Why Mike Tyson Filed For Bankruptcy

May 2024 ยท 1 minute read

By 2003, the chickens had come home to roost for Mike Tyson. Unable to sustain a comeback without some incident (and/or shameful high-profile loss) getting in the way, the millions Iron Mike had earned had almost vanished, and in August 2003, he filed for Chapter 11 bankruptcy at the United States Bankruptcy Court in Manhattan. Over a career that had, at that time, spanned close to two decades, Tyson had made approximately $400 million, but as it turned out, he was spending money just as fast as he earned it, something that may have been especially troublesome as his career went into decline and the marquee bouts dried up.

As reported by The New York Times, Tyson was in debt to the tune of more than $27 million when he filed for bankruptcy, and his list of creditors included the I.R.S. ($13.4 million), British tax officials ($4 million), seven law firms (cumulatively $600,000), former trainer Stacey McKinley ($800,000), and financial manager Barry Hankerson ($500,000). He also owed close to $52,000 in child support to Kimberley Scarborough, who had a daughter with Tyson in 1991. The boxer's assets were nothing to sneeze at, as they were valued between $10 million and $50 million, but when you're almost $30 million in debt, bankruptcy is sadly the best solution.

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