Tyson faces long fight with various creditors

The former heavyweight champ will have to fight often to pay off his debt.
ASSOCIATED PRESS
Mike Tyson will have to fight -- and fight often -- to get out of debt, despite the prospect of a $14 million payment from Don King to settle his claims against the promoter.
Tyson will drop his $100 million suit against King in exchange for the payment, but the former heavyweight champion will see none of the money. It will go toward paying some $38.4 million Tyson owes to various creditors, the Internal Revenue Service and his ex-wife, Monica.
To pay off the rest, Tyson's attorneys have laid out a plan in federal bankruptcy court in New York under which Tyson will fight seven times over the next three years. The plan is ambitious, if only because Tyson has fought only twice in the last three years for a total of about eight rounds.
The first of those fights will be formally announced Tuesday at a news conference in Louisville, Ky. Tyson will take on unheralded Danny Williams on July 30 at Freedom Hall in a bout that will earn him several million dollars to help satisfy his debts.
May fight again in fall
Assuming Tyson, who will be fighting for the first time in 17 months, beats the British journeyman, he could fight again as soon as the fall. That could be against the likes of light heavyweight champion Antonio Tarver or Lamon Brewster, who holds the lightly regarded WBO heavyweight title.
"He wants to put the past behind him and believes he can be champion again," Tyson's manager, Shelly Finkel said. "And that would be a great story."
The other part of Tyson's story is well-known. The most feared boxer of his time, he spent three years in prison for rape and squandered some $300 million in purses over the years.
At the age of 38, he's broke and living in a small house in Phoenix, where he's in training. His two homes in Las Vegas are up for sale, with the proceeds already earmarked for the bankruptcy court fund to pay his numerous debts.
The settlement with King is a key part of solving Tyson's financial problems. If the bankruptcy judge approves, King will pay $8 million up front, with another $3 million in January 2005 and $3 million more in January 2006.
May reunite
For King, the settlement removes one more barrier between him and his former fighter. Since King controls many of the top heavyweights, there's a good possibility he will end up promoting Tyson fights again.
Tyson, who once vowed never to fight for King again, said in an interview last week that he wouldn't rule it out.
According to the plan filed Thursday in bankruptcy court in New York, 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.
Tyson's first contribution will be a $2.475 million payment on Aug. 4, followed by a $2.31 million payment next Jan. 5. The biggest payment from the proposed series of seven fights will be in January 2006 when Tyson pays $4.95 million.
IRS biggest creditor
The IRS is Tyson's biggest creditor, 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 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.
For King, the $14 million is the second big settlement he has made with an ex-fighter in recent months. In December he agreed to pay former 154-pound champion Terry Norris $7 million to settle a lawsuit.
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