Tyson plans to continue boxing in efforts to pay off $38 million of debt

Jet, July 19, 2004

Mike Tyson is boxing his way out of debt and the tour of seven fights in the next three years begins July 30 against Briton Danny Williams in Louisville, KY.

The 38-year-old Tyson is fighting for the first time in 17 months. If he beats Williams, he could be fighting again as soon as the fall.

Though this ambitious plan is a challenge for Tyson, his main fight has been outside the ring with his finances. The former heavyweight champion, who filed for bankruptcy last year, is $38.4 million in debt and was hoping his $100 million lawsuit against Don King would clear up his obligations to various creditors.

However, Tyson reportedly will drop his suit against King in exchange for the prospect of a $14 million payment from King to settle his claims against the promoter, pending an approval from the bankruptcy judge. In the suit, Tyson claims that King stole about $100 million from him while promoting Tyson after he got out of prison in 1995.

The settlement is a key part of solving Tyson's financial problems. To pay off the rest, Tyson's attorneys have recently laid out a plan in federal bankruptcy court in New York under which Tyson will fight the chain of bouts.

According to the plan, 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.

The IRS is Tyson's biggest creditor. According to reports, it is 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 Lennox Lewis.

Under the plan, Tyson will also pay ex-wife 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.