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Report: Allen Iverson is not broke because a friend was smart

Mar 2, 2012, 1:11 PM EDT

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Someone in Allen Iverson’s inner circle was a true friend to the man.

We reported recently on a judge ordering Iverson to pay more than $850,000 to a jewelry store for goods received, and the judge needing to go into his bank account and get what they could.

If that happened to you or me, it’s a sign that we’re broke. There have been a lot of reports Iverson is busted. That is why he is willing to play in Puerto Rico or the D-League.

But like I said above — and as Peter Vecsey laid out in detail in the New York Post — someone in Iverson’s inner circle was a true friend. Someone recognized if just given the money he would burn through it, so…

A person with a firm grip on the situation informs me Iverson has an account worth $32 million, a principal he is prohibited from touching until 55. In the meantime, it feeds him $1 million annually.

At 45, Iverson is eligible to start drawing on an NBA pension that maxes out at 10 years of active duty, or take whatever’s there as lump sum. He will be entitled roughly to $8,000 per month ($800 per x 10).

If at all possible, Iverson will issue a restraining order against himself until he’s 62 or so. At that time, I’m told, his lump sum will be between $1.5 million and $1.8 million, or he can elect to take monthly checks of approximately $14,000 per.

The $32 million is known as the “Reebok fund” among Iverson’s friends, because the money came from shoe deals.

Now, living with in those means may be a challenge for Iverson. But someone had the foresight to protect the man from himself, and that is going to save him. That is what a true friend does.

  1. seanb20124 - Mar 2, 2012 at 1:19 PM

    Not sure how you prohibit someone from touching their own money. Now he just has to hope that the firm managing his money does not go belly up. Hope for the best.

    • barryhoskings - Mar 2, 2012 at 10:29 PM

      The money goes into a federally approved retirement account. Once the funds are in he’d have to pay a massive penalty to take any of it out, often about 25-35% in a combination of penalties & taxes, both federal & state. That alone will take the starch out of any noodle. So, if he’s smart enough to do basic math then he’s smart enough to know that he doesn’t want to give up about $15 million to the feds & state just so, as Cris Rock once said, just to by some rims & blings for his posse. And, oh yeah, it’s also protected from bankruptcy.

      • barryhoskings - Mar 2, 2012 at 10:44 PM

        One more, as a retired tax & financial planner who’s seen the very smart and the very very dumb, I don’t understand why each pro league’s Players Association mandate that 10% of every player’s income from that sport has to go into a secured retirement account & can’t be touched until the player reaches 55. End of sermon.

      • barryhoskings - Mar 2, 2012 at 10:46 PM

        my bad, typing too fast. left out the word doesn’t. Should be each pro league player’s association DOESN’T mandate… SBT.

    • scooter2the - Apr 23, 2012 at 3:27 PM

      Folks –

      There is a lot more to Allen Iverson than has been reported in the press during his years at Georgetown and the NBA. What sells is all the negative stuff about the supposed inner city kid atheletes – well we all are people who have their own story and culture and we are quick to jump to conclussions when the press reports something and very seldom does the press give the entire story or all the facts about anything these days. I for one think Allen Inverson will be just fine. He is not without his faults – none of us are. His faults just happen to be public record without much of the good things he has done throughout his career off the court. Allen knew what he was doing when he allowed this to be done. He will be set up for life. From a Hampton Native.

  2. terraj35 - Mar 2, 2012 at 1:23 PM

    How about they take that money and give it to someone who would use it in a productive way. Instead, he’s gonna buy some rims and gamble the rest away. Iverson is such a piece of trash.

    • jizzojames - Apr 8, 2012 at 11:38 AM

      WOW!! I didn’t know you knew Allen Iverson on a personal level. Can you get me an autograph? (Sarcasm at its finest) You don’t know what Iverson may do, or what he has been doing. All you know is what is publicized, which may or may not be true. Before you make claim of what he will do, and who should get HIS money that he earnestly played for, take a step back terraj35 and just breathe.

      • khuxford - Aug 10, 2012 at 8:52 AM

        What are those most recent stories? Incredibly flashy jewelry purchases he couldn’t afford to complete the purchase of with the cash he currently has access to? What are the old stories? His mom flying back into Philly, being unable to locate her car in the long term parking and dealing with it by buying a new car?

        Before you imply someone is making a statement out of ignorance, step back, breathe and remember we’re talking about someone who has demonstrated the exact behavior he was being accused of.

        And this comes from someone who, also, disagrees with terraj35 about Iverson being trash.

  3. cured76 - Mar 2, 2012 at 1:27 PM

    The funds are set up so you can’t go back in and grab them. An annuity, it looks like. The smartest investment a player can make, IMO.

    • frankvzappa - Mar 2, 2012 at 10:34 PM

      I don’t think it is the smartest move a black player can make…anybody take a look at african-heritaged life expectancies lately? Iverson will be lucky if he even makes it to 55, considering the damage he did to his body in the partying days. You only get one liver…actually, scratch that, because I am pretty sure 32 million can buy another one, in some country or other.

  4. bearsstillsuck - Mar 2, 2012 at 1:50 PM

    It’s pathetic that he needs to be treated like a five year old.

    • mightyquinn69 - Mar 2, 2012 at 2:20 PM

      lol, like a 5 year old? Well, when you come from nothing it can be very hard to manage that type of money. So, have someone that can is always the best thing.

      • Mr. Wright 212 - Mar 2, 2012 at 4:44 PM

        mightyquinn, that’s a cop out. I came from nothing and while I’ve only brushed close to six figures in a year a couple of times, I KNOW I would never blow through $150 million — family, friends or not. At least half of that money would be going into annuities and INTEREST BEARING accounts, along with real estate gains.

        And again, I came from nothing, with practical parents who gained a bit of knowledge in their adult years. It’s not an excuse. Reading about people like Iverson, A. Walker, Scottie and others just flat out makes my heart hurt.

      • sasquash20 - Mar 2, 2012 at 6:12 PM

        Bearsstillsuck your response says it all. Practical parents is what Iverson didn’t have. You were taught how to live, and behave and were held accountable. Iverson was taught none of that. He probably went to poor ghetto schools that are over crowded and under funded. On top of that he was a superstar athlete that got away with anything he wanted to. He was probably coddled by coaches, teachers, and all the hanger ons that try and leach on to these talented kids from the ghetto. He was never held accountable. You may have come from nothing but you had much better guidance then Iverson. He probably didn’t even understand the things you said you would have done with that money. Also he made way more then 150 million. His Reebok deal was monster for that time.

    • barryhoskings - Mar 2, 2012 at 10:39 PM

      Not really that uncommon. If you have a commercially viable talent then that’s all you do, nothing else. No regular job, no hands on checking account, no real concept of the realities of life once your talent runs out. In my generation all 4 of the Beatles from about age 17 to 35 never handled a checking account, didn’t know anything about publishing rights to their songs. Great story when one of the “assistants” needed cash from Paul to buy something Paul opened a locked drawer and there were two years worth of pay envelopes plus several cashier’s checks, all totaled over $2 million in 1969 dollars, worth today over $13 million. Yeah, talent in one area frequently doesn’t translate to brains in another. So, yeah, you’re right – they have to be treated like a 5 year old. Look at how many NFL players who made millions are now flat broke.

  5. dsimp724 - Mar 2, 2012 at 2:08 PM

    Atleast he cant waste the money on tattoos anymore

  6. franklamar17 - Mar 2, 2012 at 2:14 PM

    Smart move by him…

  7. ogre2010 - Mar 2, 2012 at 2:16 PM

    Great Story!!

  8. totallyuselessme - Mar 2, 2012 at 2:26 PM

    Awesome guy.

    He could hang out with me anytime.

  9. dibens10 - Mar 2, 2012 at 2:28 PM

    You guys are unbelievable. This is an amazing story about what this person has done for him. Don’t hate on him because he is living the life we all want. Look at the flip side. If this man doesn’t do this, within ten years we would hear of a another future hall of famers broke sad story. It’s not good for his family or for the sport.

  10. baron30 - Mar 2, 2012 at 2:50 PM

    Props to AI for at least making a worthwhile investment in a decent financial manager. I guess the guy did something right

  11. sellahh - Mar 2, 2012 at 2:58 PM

    Ok, so he’s not broke now.
    “At 45, Iverson is eligible to (…) take whatever’s there as lump sum.”
    But he will be at 46.

  12. kaf39 - Mar 2, 2012 at 3:06 PM

    Interesting

  13. stadix093 - Mar 2, 2012 at 3:50 PM

    Every player in the NBA should read this. Especially Gilbert Arenas.

  14. thedripfeed - Mar 2, 2012 at 4:14 PM

    One of the best things a pro athlete can do is appoint a trustee to oversee their assets.Someone they can trust and has their best interests at heart will keep them out of trouble. As a Financial Planner I am constantly hearing stories from other planners who have clients that are athletes and how even against the planners best recomendations the player blows their money within a few years. Find a reputable advisor and find someone who can be trusted to help you protect your assets.Athletes, money burns faster than oil when you dont pay attention

  15. rob0527 - Mar 2, 2012 at 5:00 PM

    Why don’t all pro athletes have friends like this?

  16. rexgrossman8 - Mar 2, 2012 at 5:02 PM

    I wish more people had friends like that.

  17. raidmagic - Mar 2, 2012 at 5:22 PM

    It’s about time we get to read a story about a guy helping instead of screwing a friend. Good on that guy.

  18. jigwig13 - Mar 2, 2012 at 5:44 PM

    Great friend

  19. wj4122 - Mar 2, 2012 at 9:33 PM

    I hope his friend that saved his ass gets some money!

  20. losangelasbasketball - Mar 3, 2012 at 12:09 AM

    I bet the NBA probably set iverson up with this financial advisor somehow, lot of broke old school ballers walking around these days that weren’t as lucky…the NBA… where caring happens…

  21. crillbill - Mar 3, 2012 at 1:29 AM

    why do we all instantly believe this?

  22. kunztown - Mar 3, 2012 at 4:40 PM

    I’ve never made 50k a year, and I have my house, and car paid off, and am living quite comfortable. If I can do it with 50k, I can’t understand athletes who make over a million having money problems. Maybe it’s time to settle down with a family and quit the partying lifestyle….

  23. sufferingbirdsfan - Mar 4, 2012 at 10:22 AM

    whos the friend

  24. sufferingbirdsfan - Mar 4, 2012 at 10:23 AM

    whos the friend then

  25. condor75 - Mar 24, 2012 at 6:31 PM

    People in America go broke every single day, why are jock sniffers so obsessed with other peoples money. He made so if he blows it that is his biz. Not like anyone here is gonna pay his mortgage

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