As he gears up for his fight with Jake Paul, Mike Tyson’s legacy will have a small taint due to his poor financial decisions that led to his debt.

Mike Tyson is all set to step into the ring once again, with a fight against Jake Paul on November 15. The much-anticipated fight was set to take place back in July but had to be postponed due to Tyson’s injury. Tyson will be stepping into the ring after four years, with his last match being against Roy Jones Jr.

Tyson was one of the highest-paid athletes in the world at the peak of his career. The boxer reportedly earned over $400 million from bouts alone when he was the undisputed champion. However, a series of poor financial decisions and being taken advantage of by his promoter led to Tyson being completely broke and declaring bankruptcy.

Mike Tyson Earned More Than $400 Million At The Peak Of His Career

Mike Tyson | Credits: Fox News

Mike Tyson is still regarded as one of the all-time greats despite retiring back in 2005. He was the youngest heavyweight champion in the boxing category at the age of 20 and remained the undisputed champion for three years. He was undefeated for a long time and won his first nineteen rounds via knockout.

Tyson’s skill and popularity regularly netted him incredible paydays. The boxer reportedly earned a purse of $1.5 million in his first title fight against Trevor Berbick (via Celebrity Net Worth). He reportedly earned increasing amounts due to his presence boosting pay-per-view sales, and his highest payday was $103 million in a bout against Lennox Lewis.

Mike Tyson | Credits: Nehrams2020 / CCA by SA 3.0 / Wikimedia Commons

Tyson’s bouts regularly netted his salaries in the millions, with even his 2020 bout against Roy Jones Jr. paying him $10 million. According to The New York Times, Tyson’s earnings at the peak of his career amounted to more than $400 million. However, the boxer lost most of his earnings due to his lavish lifestyle and was in debt of more than $27 million.

In 2003, the boxer reportedly filed for bankruptcy after losing most of his earnings (via NYT). The actor was also arrested and sentenced to prison in the ‘90s for six years on charges of r*pe (via The New York Times). While he made a comeback after his release, the boxer seemed to have lost his mojo by 2005 and retired from the sport (via BBC).

Mike Tyson Went Broke After Spending His $400 Million Fortune

Mike Tyson | Credits- Instagram/@miketyson

While he reported earnings of over $400 million in twenty years, Mike Tyson reportedly lost most of it due to his lavish spending habits. The boxer was reportedly in a $27 million debt and owed multiple entities hundreds of thousands of dollars, including the IRS. According to the New York Times, he also faced multiple lawsuits from various collaborators and partners.

Tyson reportedly spent millions on cars and real estate, as well as spent lavishly on gifts for his friends and family. His famous Bengal Tigers reportedly cost him $70,000 each and he spent $125,000 a year for an animal trainer. He reportedly paid a staff member $300,000 a year just to shout ‘guerilla warfare’ in his press conferences (via CNW).

While much of his earnings were reportedly embezzled by his promoter Don King, Tyson’s lavish spending also contributed to his bankruptcy. He mentioned in an affidavit (via Afrotech),

I have been in financial distress since 1998, when I was burdened with substantial debt to Showtime, taxing authorities, and parties to litigation. Since that time, although my fight income, various asset sales, and litigation recoveries have enabled me to pay a lot of my debt, I am still unable to pay my bills.

Mike Tyson has since bounced back in increased pubic appearances and other ventures. His net worth currently stands at $10 million. He will reportedly be earning $20 million for his bout with Jake Paul (via Sporting News).