“8 more years before Allen Iverson can access his $32 million!”: How Reebok set up a trust fund for ‘The Answer’ and saved him from bankruptcy

The story of how Reebok saved Sixers’ legend, Allen Iverson, from bankruptcy by opening a special trust fund for him

When young players join the NBA, they suddenly see a cash inflow as they’ve never experienced before. Most of the athletes come from humble backgrounds, and their first NBA checks are the first times they’ve seen so much money. Often that leads to big expenditures and blowing the entire checks instantly.

Allen Iverson falls in the same category. The Sixers’ legend blew through almost $200 million career earnings and declared bankruptcy in 2012. Iverson’s expenses were ridiculous. He was said to spend $10,000 every month on clothes, $10,000 on groceries, and another $10,000 on restaurants. Just like another current Sixers player, AI used to frequent strip clubs too, blowing $30-40k in each trip.

Also Read: “Michael Jordan was just a victim that night!”: Allen Iverson explains what transpired 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 $900,000 to a jeweler in Atlanta, to which Iverson replied and said he didn’t have the money.

How Reebok and their unique pay-out saved Allen Iverson from going broke

In 2001, Allen Iverson had just won the NBA MVP honors. Reebok approached the MVP with the most unique deal. They offered him $800,000 yearly for life, along with a $32 million trust fund, which he can access once he turns 55 years old.

Rebook made Allen Iverson put $32M into a trust that pays him $1M a yr.
He can’t access the money until he
is 55 so he wouldn’t go broke. “I was throwing $50K a night at strippers.” pic.twitter.com/RludAOKtl6

— Black Millionaires ® (@Blackmillions_) March 23, 2022

Also Read: “Michael Jordan is a better golfer than I am”: Charles Barkley admits to missing playing golf with MJ during a recent interview with The Volume

The yearly payouts from the deal, and the trust fund are the things that have kept AI from going broke. Hopefully, this time when he gets the money in 2030, he is wiser with it, and does not end up burning through it.