In the News
A breaking Yahoo Sports news report has revealed that Allen Iverson, the Philadelphia 76ers basketball player who was an 11 time all-star in the NBA, has been ordered to pay over $860,000 for jewelry he recently bought, and he wasn’t able to cover the amount. He now is facing bankruptcy. All of this despite making $154 million during his professional career in the NBA that began in 1996.
A Georgia judge has reportedly ordered that Iverson’s bank accounts be garnished to pay for the jewelry. Some have suggested that Iverson has gone from a famous wealthy athlete to a deadbeat overnight. Deadbeat is often a term associated with people who file bankruptcy to protect their assets from creditors.
Filing a bankruptcy would immediately stop collection activities like garnishment of wages and bank accounts. Currently, there is no evidence Iverson has yet filed for bankruptcy.
Potential Causes for Iverson’s Financial Decline
According to an article placed on the Yahoo Sports website, “Iverson felt he owed his childhood friends from the old neighborhood because “They made me.” The feeling was, without them protecting him from the mean streets, he would have never made it to the NBA.”
Iverson is known to travel with one of the largest entourages accompanying a professional athlete. It is not unusual for professional athletes to have friends and families accompany them when they are at home or sometime on the road. Most of Iverson’s entourage is made up of his childhood friends.
According to Bill Lyon of the Philadelphia Inquirer, “Iverson has had as many as 50 people attend Sixers home games, and has also taken a hair stylist on the road with him. He likes to buy expensive jewelry for himself and his Mother, Ann Iverson.”
Iverson’s Potential Future
At the end of a great career, it is rumored Iverson may play outside the United States in order to make more money to cover his debts. According to the Yahoo Sports news article on Iverson, the Los Angeles Lakers may still have an interest in him. He would more likely make more money outside the United States, but only time will tell what he will do.
Whether or not filing for bankruptcy is in Iverson’s future will most likely depend on his success in staying active in basketball. Filing bankruptcy is an option for the basketball star to stop his garnishment and provide him enough time to reorganize his finances if he continues to work.
Statistics on NBA Players Going Broke
Many famous people including famous athletes have had to file for bankruptcy protection. According to an article posted on the Business Insider website, 60% of NBA players go broke within 5 years after their retirement.
Some suggest the players who go broke, most of which have not been used to handling the amount of money they make in the NBA, do so because they ultimately trust others to handle their new found wealth, or they lavishly spend money on their friends an family until the money is gone.
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