The GENIUS Clause in Allen Iverson’s Lifetime Reebok Deal

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2:04Thy ticket, Lady Jennifer of Coolidge. Well, many thanks, good sir. Here is my Discover card. They accept Discover at Renaissance Fairs? Yeah, they do here. Discover is accepted at the places that I love to shop. Get it? With the times. With the times? You're playing the lute. Yeah, and it sounds pretty good, right? Discover is accepted at 99 % of places that take credit cards nationwide. Based on the February 2025 Nielsen Report. All right, so I told you this is going to be nostalgic. and part of that nostalgia was actually my favorite part of the show when we first started. It was a segment that we had called Storytime.

2:49Storytime was a time that we used to do case studies into interesting subjects in pop culture related to business. And we used to just break down different interesting little tidbits and kind of break it down and explain it in detail and bring it back to how it's relevant to business and stuff that you can learn from. It was fun. It was fun. I remember we came up with the idea and then trying to create a segment for it. I remember being in my office at work, trying to piece words together. Like, yo, we got to use that Nas clip. Here's a real story that must be told. So to have it back, do it again, man, it's always fun.

3:30It's always fun. So in true EYL fashion, if you listen on audio, this is strictly for audio because we actually started on audio before we were on YouTube. So, audio, we about to run it. About to run a Nas clip. And let's get into story time. All right. So, for this one, we're going to talk about. Legend. One of the goats in the game, man. The question and the answer. Shout out to Allen Iverson. Bubba Chuck. Bubba Chuck. The question and the answer goes by so many different names. AI. And somebody who I actually had the honor of meeting. 21 has been a crazy year. Yeah. Yeah, shout out to my brother Al Harrington, man.

4:07That was a huge, huge, you know, if you know me, you know I'm a huge, huge sports fanatic. Played basketball my whole life. And Allen Iverson was one of my, you know, greatest inspirations, one of my favorite players of all time. Somebody who I always, you know, just held in such high regard since he was in Georgetown. There's nothing like the Georgetown, yeah. Yeah, yeah, yeah. That Georgetown, yeah, with the patent leather Jordan. Shout out to all. Nothing like it. Shout out to that whole team, man. I think I got the starting five. Victor Page Victor Page a legend Victor Page is legendary Jerome Williams Jerome Williams Junkyard Dog Othello Harrington Othello Harrington that's legend I'm missing somebody Nakti Injai was it?

4:46No no that is North Carolina that's North Carolina that was a great team the North Carolina team? well that team was great the Georgetown team that was a hell of a team that was a great team but shout out to AI so long story short Allen Robinson a legend in the game yes so but we're gonna talk about you know some financial situations with him. So he has one of the dopest creative deals in history with Reebok. You know, a lot of people know he signed with Reebok, came out with the question. The question was the first shoe. The answer was the second shoe. Shout out to Steve Stout, put together that commercial for Jadakiss.

5:25That was a legendary commercial, probably one of the best commercials of all time. But, you know, he's still getting paid from Reebok to this day. Yeah, I think he was the – I never had heard of that prior to him getting that lifetime deal. The lifetime deal, yeah. We grew up in sneaker culture. Obviously, Jordan was huge. Penny had his kicks. Even Granhill had Feli Rockin'. But Reebok gave – Shaq had Reeboks too. Let's not forget Shaq as far as the kicks. Shout out to my man Patrick Ewan. Let's not disrespect my Jamaicans. Shout out to New York. Everybody in New York, y 'all know y 'all had a pair of Ewans.

5:55But nobody had a lifetime deal. Like, I couldn't even understand it. What does that mean? Like, he is, in 2001, like, I think he signs his deal, and it's like, he's good for the rest of his life. I'm like, well, he's not playing ball for the rest of his life. Like, what? Yeah, so, and when he first came in the league in 1996, he signed a$50 million, I believe,$50 million deal, where we bought a 10-year deal. And at the time, you know, that was crazy. He put out the shoe. That went crazy. and you know it's so ironic because I think his last game that he played was 2010 2010 well 12 years bro yeah 12 years after he over a decade so he has in his contract his newer contract that he signed payments of $800 ,000 a year so you know a lot of times obviously people know that he fell on some you know some hard times had a divorce i believe but then he got remarried but no issues you know people always have issues so but you know that's one of the things where it's like all right he had the foresight and his advisors had the foresight to put that together and to have eight hundred thousand dollars a year he's still getting paid eight hundred thousand dollars a year so it's like even if you blow everything you know you still at the very least you're gonna have almost a million dollars when you wake up um they're putting out the shoe like they putting out limited editions of the shoe i I think this year's addition is going to be an ode to the 96 draft class.

7:24So everybody in the lottery, a color from their team is going to be on the new issue. Yeah, but another, probably even better than that, is he has a$32 million trust that he can't access until he turns 55. So I believe that's year 2030. So when he turns 55, he has$32 million in a trust from Reebok. So, you know, that was a, you know, what we call in the insurance world, a DEA, deferred income annuity, where you put, you know, a set amount of money away and it grows over a period of time. It's kind of like a lockup period and you can't actually have access to it until a certain period of time. And then when you do have access now, you can choose different ways how you can choose, but most people choose like another lifelong payout where it's like to do a calculation based off of your age and now you know let's say that 32 million will equate to you know 1.5 million dollars for the rest of your life somebody else who had you know a similar type of contract like that the great the legendary bobby bonia we've covered that story bobby bobby bode yeah for sure um bobby bonia another one that that had that insight so it's like you know that is tremendous insight like i said of on his advisors whoever set that up for him definitely you know great great insight whereas okay you might have had some financial troubles you might have you know uh might have not made the best decisions financially but a you still have a salary every year pretty much of eight hundred thousand dollars but even bigger than that you got 32 million that's waiting for you when you turn 55 like at the age when you probably need it the most and now that's that's a deferred annuity that's you know growing over the course of time and that's just going to set you up for the rest of your life.

9:15Yeah, I mean, the vision. I mean, the person, obviously, the advisor at Reebok, obviously probably looked at his financial statements going up until that point and said, let's protect him. Let's put these barriers in place to protect him. So the annual salary, I know. It probably wasn't even Reebok, though. It was probably outside the advisors, yeah. Yeah, because I'm thinking like$800 ,000 at that time when he's making a couple of million, probably almost nearly every two or three games. It didn't feel like a lot, but when you stop playing and life stoles down for you a little bit, the endorsement deals that you used to get slow down a little bit to have the 800 is like all right bet i don't even have to play ball i don't have to like i could just chill somewhere and collect 800 yeah that's incredible so the 32 million that grows over the time how does that work well that's what it's projected to be so yeah so it might have it might have put in you know 15 million whenever they started it might have been 10 million so it's invested over a period of time and now at that period of time that's what it will be at that period of time But it could be more.

10:14Well, so it's based off of an actuary. Okay. So, yeah, it could be more depending. But, you know, for most of the time, like, it'll be a set number based off of a calculation. So it'll be, let's say, and that's why it's done on, like, on an annuity schedule. So if it's a$10 million and let's say it's invested, you know, and it's earning 6%, but the annuity calculation is 4%. So they're going to guarantee the 4%. Okay. So now it's like, all right, we're guaranteeing you that at this point in time, and that's why most of the time you take it off of an income. So it's kind of like how a pension works.

10:48That makes it as easy to understand as possible because most people can wrap their heads around a pension. So, you know, if you work a pension, it's like, all right, if you work this amount of years, you get a percentage of your salary. So that's how they can say, okay, in 10 years, you're going to have a million dollars in your pension. Yeah, I think like in the teacher world, they take the average of your last three, and they give you like 67 % of that or something like that. But the deferred annuity is something that anybody can really do a deferred annuity idea and it's something that you can do if you, especially if you have a lump sum of money at a young age.

11:21So a lot of athletes or entertainers, right? So this is something that athletes can use as a strategy. Outside of a company, you can do it yourself. So if you sign, you know, a$10 million, you know, signing bonus, if you're in the NFL. Like, you can take$2 million and just put it in a deal and just have it just sitting for 15, 20 years, growing over the course of time, and then when it's time to take it now, you might have, you know,$15 million that you're just drawing a lifetime income off of. So that's a strategy that, you know, you can use over the course of time as a safe way, and especially, like, if you don't really trust yourself and say, I ain't even worrying about this.

11:58I'm just going to lock it up, give it to the insurance company. It's going to grow. By the time I turn 50, Now I'm gonna start taking money and now that's something that you just set yourself up for life And you don't even have to worry about it not just athletes But I just use athletes because you know they get lump sums of money They get a large amount of money when they're young but anybody that comes in that you know good fortune and You know yeah, and that's it. That's the entrepreneurs if you get a windfall of money at you know Early on and you're not sure what to do with it might want to take a portion of that put it in a deal Let it grow over the course of time now you set yourself up for a lifetime income Yeah, I'm thinking two things as you're speaking, right?

12:33Like the last part of what you just said, like if we don't know what to do with it. Well, we know what happens. We don't know what to do with it. We spend it, all right? And I'm thinking the other part is like, yeah, AI did this deal in 2001. How many athletes has he come in contact with or have heard about this deal that haven't taken advantage of it? You hear AI's story, but you don't hear anybody else that's doing this, right? This makes perfect sense, man. Like you're going to be older a lot longer than you're going to be younger. And especially some of these guys where an injury can change your financial trajectory that quick.

13:06Or a life incident could change your lifetime trajectory of income. It's like, yeah, you should be planning. This is going to change the game. I think it's going to. You changed the game just now. Probably. Hit the studio and change the game again. So shout out to AI, Bubba Chuck. We got to get him on the podcast. He got a new strand with Viola. Yes. Listen, listen. What's camera on my hand? Whoa. AI you got one there Shout out to AI I've heard And congratulations Much success And yeah Look into the deer Something to look into For sure My graduates from my school Being Forbes Backdrop Backdrop F*** a mic drop Backdrop Backdrop

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