earned from endorsements.
Now you will be wondering how he burned through such a thick stash. Apparently, Iverson is known for his extravagant spending which is why according to many sports fans they “saw it coming”. Iverson relentlessly spent his money on luxury cars, mansions, strip clubs, and blew a tons of cash to fuel his intense gambling addiction. His exceeding generosity was also a problem as he regularly showered his friends and family with extravagant gifts, houses, cars, and boats. In this sentiment his heart was in the right place, but his money wasn’t.
Unable to curb his spending habits, enormous bills including tens and thousands of dollars monthly in insurance for multiple cars started piling up. Adding to the list of his expenses is an ugly divorce in 2010 which requires him to pay cash out hefty amounts to his ex wife and their five children as part of the settlement. In 2012 Iverson was sued by a jewelry shop where he bought items amounting up to $300 thousand but never paid. The case ended with a $900 thousand fine. His bank account was legally seized to pay off his debts, leaving him to file for bankruptcy. Allen Iverson went from globally-adored NBA icon to broke, divorced, exiled sports tragedy but this fortunately there’s a very bright light awaiting at the end of this tunnel.
Prior to his bankruptcy, a friend of his took notice of Allen’s unhealthy spending habits and knew that he would end up spending everything. This friend’s foresight and firm grip on the situation was the blessing Iverson needed to save him from himself. His friend had him sign a unique endorsement deal with Rebook which entitled him to $800 thousand annually for life and set aside $32 million in a trust fund that Allen may not access until the year 2030 when he turns 55, making him a broke multi-millionaire at the current time as he has yet to gain access to the trust fund.
Iverson’s story is not only a lesson for us, but hopefully for him as well. Fingers crossed, I have high hopes that he would make the best of this second chance and set things straight. Maybe the years he will be spending with a limited budget would give him enough time to change his lifestyle before the $32 million is released. We should all try to adopt his friend’s insight as having investments would certainly prove to be advantageous in the future. It ensures you that you would never be left with nothing no matter what complications may arise. Of course it is best to practice good money habits as early as possible to prevent erroneous financial decisions.
Let me share with you some ways on how you can start a healthy financial lifestyle and begin saving for your future. To learn more on this matter, you can download a FREE copy of my e-book Pinoy Millionaire Game Plan: A Blueprint to Financial Freedom on this link: https://junpasion.com/blueprint-to-financial-freedom/
Here’s to your success!