OT: Allen Iverson Reportedly Broke

[partial]

Bad times for the answer, through his career he is said to have earned at least around 200 million dollars most of which is likely gone. I always liked AI even though he tried hard to present himself as an unlikable diva so it's disappointing the way his career has fizzled out. Probably needed more practice with money.

http://www.forbes.com/sites/jamesma...ion-in-his-nba-career-hes-now-broke-say-what/

 

[Kitaman]

Read that last week, but being broke is relative. He's probably still has more money than me, and should be able to pay rent, bills and some vacationing. His lifestyle won't be like before, that's for sure.

Here's a good solution for NBA players

 

[CL82]

I've often thought that a good approach for pro-athletes would be to place 50% of their net after tax earnings in a trust with an independant trustee engaging a professional money manger. The purpose of the trust would be to provide and income for the athlete after retirement. While 50% sounds like a high number it should be painless if adopted from day one, since the athlete would never have known the higher life style. He (or she, I suppose) could piss away, or invest, the other 50%. Upon retirement meter the flow out of the trust based upon the athletes actuarial life expectancy. If done well, and there are some techinical hoops that have to be jumped through to do this optimally, the athlete should, minimally, have a lifetime income supplement and, optimally, can have an income stream sufficient to support his lifestyle upon retirement.

 

[Prezidint]

Always loved AI as a player, in terms of effort, skill, and so on.
Never liked him as a person. He's self-centered, self-indulgent, egomaniacal, and about every other negative term I can think of for a person. He was also the guy who helped mainstream the "bad ass thug/nigah" image in the NBA, which was, to this fan, at least, an unfortunate transition in the NBA.

I'm happy he's broke. Nothing like bankruptcy and a little begging to help an overblown figure out that's he's just not a good person. Maybe with a little introspection while he's watching all of his crap get repossessed he'll be able to discover a little humbleness.

 

[Prezidint]

If done well, and there are some techinical hoops that have to be jumped through to do this optimally, the athlete should, minimally, have a lifetime supplement and, optimally, can have an income streem to sufficient to support his lifestyle upon retirement.

With the rage in the world being outside control of one's life, through government or otherwise, the NBA players union should consider a mandatory 20% contribution to a pension fund.

Would love to see the video that the NBA shows rookies showing 60% are broke within a few years of ending their careers. The main point that these men don't get is what I call "voluntary carrying costs." They are recurring costs for optional items - cell phone, TV, extra car, stolen ID monthly fee, and on and on. For a pro athlete it would be the mortgage on the giant house, the maintenance cost for the airplane, and so on.

It's very hard to get any person to understand that, upon losing their main source of income, voluntary carrying costs must be cut or a complete loss of assets is certain. Not sure why that is, as it's just math, but, nonetheless, people tend to ignore the obvious trend toward zero when they lose their income, and they don't start making changes until it's too late.

 

[CL82]

With the rage in the world being outside control of one's life, through government or otherwise, the NBA players union should consider a mandatory 20% contribution to a pension fund.

Would love to see the video that the NBA shows rookies showing 60% are broke within a few years of ending their careers. The main point that these men don't get is what I call "voluntary carrying costs." They are recurring costs for optional items - cell phone, TV, extra car, stolen ID monthly fee, and on and on. For a pro athlete it would be the mortgage on the giant house, the maintenance cost for the airplane, and so on.

It's very hard to get any person to understand that, upon losing their main source of income, voluntary carrying costs must be cut or a complete loss of assets is certain. Not sure why that is, as it's just math, but, nonetheless, people tend to ignore the obvious trend toward zero when they lose their income, and they don't start making changes until it's too late.

It's hard to expect kids who have been taken care of the bulk of their adult lives, either in college or by having and very large income stream, to develop these skills if they didn't have a role model in their youth. The idea that I suggested above doesn't build these skills but does protect them from themselves to a degree. For what it is worth, it has been my experience that people who have these types of arrangements end up understanding the benefits of delayed gratification and that is a core skill necessary for a money management plan.

 

[Henry]

They all want to live like Bill Gates but don't realize that their big fat short term contracts basically pay them what Bill Gates earns in interest in a year. I don't feel too sorry for guys like him that go broke. They know exactly what they are doing but just don't care that the money will end at some time. Marcus Camby used to buy a new suit for every home game.

 

[WisePig]

Well that puts AI in the majority. SI did a report several years back revealing 60% of NBA players are broke within 5 years of being out of the league. It sounds pretty bad until you read 78% of NFL players experience the same pitfall. Recently Terell Owens announced he was broke as well.

I actually like AI, he sacrificed his body every game and begged to play for the USA to represent his country the year many players deferred. He matured a lot during his career, but he came into the league a hardened thug.

 

[mets1090]

I'll never understand people that say they are happy someone else is broke. I don't necessarily feel too bad for a pro athlete that loses all of his money as they get to live the high life for 15 or so years before living like a normal person the rest of their lives for the most part, but to say you are happy that someone else lost everything always seemed weird to me.

 

[TheChamps990411]

I'll never understand people that say they are happy someone else is broke. I don't necessarily feel too bad for a pro athlete that loses all of his money as they get to live the high life for 15 or so years before living like a normal person the rest of their lives for the most part, but to say you are happy that someone else lost everything always seemed weird to me.

Envious haters.

 

[Prezidint]

. . . but to say you are happy that someone else lost everything always seemed weird to me.

Really? You never feel schadenfreud?
You're an amazing person.
Or you do, in fact, understand.

 

[tzznandrew]

I'll never understand people that say they are happy someone else is broke. I don't necessarily feel too bad for a pro athlete that loses all of his money as they get to live the high life for 15 or so years before living like a normal person the rest of their lives for the most part, but to say you are happy that someone else lost everything always seemed weird to me.

I wouldn't be unhappy if some of those spoiled kids on shows like "My Super Sweet 16" had to go dumpster diving to eat. It would probably benefit them and society to realize there are more tragic matters than the color of your birthday car being the "wrong" color.

Your point, though, is fair.

 

[progrocks]

Ray Ray came out the same year, something tells me this will not be an issue with him.

 

[huskypantz]

It's not like AI didn't have parental supervision after being drafted. His mom followed him to Philly and used to bring a sign to the sixers games that read 'That's my boy" which she held up every time he scored. I don't think she's holding that sign up any more. Ah well, there's always reality TV shows.

 

[beerfan]

Let's be fair. Ray Allen took a risk and hired a lawyer to negotiate his contract, he is one of the smarter ones,.... but all it takes is one bad investment, and I am sure these guys have lots of people all day long telling them what a great deal they have for their money...

 

[JT55]

Iverson reportedly NOT broke because a friend thought ahead. http://probasketballtalk.nbcsports....-smart/?utm_source=dlvr.it&utm_medium=twitter

 

[partial]

Sounds like AI won't be doing car dealership commercials in Philly anytime soon. Good for him.

 

[Prezidint]

Iverson reportedly NOT broke because a friend thought ahead. http://probasketballtalk.nbcsports....-smart/?utm_source=dlvr.it&utm_medium=twitter

My God, what passes for journalism today is pathetic.
A "friend" set up an account for him? Huh? In the amount of 35 million? That's stupid, unless AI has some admirer who gifted him 35 mill.

It sounds like they're implying that AI has an irrevocable inter vivos spendthrift trust that he established for himself. If so, well done AI, you were very wise to do it. Creditors would not be able to reach that money. Well, not at least until he gets it.

But if there's some sort of construct in law that will allow AI to receive a mill from his trust that he then doesn't have to turn over to his creditors, please send a link, as my clients would find that a valuable construct, indeed.

AI will either pay those bills, or declare bankruptcy. Mark it down.