Don King received stock in MGM Grand when Tyson signed exclusive fight deal with hotel

Records reviewed by the Associated Press (AP) revealed that a deal was made between Don King Productions and the MGM Grand Hotel when ex-champion Mike Tyson signed a multimillion-dollar deal to fight at the Las Vegas hotel.

The 64-year-old promoter became a major stockholder in the MGM Grand when the hotel gave King a no-interest loan of $15 million to buy 618,557 shares of its stock at the time the Tyson deal was signed last May.

King risked no money of his own to obtain the stock, and MGM Grand guarantees the stock will be worth at least $30 million when Tyson's contract expires Sept. 25, 1997, according to Securities and Exchange Commission documents.

King refused to comment, but an investment banker did. "It's not the norm, but what with Don King is the norm?" Jon Schotz, president of Saybrook Capital Corp in Los Angeles, told AP.

Originally, Tyson was to wait until his fifth comeback fight to challenge for a title. But the need to salvage the former champ as an attraction after fights against the likes of Peter McNeeley and Buster Mathis Jr. forced King to move up the schedule.

This fight will be the second of the six-fight arrangement between Tyson and MGM, leaving the resort with four more Tyson fights.