NHL'er Bankrupted by Parents Spending


tay
#1
On the morning of Oct. 7, two days before the Blue Jackets opened the 2014-15 season, Jack Johnson left his Ferrari parked in the garage of his Dublin apartment and drove his BMW to a federal courthouse Downtown to file for bankruptcy.


Johnson has earned more than $18 million during his nine-year NHL career, not including the $5 million he will be paid this season by the Blue Jackets.


Almost all of the money is gone, and some of his future earnings have already been promised — which is why Johnson, surrounded by a new team of financial advisers and an attorney, signed his financial surrender.


The scene was nearly four years in the making, after a string of risky loans at high interest rates; defaults on those loans, resulting in huge fees and even higher interest rates; and three lawsuits against Johnson, two of which have been settled and one that’s pending.


“I’d say I picked the wrong people who led me down the wrong path,” Johnson, a 27-year-old defenseman, told The Dispatch last week. “I’ve got people in place who are going to fix everything now. It’s something I should have done a long time ago.”


He has declined to comment further.




But sources close to Johnson have told The Dispatch that his own parents — Jack Sr. and Tina Johnson — are among the “wrong people” who led him astray financially.


In 2008, Johnson parted ways with agent Pat Brisson, who represents some of the National Hockey League’s biggest stars, including Sidney Crosby, Patrick Kane and Jonathan Toews.


With no agent and little knowledge of how the financial world works, Johnson turned over control of his money to his parents.


In 2011, in the weeks leading up to Johnson’s first big contract — a seven-year, $30.5 million deal signed with the Los Angeles Kings, under which he now plays for the Blue Jackets — Johnson signed a power of attorney that granted his mother full control of his finances.


Tina Johnson borrowed at least $15 million in her son’s name against his future earnings, sources told The Dispatch, taking out a series of high-interest loans — perhaps as many as 18 — from nonconventional lenders that resulted in a series of defaults.


The tangled web is one that The Dispatch has been investigating since the spring, and — according to court documents, NHL sources and sources with knowledge of the situation — involves a U.S. congressman from Iowa, the son of an oil baron in Texas and a former University of Michigan basketball star.


Because Johnson’s name is on the loans, he has been sued at least three times for more than $6 million for defaulting, as in the case of the mortgage on a house in Manhattan Beach, Calif. In court documents, Johnson says his parents bought the house with his money but without his knowledge.


Johnson’s parents allegedly each bought a car, spent more than $800,000 on upgrades to the Manhattan Beach property and traveled, often to see him play NHL games for the Kings and Blue Jackets.


“Jack would ask (his parents) questions: ‘What’s this? What are these guys calling about?’  ” a source said. “And they would tell him not to worry about it, just worry about playing hockey.


“These were his parents, right? He trusted them. It wasn’t until last spring or early summer that he understood there was a significant problem.”


In his bankruptcy filing, Johnson claims assets of “less than $50,000” and debts of “more than $10 million,” although sources say the debt could be in the neighborhood of $15 million.




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Blind-sided: Blue Jackets’ Jack Johnson is bankrupt; who led him there is biggest shocker | BlueJackets Xtra (external - login to view)
Last edited by tay; Nov 20th, 2014 at 04:27 PM..
 
captain morgan
#2
Is this the same bastard Jack Johnson that did this?

Jack Johnson - World Jrs. - ModSquadHockey (external - login to view)
 
EagleSmack
+1
#3  Top Rated Post
Man was he stupid as was his parents. The apple didn't fall far from the tree.
 

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