How Did Mike Tyson Lose His $400 Million Fortune?
During the early years of Mike Tyson’s boxing career, he did the seemingly impossible. Able to win his first 19 fights by knockout, Tyson finished twelve of those matches in the first round, which was mind-blowing.
Since Tyson’s record was unbelievable, he earned the right to fight for the Undisputed World Heavyweight Championship. After prevailing, Tyson held the title from 1987 until 1990 and he won a title again in 1996 and remained champion for months.
At the height of Tyson’s boxing career, he was a household name who was so famous that a video game was named after him. Between opportunities like that and the huge paydays he got for boxing, Tyson once was worth a staggering $400 million.
After amassing that incredible fortune, Tyson went on to struggle financially for many years. Eventually, Tyson’s financial picture became so dire that he had no choice but to declare bankruptcy in 2003. Of course, other stars like Pamela Anderson have gone broke, but Tyson lost his fortune in truly remarkable ways.
First off, the most infamous way that Tyson lost his money is through his incredible spending habits. Tragically, lots of athletes who make millions have never been taught to be financially responsible and that was the problem for Tyson as he spent like money was never going to stop coming in.
Arguably the most memorable and extravagant way that Tyson spent his money was on a bathtub. During Tyson’s marriage to Robin Givens, he bought her a bathtub made out of 24-karat gold that reportedly cost him $2.2 million.
Tyson also reportedly spent $210,000 on Siberian tigers, $400,000 on trained pigeons, and $300,000 on landscaping. That is to say nothing about Tyson’s $22 million mansion as well as the fact that Tyson says he spent $100,000 a month on jewelry and $300,000 annually on partying.
Unsurprisingly, Tyson had an incredibly expensive car collection just like many other celebrities. According to reports, Tyson bought at least 111 different cars over the years including many that were extremely expensive.
Among the cars Tyson bought are a limited edition Bentley Continental SC, which was one of just 73 ever made, as well as several Ferraris, Lamborghinis, Rolls Royces, and more. Tyson also reportedly bought 19 expensive cars for his friends as well. All told, Tyson reportedly spent $4.5 million on cars.
Unfortunately for Tyson, there was another factor that played a major role in his serious money problems. In the years since Tyson became a world-famous boxer, he has been sued way too many times and had to pay out a lot of money because of that.
In 1995, Tyson was sued by a woman named Desiree Washington. In her lawsuit, Washington accused Tyson of several misdeeds including battery, false imprisonment, and emotional distress. Ultimately, Tyson reached an out-of-court settlement with Washington for an undisclosed amount.
Three years later in 1998, Tyson yet again was sued by people who claimed they’d been hurt by the former boxing champion. After Abmielec Saucedo accused Tyson of punching him in the face and Richard Hardick said the former boxer kicked him in the groin, they sued. Ultimately, Tyson and the two men also reached an out-of-court settlement for an unknown amount.
Tyson’s legal troubles continued when he was sued by Sherry Cole and Chevelle Butts in the year 2000. After accusing Tyson of touching them without consent, the two women sued him, and they also reached an agreement with him that was kept private.
While there is no way to know how much money Tyson lost between those three lawsuits, there is every reason to assume it was a significant figure. As a result, those lawsuits almost certainly played a role in the former boxer declaring bankrupt in 2003.
Did Mike Tyson Make His Lost Money Back?
After Mike Tyson went from having a $400 million fortune to bankrupt, he had a lot of reasons to think his financial picture would never improve. However, like a lot of other people who go bankrupt, Tyson has been able to rebound financially.
While Tyson’s current fortune isn’t even close to $400 million, Celebrity Net Worth reports that he has a $10 million fortune as of this writing. Given how poorly things were going for Tyson at one point, he has to be overjoyed that his financial picture appears to be stable now.
As for how Tyson’s finances recovered, the most basic thing the former boxer did is dramatically change his lifestyle. Long gone are the days when Tyson was buying multi-million dollar bathtubs and more than 100 cars.
Another major factor in Tyson’s financial health is that he has managed to find several consistent revenue streams. For example, since Tyson showed up in The Hangover, he has landed a slew of different acting roles including starring in the show Mike Tyson Mysteries.
Tyson has also launched a podcast which has become a major source of income for him. Because of his podcast, Tyson was able to market a T-shirt to his listeners that has made him so much money he can barely believe it.
“They’re selling off the rack. I can’t believe I’m gonna be a wealthy guy off a f***ing shirt. A f***ing shirt!”