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The GENIUS Clause in Allen Iverson’s Lifetime Reebok Deal · Earn Your Leisure

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  Speaker 1: All right.
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  Speaker 2: So I told you this is going to be nostalgic,
• 0:04
  Speaker 2: and part of that nostalgia was actually my favorite part
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  Speaker 2: of the show. When we first started. It was a
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  Speaker 2: segment that we had called Storytime. Storytime was a time
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  Speaker 2: that we used to do like case studies into interesting
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  Speaker 2: subjects and pop culture related to business, and we used
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  Speaker 2: to just break down like different interesting little tibbits and
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  Speaker 2: kind of break it down, explain you know it in detail,
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  Speaker 2: and you know, bring it back to how it's relevant
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  Speaker 2: to you know, business and stuff that you can learn from.
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  Speaker 3: It's fun.
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  Speaker 1: Yeah.
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  Speaker 4: Remember we came up with the idea and then trying
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  Speaker 4: to create a segment for it. I remember being like
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  Speaker 4: in the my office at work, like trying to piece
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  Speaker 4: worse kind of like, yo, we got to use that
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  Speaker 4: Noads clip, Like, kid's.
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  Speaker 3: A really story that must be told.
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  Speaker 4: Yeah, so to have it back do it again. Man,
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  Speaker 4: it's always fun. It's such fun.
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  Speaker 2: So in true Eyol fashion, if you listen on audio,
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  Speaker 2: this is strictly for audio, because we actually started on
• 1:01
  Speaker 2: audio before we're on YouTube. So audio were about to
• 1:04
  Speaker 2: run it, about to run a nas clips and uh,
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  Speaker 2: let's get in the storytell all right, So for this one,
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  Speaker 2: we're gonna talk about like one of the.
• 1:14
  Speaker 1: Goats in the game. Man the question and the answer.
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  Speaker 2: Shout out to Alanson, Bubba Chuck, the question, the answer
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  Speaker 2: goes by so many different names, Ai, and Uh, somebody
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  Speaker 2: who I actually had the honor of meeting. Yeah, shout out.
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  Speaker 2: Shout out to my brother Al Harrington. Man, that was
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  Speaker 2: a huge, huge, you know, if anybody, if you know me,
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  Speaker 2: you know I'm a huge, huge sports fanatic, play basketball
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  Speaker 2: my whole life. And Alan Iverson was one of my
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  Speaker 2: you know, greatest inspirations, one of my favorite players of
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  Speaker 2: all time. Somebody who I always you know, just held
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  Speaker 2: in such high regards since he was in Georgetown.
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  Speaker 4: There's nothing like the Georgetown Yeah, George, shout out to
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  Speaker 4: Shout out to the whole team.
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  Speaker 3: Man, I think I got the start five page.
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  Speaker 2: Factor page a legend, faked pages, Legendary Williams, Jeron Williams, Junkyard,
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  Speaker 2: Dog Harrington, Othella Harrington, that's legend.
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  Speaker 3: Carolina, that's Carolina.
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  Speaker 2: That was what I was a great team, The North
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  Speaker 2: Carolina team, well, the Georgetown team that was. That was
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  Speaker 2: the hell of a team. But shout out to Ai.
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  Speaker 2: So long story short.
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  Speaker 1: Legend in the game.
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  Speaker 2: Yes, so, but we're gonna talk about you know, some
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  Speaker 2: financial uh.
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  Speaker 1: Situations with him.
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  Speaker 2: So he has one of the dopest creative deals in
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  Speaker 2: history with Reebok. You know, a lot of people you
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  Speaker 2: know he signed with Reebok, came out with the you
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  Speaker 2: know the question, the question was the first shoot to
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  Speaker 2: answer was the second shoe. Shout out to Steve Stout
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  Speaker 2: put together that commercial for Jadakiss. That was a legendary commercial,
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  Speaker 2: probably one of the best commercials of all time. But
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  Speaker 2: you know he's still getting paid from Reebok to this day.
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  Speaker 3: Yeah, I think he was. I've never heard of that
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  Speaker 3: prior to him getting that lifetime deal. The lifetime we
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  Speaker 3: grew up in Sneaker Coach.
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  Speaker 4: Obviously, Jordan was huge, Penny had had his kids, Graven
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  Speaker 4: Greenhill had Eli Rocket, but Rebok gave shotgat rebox too.
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  Speaker 3: Let's not forget shock.
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  Speaker 4: As far as the Kicks, shout to my man and
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  Speaker 4: Patrick Ewing does not disrespect my Jamaicans.
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  Speaker 3: Shout out to New York. Everybody in New York. You know,
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  Speaker 3: y'all had to pay yunans.
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  Speaker 4: But nobody had a lifetime deal like I couldn't even
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  Speaker 4: understand it.
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  Speaker 3: What does that mean?
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  Speaker 4: Like he is in two thousand and one, Like I
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  Speaker 4: think he sends this deal and it's like he's good for.
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  Speaker 3: The rest of his life. I'm like, well, he's not
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  Speaker 3: playing ball for the rest of his life.
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  Speaker 1: Like what yeah.
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  Speaker 3: So, and.
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  Speaker 2: When he first came in the league in nineteen ninety six,
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  Speaker 2: he signed a fifty million dollar believe fifty million dollar
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  Speaker 2: deal or rebot ten year deal and at the time,
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  Speaker 2: you know, that was crazy. He put out the shoot
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  Speaker 2: that went that w wasn't crazy, and uh, you know
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  Speaker 2: it's so ironic because I think his last game that
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  Speaker 2: he played was.
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  Speaker 1: Two two, ten, ten, twenty twelve.
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  Speaker 2: Years bro, Yeah, twelve twelve years after he over a decade.
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  Speaker 2: So he has in his contract, in newer contract that
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  Speaker 2: he signed payments of eight hundred thousand dollars a year. So,
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  Speaker 2: you know, a lot of times obviously people know that
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  Speaker 2: he fell on some you know, some hard times out
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  Speaker 2: of the divorce, I believe, but then he got remarried.
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  Speaker 2: But no issues. You know, people always have issues. So
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  Speaker 2: but you know, that's one of the things where it's
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  Speaker 2: like he had the foresight and his advisors had the
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  Speaker 2: foresight to put that together and have eight hundred thousand
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  Speaker 2: dollars a year. He's still getting paid eight hundred thousand
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  Speaker 2: dollars a year. So it's like, even if you blow everything,
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  Speaker 2: you know, you still, at the very least you're gonna
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  Speaker 2: have almost a million dollars when you wake up, you're.
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  Speaker 3: Still putting out the shoe.
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  Speaker 4: Like they're putting up limited editions of the shoe. I
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  Speaker 4: think this year's edition is going to be an ode
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  Speaker 4: to the ninety six draft class. So everybody in the lottery,
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  Speaker 4: a color from their team is going to be on
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  Speaker 4: the new shoe.
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  Speaker 1: Yeah.
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  Speaker 2: But another probably even better than that, is he has
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  Speaker 2: a thirty two a million dollar trust that he can't
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  Speaker 2: access until he turns fifty five. To believe, that's year
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  Speaker 2: twenty thirty.
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  Speaker 1: So when he.
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  Speaker 2: Turns fifty five, he has thirty two million dollars in
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  Speaker 2: a trust from Reebok. So you know, that was a
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  Speaker 2: you know what we call in the insurance world idea
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  Speaker 2: the third annuity, the thurred income annuity, where you put
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  Speaker 2: you know, a set amount of money away and it grows.
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  Speaker 1: Over the period of time.
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  Speaker 2: It's kind of like a lock up period and you
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  Speaker 2: can't actually have access to it unto a certain period
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  Speaker 2: of time and then when you do have access, now
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  Speaker 2: you can choose different ways how you can choose, but
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  Speaker 2: most people choose like another lifelong payout where it's like
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  Speaker 2: to do a calculation based off of your age and
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  Speaker 2: now you know, let's say that thirty two million will
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  Speaker 2: equate to you know, one point five million dollars for
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  Speaker 2: the rest of your life. Somebody else who had, you know,
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  Speaker 2: a similar type of contract like that, the legendary Bobby Bonia.
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  Speaker 1: We've covered that story, Bobby Bode.
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  Speaker 2: Yeah, or Bali Bona another one that had that insight.
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  Speaker 2: So it's like, you know, that is tremendous insight. Like
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  Speaker 2: I said of on his advisors, whoever set that up
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  Speaker 2: for him. Definitely, you know, great, great insight. Whereas, Okay,
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  Speaker 2: you might have had some financial troubles. You might have
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  Speaker 2: you know, might have not made the best decisions financially,
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  Speaker 2: but a you still have a salary every year pretty
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  Speaker 2: much up eight hundred thousand dollars. But even bigger than that,
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  Speaker 2: you got thirty two million that's waiting for you when
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  Speaker 2: you turn fifty five, like at the age when you
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  Speaker 2: probably need it the most. And now that's that's a
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  Speaker 2: deferred annuity that's you know, growing over the course of time,
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  Speaker 2: and that's just going to set you up for the
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  Speaker 2: rest of your life.
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  Speaker 3: Yeah, I mean the division.
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  Speaker 4: I mean the person obviously devised everybody obviously probably looked
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  Speaker 4: at his financial statements going up unto that point and said,
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  Speaker 4: let's protect him. Let's put these barriers in place to
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  Speaker 4: protect him.
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  Speaker 3: So the annual.
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  Speaker 1: Salurly, I know, it probably wasn't even rebod though it's
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  Speaker 1: probably outside.
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  Speaker 4: Yeah, yeah, because I'm thinking like eight hundred thousand at
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  Speaker 4: that time, when he's made in a couple million, probably
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  Speaker 4: almost nearly every two or three games, it didn't feel
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  Speaker 4: like a lot. But when you stop playing and life
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  Speaker 4: stows down for you a little bit, the endorsement deals
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  Speaker 4: that you used to get slow down a little bit
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  Speaker 4: to have the eight hundred, it's like, all right, bet,
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  Speaker 4: I don't even have to play ball. I don't have
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  Speaker 4: to like I could just chill somewhere and collect eight hundred. Yeah,
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  Speaker 4: that's incredible. So the thirty two million that grows over
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  Speaker 4: the time, how.
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  Speaker 3: Does that work?
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  Speaker 1: Well, that's what it's projected to be.
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  Speaker 3: It's projected there.
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  Speaker 2: Yeah, so it might have it might have put in,
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  Speaker 2: you know, fifteen million. Whenever they started, it might have
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  Speaker 2: been ten million. So it's invested over a period of time,
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  Speaker 2: and now at that period of time, that's what it
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  Speaker 2: will be at that.
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  Speaker 1: Period of time.
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  Speaker 2: It could be more well, so it's it's based off
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  Speaker 2: an actuary, so yeah, it could be more depending but
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  Speaker 2: you know, for most of the time, like it'll it'll
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  Speaker 2: be a set number based off of a calculation. So
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  Speaker 2: it'll be let's say, and that's why it's done on
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  Speaker 2: like on an annuity schedule. So if it's a ten
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  Speaker 2: million and let's say it's invested, you know, and it's
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  Speaker 2: earning six percent, but they are newity calculation is four percent,
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  Speaker 2: so they're going to guarantee the four percent. So now
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  Speaker 2: it's like, all right, guaranteeing you that at this point
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  Speaker 2: in time. And that's why most of the time you
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  Speaker 2: take it off of an income. So it's kind of
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  Speaker 2: like how a pension works. For that make it as
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  Speaker 2: easy to understand as possible because most people can wrap
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  Speaker 2: their heads around a pension. So you know, if you
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  Speaker 2: work a pension, it's like, all right, if you work
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  Speaker 2: this amount of years, you get a percentage of your salary.
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  Speaker 2: So that's how they can say, Okay, in ten years,
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  Speaker 2: you're going to have a million dollars in your pension.
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  Speaker 3: Yeah.
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  Speaker 4: I think like in the teacher world, they take the
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  Speaker 4: average of your last three and then give you like
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  Speaker 4: sixty seven percent of that or something like that.
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  Speaker 2: But the Deferd annuity is something that anybody can really do.
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  Speaker 2: It the Ferd annuity idea, and there's something that you
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  Speaker 2: can do if you especially if you have a lump
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  Speaker 2: sum of money at a young age. So a lot
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  Speaker 2: of athletes are entertainers, right, So this is something that
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  Speaker 2: athletes can can use as a strategy outside of a company.
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  Speaker 2: You can do it yourself. So if you sign you know,
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  Speaker 2: ten million dollar you know signing bonus, if you're in
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  Speaker 2: the NFL, like, you can take two million dollars and
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  Speaker 2: just put it in the dea and just have it
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  Speaker 2: just sitting for fifteen twenty years, growing over the course
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  Speaker 2: of time, and then when it's time and take it
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  Speaker 2: now you might have you know, fifteen million dollars that
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  Speaker 2: you're just drawing a lifetime income off of. So that's
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  Speaker 2: that's the strategy that you know, you can use over
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  Speaker 2: the course of time as a safe way, and especially
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  Speaker 2: like if you don't really trust yourself and say, I
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  Speaker 2: a't even worrying about this. I'm just going to lock
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  Speaker 2: it up, give it to the insurance company. It's going
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  Speaker 2: to grow by the time I turn fifty. Now I'm
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  Speaker 2: going to start taking money. And now that's something that
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  Speaker 2: you just set yourself up for life and you don't
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  Speaker 2: even have to worry about it. Not just athletes, but
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  Speaker 2: I just use athletes because you know, they get lump
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  Speaker 2: sums of money. They get a large amount of money
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  Speaker 2: when they're young. But anybody that comes into you know,
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  Speaker 2: good fortune, if you know, yeah, that's it. That's the entrepreneurs.
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  Speaker 2: If you get a win fall of money, you know,
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  Speaker 2: early on, and you're not sure what to do with it,
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  Speaker 2: you might want to take a portion of that, put
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  Speaker 2: it in the dea, let it grow over the course
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  Speaker 2: of time. Now you set yourself up for a lifetime income.
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  Speaker 3: Yeah.
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  Speaker 4: I'm thinking two things as you're speaking right, Like the
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  Speaker 4: last part of what you just said, like if we
• 10:01
  Speaker 4: don't know what to do with it, well we know
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  Speaker 4: what happens.
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  Speaker 3: We don't we don't know what to do with it.
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  Speaker 3: We spend it all right, And I'm thinking The other.
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  Speaker 4: Part is like, yeah, AI did this deal in two
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  Speaker 4: thousand and one, how many athletes has he come in
• 10:12
  Speaker 4: contact with?
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  Speaker 3: Go or I've heard about this deal that haven't taken.
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  Speaker 4: Advantage of it, right, Like you don't you hear a
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  Speaker 4: guy story, but you don't hear anybody else that's doing this.
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  Speaker 3: Right, this makes perfect sense, man, Like.
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  Speaker 4: Y'all gonna you're gonna be older a lot longer than
• 10:25
  Speaker 4: you're gonna be younger, and especially some of these guys
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  Speaker 4: where an injury can change your financial trajectory that quick,
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  Speaker 4: or some a life incident could change your lifetime trajectory
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  Speaker 4: of income. It's like, yeah, you should be planning. This
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  Speaker 4: is gonna change the game. I think it's gonna you
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  Speaker 4: change the game just.
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  Speaker 2: Now, probably at the studio and change the game again.
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  Speaker 2: So shout out to AI, Bubba Chuck. We got to
• 10:48
  Speaker 2: get him on the podcast. He got a new strand
• 10:50
  Speaker 2: with Viola.
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  Speaker 4: Yeah yeah, so listen, listen, what's camera I in? Hey
• 10:56
  Speaker 4: y'all you got one there?
• 10:58
  Speaker 1: Shout out to AI.
• 10:59
  Speaker 2: I've heard and congratulations much success and yeah, look into
• 11:03
  Speaker 2: the DA something that is to look into for sure.
• 11:07
  Speaker 2: My graduates from my school being false back drop back
• 11:12
  Speaker 2: drop or my drop back drop, drop