Mike Tyson is the perfect example of how not to spend your money. While Tyson was a former heavyweight champion and boxing legend, he may go down in history for how he spent his money instead of how he earned it.
Despite Tyson’s nearly $400 million earnings over the past 20 years, he somehow managed to find himself bankrupt with over $23 million in debt in 2003. While Tyson was only 37 at the time, in the world of boxing, newer, younger boxers come along all the time and steal the spotlight. Things were not looking good for Tyson, who once commanded $30 million for one night of boxing. Not to mention that his future earnings and proceeds of his Connecticut mansion were already assigned to his $9 million divorce settlement.
So how, exactly, can someone blow through a $400 million stash? Quite easily when they’re spending a reported $400,000 a month to maintain their lifestyle. That’s right, from 1995 to 1997 Tyson spent over $9 million in legal fees, $230,000 on pagers and cell phones and $410,000 on a birthday party. Add that to the $8,100 bill for maintenance of his tigers and another $65,000 for limos and it’s easy to see how Tyson had no regard for price tags.
Tyson spent with the type of aggressiveness that once characterized his early round knockouts. According to court documents filed in the divorce case, he spent $400,000 a month to maintain his lifestyle. From 1995 to 1997, he spent $9 million in legal fees, $230,000 on pagers and cellphones, $410,000 on a birthday party. In June 2002, he owed $8,100 to care for his tigers and $65,000 for limos.
In addition to his outrageous spending, Tyson had debt problems with Showtime, tax authorities and various lawsuits. At one point, Tyson was not paying child support on one child and being charged a paternity suit over another.
Of his $23 million debt, some of his creditors included:
- The Internal Revenue Service for $13.4 million, and the British tax authorities for $4 million.
- Seven law firms, which were owed more than $600,000.
- A financial manager, who is owed $500,000.
- A music producer who is owed $450,000.
- One of Tyson’s former trainers, who sued to repay a debt of $800,000.
To learn more about famous and current bankruptcies visit our Rio Grande Valley bankruptcy lawyer blog at jeffdavislawfirm.com.
About the Author: Jeff Davis is the Owner of the Davis law firm and a highly experienced Brownsville bankruptcy attorney. To find out more information about a Rio Grande Valley bankruptcy lawyer, please visit www.jeffdavislawfirm.com.