By Tiyana Jordan
- Allen Iverson is set to receive a $32M trust fund as part of a lifetime deal with Reebok when he turns 55
- Reebok pays Iverson $800,000 per year in perpetuity
When hair braids to the back, sweat headbands, and team jerseys were a package deal of style influenced by NBA Hall of Famer Allen Iverson (AI), another deal he packaged was the $800,000 yearly salary with the footwear and apparel company Reebok in 2001. The good deal didn’t end there because at age 47, Iverson is less than 10 years away from receiving a $32 million trust fund from Reebok when he turns 55.
Why This Matters: Reebok has already paid the 11x All-Star and 4x scoring champ over $16 million since 2001 in annual payments. However, AI very publicly struggled with his finances. Nearly two years after his NBA career came to an end in 2010 Iverson’s estimated $200 million dollar net worth was reportedly all gone.
The deal with Reebok is what “shook” him back, and what a great “crossover” from trial to triumph for Iverson as his lifetime deal helped to save his financial woes. As an elite athlete his prior money decisions could have left him with a total “L”. His Reebok contract is perhaps the biggest win. Other athletes including LeBron James followed in Iverson’s footsteps by inking his own $1 billion lifetime deal with Nike (NKE %), though this isn’t a guaranteed cash amount like AI’s.
What’s Next: The countdown has started, Iverson will be 50 in three years, and just five-years away from receiving his $32 million trust fund cash pay out. AI definitely secured a unique deal that shows the importance of proper wealth management even after living a life of abundance that lacked financial discipline.
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