In 2001, the same year he led the Sixers to his only NBA Finals appearance and was named the NBA MVP, Allen Iverson signed an endorsement contract heavily loaded on the backend.
The future Hall of Famer, then playing for the Philadelphia 76ers, came to new terms with Reebok just five years into a ten-year, $50 million contract Iverson signed ahead of his rookie season. He was the first overall pick in the 1996 Draft, having been taken 12 spots ahead of Kobe Bryant, his future opponent in the ’01 NBA Finals. He’d receive less annually than the $5 million average value per year, but in exchange he’d be given a guaranteed $800,000 per year for the rest of his life in addition to gaining access to a $32 million trust fund on his 55th birthday.
“It shows a lot of commitment, and hopefully I can stand up to my part,” Iverson told ESPN upon signing the deal in 2001. “I didn’t have the greatest past in the world, but they always stood by me and always stood up for me when times were bad. This is another time they stood by me and I’m just looking forward to doing the best I can for Reebok.”
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In October of 2023, Reebok announced it was taking its relationship with Iverson to another level by naming him vice president of Basketball — a role that’ll see him work alongside new president Shaquille O’Neal.
Iverson’s lifetime Reebok deal was the first such one inked by the company, and even now they remain rare among basketball players. Michael Jordan, LeBron James, and Kevin Durant each have lifetime contracts with Nike, while Steph Curry’s most recent extension with Under Armour has the possibility of turning into a lifetime commitment as well.
Iverson’s deal isn’t as lucrative as the others’, but 20 years later it’s proven to be a source of security during periods of tumultuousness. Despite earning a total of $155 million in salary alone during his 14-year NBA career, Iverson had already spent his entire fortune when his financial situation was revealed during divorce proceedings in 2012 and 2013.
The existence of the $32 million trust fund wasn’t made public until the divorce, and in a court filing Iverson said Reebok provided his only steady income, according to TMZ. During this same time period, Iverson also had his wages garnished by a judge after failing to pay $900,000 owed to a Georgia jeweler.
How Did Iverson Lose His Fortune?
The lavishness of Iverson’s spending is almost as legendary as his crossover or the pre-game outfits that — along with those of other young, black players — led to the NBA instituting a dress code. Former teammate Matt Barnes once recalled Iverson spending $30,000 or $40,000 per trip to the strip club. Iverson himself allegedly told a police officer during a traffic stop, “Take the vehicle, I have 10 more.”
Documents obtained by TMZ during his divorce revealed Iverson told a judge he spent $360,000 per month despite earning just $62,500 in the same time period. The Washington Post also reported Iverson told his estranged wife, Tawanna, at one point in the proceedings “I don’t even have money for a cheeseburger.” She then handed him $61.
The same story also quoted a source close to Iverson as saying half of the Reebok trust had been signed over to Tawanna as part of the divorce settlement. Kent Babb, the reporter of that story, later wrote the 2015 unauthorized biography Not a Game: The Incredible Rise and Unthinkable Fall of Allen Iverson. In it, he went on to report Iverson actually agreed to give the entire trust fund to Tawanna should he fail to meet certain terms. Iverson did indeed fail those terms, Babb wrote, but Tawanna still agreed to give him half of the funds.
Iverson’s Doing Better Now
However it may be split, the $32 million trust fund will be made available to Iverson when he turns 55 seven years from now on June 7, 2030. The structuring of the deal with Reebok in 2001 made sure money remained safe for Iverson to this date, and former Reebok CEO Matt O’Toole said the partnership continues to prove worthwhile for Reebok, too.
“He has a place in our heritage, and there is a group of consumers who want to connect to that. He’s relevant for a lot of our consumers,” said O’Toole, who is now Vice Chairman at Authentic Brands Group after the company purchased Reebok earlier this year. “Let’s get on a plane to Shanghai together. You bring Iverson into a market like that. I’ll stand firmly that he has a big place in basketball and sports history.”
For his part, Iverson is reportedly precluded by his Reebok contract from discussing terms of the deal. But a GQ cover story from the beginning of the year painted a better financial picture than the one that appeared in numerous headlines early in the last decade. “It’s one of the greatest feelings in the world that when you can’t play no more, you making millions of dollars off of what you did when you were playing,” Iverson said.
Iverson’s sneakers have remained a regular fixture among Reebok’s releases, and in recent years he’s maintained a partnership with the marijuana brand Viola, owned by fellow NBA retiree Al Harrington. At the beginning of 2023, Iverson entered into a new deal with Authentic Brands Group tapping the company to help develop his brand by securing new endorsements, strategic partnerships, and more.
In addition to Iverson, Authentic Brands Group manages the brands of Muhammad Ali, Shaquille O’Neal, and David Beckham.
In October, Iverson was appointed as the vice president of Basketball for Reebok, with Shaquille O’Neal being named president. In the role, Iverson will “drive player recruitment, grassroots and community-based initiatives and athlete activations,” such as the Iverson Classic high school basketball showcase.
“We’re taking two of the most iconic athletes for Reebok, with one signing in ’92 [O’Neal] and the other in ’96 [Iverson], and instead of just having them be athletes that we give product to today or consult with us, we’re putting them in real management roles. This is a movement that really hasn’t happened in our industry,” Reebok CEO Todd Krinsky told Footwear News. “We’ve got legacy athletes, 20-plus year relationships, and we’re putting them in positions of management to help us in the boardroom and to catapult the brand.”
About the Author:
Ian Servantes is a Senior Trending News Editor for Footwear News specializing in sneaker coverage. He’s previously reported on streetwear and sneakers at Input and Highsnobiety after beginning his career on the pop culture beat. He subscribes to the idea that “ball is life” and doesn’t fuss over his kicks getting dirty.
