How to lose $150 million in 10 years?

Question

http://sportsillustrated.cnn.com/2008/mma/06/05/holyfield.finances.ap/index.html

Answer 1

I think Evander has suffered from some degree of dementia for several years and that may have contributed to some of his money woes.  But the main problem with many athletes is they don't seem to understand that age will eventually rob them of their skills.  So they live high on the hog and keep spending as though those big paydays will keep on coming.  But they won't, and they don't.

If Evander got $150 million in purses, his handlers got a third of that, or $50 million.  Then he had to pay income taxes, so that was another $40 million.  That leaves $60 million.  Now let's cut those numbers in half because I don't think he earned $150 million in purses.  So he's down to $30 million.  The taxes and upkeep on a 54,000 s.f. house would easily take $1 million a year and divorce settlements, child support and other expenses could have cost him $10 million.  So he's down to $10 million, and it wouldn't be hard for a high liver to go through that in 10 years, particularly when he doesn't realize that the gravy train is slowing down.  Mike Tyson is in the same boat and still owes a reported $30 million in incomes taxes -- and you can't discharge federal income taxes in bankruptcy.  

I feel sorry for both Evander and Mike.  It's probably easy and fun to look down at where you came from when you strike it rich, but it must be terrible to look up at where you were when the **** has hit the fan and you can't do anything about it.

I wonder how many once rich athletes sit down at night and say "Oh why, why, why didn't I sock away $1 million a year when I was making all that money?"

Answer 2

Do you know if the bank would accept a Short Sale on that property instead of foreclosure?  It would keep the forclosure off that guys credit too, so he can waste money on another mansion in the future.  Looks like a nice place.  i'm getting my financing together now.  All the pets can even have their own room and I can get more.  What a deal!  Even has a pool for the crocodiles!

Answer 3

well first of all you have to understand that he got all this money over a period of 10 years.so i will tell you all the steps he took to lose all this money.

STEP 1.marry a women who only wants your money.(he did)

STEP 2.Buy a 10 million dollar home and fill it up with c**p you don't need and then pay the taxes for 10 years.(he did)

STEP 3.get a divorce from your wife and then watch her take half of your money.(he did).

STEP 4.buy 4 or 5 cars that are worth almost a million dollars each.(he did)

STEP 5.this is the killer.pay all your lawyers all your trainers and then pay your child support.(he did)

Most people don't understand that these guys are fighters not rocket scientist.they don't know how to handle that kind of money.sugar ray robinson died broke,,joe louis died so far in debt that his wife and kids were paying it off years after he died,mike tyson owed millions and millions to people because he let people take his money from him.

Answer 4

Poor money management period.

Answer 5

wow 109 rooms... why does anyone need a house that big?

He could have a bunch of people living there he doesn't know about LOL

I can't belive he makes all this money and only pays 3 grand in child support!!

Answer 6

I am going to answer this question with a question.  Why do you need a house with 109 rooms and 30 bathrooms?????  I guess this means that Commander Vander will still be lacing up the gloves in '08!!!!  I heard there is talk of Tyson-Holyfield III.  Now that is a true horror sequel!!!

Answer 7

call MC HAMMERS old financial advisor who works for evander now and he'll be able to explain. LOL

Answer 8

Hookers, then pretend my house was really expensive.

-bf jb nm