Mike Tyson will have to fight -- and fight often -- to get out of
debt, despite the prospect of a $14 million payment from Don King
to settle his claims against the promoter.
Tyson will drop his $100 million suit against King in exchange
for the payment, but the former heavyweight champion will see none
of the money. It will go toward paying some $38.4 million Tyson
owes to various creditors, the Internal Revenue Service and his
To pay off the rest, Tyson's attorneys have laid out a plan in
federal bankruptcy court in New York under which Tyson will fight
seven times over the next three years. The plan is ambitious, if
only because Tyson has fought only twice in the last three years
for a total of about eight rounds.
The first of those fights will be formally announced Tuesday at
a news conference in Louisville, Ky. Tyson will take on unheralded
Danny Williams on July 30 at Freedom Hall in a bout that will earn
him several million dollars to help satisfy his debts.
Assuming Tyson, who will be fighting for the first time in 17
months, beats the British journeyman, he could fight again as soon
as the fall. That could be against the likes of light heavyweight
champion Antonio Tarver or Lamon Brewster, who holds the lightly
regarded WBO heavyweight title.
"He wants to put the past behind him and believes he can be
champion again," Tyson's manager, Shelly Finkel said. "And that
would be a great story."
The other part of Tyson's story is well-known. The most feared
boxer of his time, he spent three years in prison for rape and
squandered some $300 million in purses over the years.
At the age of 38, he's broke and living in a small house in
Phoenix, where he's in training. His two homes in Las Vegas are up
for sale, with the proceeds already earmarked for the bankruptcy
court fund to pay his numerous debts.
The settlement with King is a key part of solving Tyson's
financial problems. If the bankruptcy judge approves, King will pay
$8 million up front, with another $3 million in January 2005 and $3
million more in January 2006.
Tyson had pinned his financial hopes on winning an even bigger
settlement in court on his claims that King stole some $100 million
from him while promoting Tyson after he got out of prison in 1995.
But although Tyson's attorneys were confident in their case,
they were concerned about how effective Tyson would be as a witness
on his own behalf during a trial and whether King could win a jury
over with charm.
For King, the settlement removes one more barrier between him
and his former fighter. Since King controls many of the top
heavyweights, there's a good possibility he will end up promoting
Tyson fights again.
Tyson, who once vowed never to fight for King again, said in an
interview last week that he wouldn't rule it out.
According to the plan filed Thursday in bankruptcy court in New
York, Tyson will contribute the $14 million from King, an estimated
$4.2 million from the sale of his two houses in Las Vegas, and
$19.5 million from future fight purses to a fund to pay creditors.
Tyson's first contribution will be a $2.475 million payment on
Aug. 4, followed by a $2.31 million payment next Jan. 5. The
biggest payment from the proposed series of seven fights will be in
January 2006 when Tyson pays $4.95 million.
The IRS is Tyson's biggest creditor, owed $18 million by the
former champion. He also owes taxes in several different states,
including $834,000 in Tennessee for his 2002 fight there against
Under the plan, Tyson will also pay Monica Tyson $9 million,
beginning with a $2.3 million payment when King makes his first
payment. Monica Tyson will also get $750,000 from each Tyson fight.
Tyson also owes millions to unsecured creditors, who will be
paid negotiated settlements totaling an estimated $10 million.
For King, the $14 million is the second big settlement he has
made with an ex-fighter in recent months. In December he agreed to
pay former 154-pound champion Terry Norris $7 million to settle a