Allen Iverson is one of the most culturally significant basketball players of recent times. While he may not have enjoyed the same success that Kobe Bryant, Michael Jordan, or LeBron James have enjoyed, Iverson is a former MVP who generated a massive cult following for his exciting style of play.
Due to Iverson’s cultural appeal, he became one of the most in-demand NBA stars for custom sneakers. In the ongoing war for basketball talent between shoe companies, Iverson signed a deal with Reebok in 2001 with a unique stipulation. The contract is meant to last over Iverson’s lifetime.
Rather than agree on an outrageously large yearly sum, Iverson decided to break his contract up over his lifetime and accept $800,000 every year. Reebok has already paid Iverson over $16 million since 2001 in annual payments. However, a massive hit will come in 2030 when Iverson turns 55 and will be entitled to $32 million that Reebok has saved in a trust fund for him.
It is tough to decipher whether this deal can be called smart, even though it guaranteed Iverson a good amount of money every year. LeBron managed to grow his profile over time and when it came time to sign a new contract with Nike, James managed to get a $1 billion lifetime deal. It isn’t a guaranteed cash sum amount like Iverson’s, but still significant.
AI very publicly has struggled with his finances, with the Reebok sum not being enough to cover Iverson’s lavish expenses after he developed a taste for them as an NBA star.
The $32 million when he is 55 is the saving grace of the deal, as Iverson will hopefully be able to manage his money better and use that to safeguard him into his golden years.
