Jack Johnson Bankrupt

[Derek Sutton]

Originally Posted by sureLoss

I can see how its pretty easy to convince someone not to have an agent or business manager. A lot of people don't think there is a lot of value in having them.

Why pay an agent a percentage of your million dollar contract when you can have a family member you trust do it for free or less than what the agent is charging? Until a person gets burned and sees the value of having a professional, a lot of people may see an agent/business manager as an unnecessary expense.

I know Ovechkin's mom is his agent. Brodeur didn't have an agent for most of his time with New Jersey.

I can see how Johnson fell into this predicament. He probably saw a lot of the sacrifices his parents made for him to play hockey and assumed they would always have his best interests at heart. The parents got greedy and probably felt entitled to his money.


As an aside in 2009, his father was reported as going behind Johnson's back while he was in negotiations with the Kings and contacted KHL teams to get offers to help drive up the $ figure.

A $3,000,000 loan at 24% interest, I just can't figure that out. Way beyond greed, more like desperation; survival. I believe there more to this then a couple of greedy parents.

[Dion]

I'm surprised he isn't persuing criminal charges against his parents. They should be held accountable for thier actions.

[RougeUnderoos]

Similar sounding story in baseball... when this guy took over his own finances from his family, his dad told him he owed him and his mom 5 million bucks each. Nice guy!

http://www.philly.com/philly/sports/..._finances.html

“By late 2011,” according to Ryan’s countersuit, “Ryan had become concerned with whether Corey and his other family members were really working to protect his financial interests or were attempting to enrich themselves at his expense.”

Howard claimed that he had paid his family at least $2,795,337.38, all based on his mother’s authorization. Howard claimed that he did not know of these payments until he took over financial control of RJH Enterprises in July 2012.

A few months later, according to court documents, Howard watched a TV show titled “Broke” about “the financial plight of certain star athletes who had entrusted their business affairs to the family.”

With Howard in the first year of a 5-year, $125 million contract extension he signed in the spring of 2010, he decided to turn all of his marketing and promotional efforts over to agent Casey Close, whose Creative Artists Agency was a major player in the entertainment world (Close has since left CAA)."

[Locke]

Originally Posted by Dion

I'm surprised he isn't persuing criminal charges against his parents. They should be held accountable for thier actions.

To what end? He likely cant get any of his money back and they would never spend a day in jail.

White Collar crime does pay.

[heep223]

Originally Posted by Locke

To what end? He likely cant get any of his money back and they would never spend a day in jail.

White Collar crime does pay.

There is no need to make such a broad generalizing comment like this. He signed power of attorney to give his parents complete control. They totally screwed him over but it doesn't appear they did anything illegal. What does this have to do with white collar crime? In particular, the US takes fraud, insider trading, ponzi schemes very very very seriously and have some of the most punitive laws (if not the most) on these crimes in the world. They are repeatedly throwing white collar people into jail for 30 years for these types of crimes.

I wish ALL kids were forced to learn about financial and investment management in high school....this story makes me really sad.

[Locke]

Originally Posted by heep223

There is no need to make such a broad generalizing comment like this. He signed power of attorney to give his parents complete control. They totally screwed him over but it doesn't appear they did anything illegal. What does this have to do with white collar crime? In particular, the US takes fraud, insider trading, ponzi schemes very very very seriously and have some of the most punitive laws (if not the most) on these crimes in the world. They are repeatedly throwing white collar people into jail for 30 years for these types of crimes.

I wish ALL kids were forced to learn about financial and investment management in high school....this story makes me really sad.

They used a position of power and trust to their ultimate advantage and his ultimate detriment.

And the US' stance on white collar crime is a complete joke.

[heep223]

Originally Posted by Locke

They used a position of power and trust to their ultimate advantage and his ultimate detriment.

Clearly. Nothing to do with white collar crime though, there's no need to make this about how it's the government's fault or something. Just rotten people it appears.

Originally Posted by Locke

And the US' stance on white collar crime is a complete joke.

Wow I don't agree with this at all, but let's not bore everyone with an argument about it.

[Dion]

Originally Posted by Locke

To what end? He likely cant get any of his money back and they would never spend a day in jail.

White Collar crime does pay.

I guess not being able to see thier son again would be punishment in itsef. Still it angers me what they got away with.

[Dion]

Originally Posted by Locke

They used a position of power and trust to their ultimate advantage and his ultimate detriment.

And the US' stance on white collar crime is a complete joke.

The mother was the weakest link and I believe the bond a mother and son have was the way they were able to get him to give her power of attorney over his money.

[Mean Mr. Mustard]

Originally Posted by Dion

I'm surprised he isn't persuing criminal charges against his parents. They should be held accountable for thier actions.

That is easier said when it isn't your parents though.

[Dion]

Originally Posted by Mean Mr. Mustard

That is easier said when it isn't your parents though.

If they are not going to be a part of your life anymore, why would it be so hard?

[Arya Stark]

Originally Posted by Dion

I'm surprised he isn't persuing criminal charges against his parents. They should be held accountable for thier actions.

Under what law?

[Dion]

Originally Posted by Arya Stark

Under what law?

Locke already explained that would not be possible.

[firecenter]

Call me dumb when it comes to bankruptcy and how it works. So going forward, he has debts of $15M, how much of that remains after filing? Given they are likely all unsecured creditors, does he just settle any outstanding lawsuits, and then starts fresh with 0?

[Flames Fan, Ph.D.]

Originally Posted by heep223

There is no need to make such a broad generalizing comment like this. He signed power of attorney to give his parents complete control. They totally screwed him over but it doesn't appear they did anything illegal. What does this have to do with white collar crime? In particular, the US takes fraud, insider trading, ponzi schemes very very very seriously and have some of the most punitive laws (if not the most) on these crimes in the world. They are repeatedly throwing white collar people into jail for 30 years for these types of crimes.

I wish ALL kids were forced to learn about financial and investment management in high school....this story makes me really sad.

If by white collar people you mean young african american males that smoke marijuana, then yes.

[GioforPM]

Originally Posted by firecenter

Call me dumb when it comes to bankruptcy and how it works. So going forward, he has debts of $15M, how much of that remains after filing? Given they are likely all unsecured creditors, does he just settle any outstanding lawsuits, and then starts fresh with 0?

US bankruptcy law has more exceptions of what debts survive a bankruptcy, but generally, yes, it's a fresh start, free and clear of old debts. His present assets (like the car) are liquidated, the creditors get their pro rata share, in order of legal priority.

There are nuances, like conditional discharges from bankruptcy, wherein a percentage of income may be directed to the bankruptcy estate, which I know about in Canadian law. I'm not versant in the US ones.

He's luckier than a lot of bankrupts in that he has the wherewithal to get back on his feet very quickly. This action may in fact, be mentally healthy for him in that the ongoing worry of the debt has been dealt with in more or less a single stroke.

[Ice]

Chapter 11 is a reorganization of debt. This is mostly used by businesses but the amount of debt and type of debt in this case prevents a Chapter 13 reorganization that is typically used by individuals. Some debts may be reduced or forgiven but it's not a clean slate like Chapter 7 bankruptcy is. Recent laws have made it more difficult to file chapter 7 and start fresh.

[GioforPM]

Chapter 11 is a voted process, whereby the creditors vote on a plan of reorganization. It is still a clean slate with respect to all affected creditors, whether they vote for the reorganization or not, so long as the double majority vote in each class passes. For companies its akin to the CCAA proceedings of Air Canada, Stelco, etc. or a corporate proposal under the Bankruptcy and Insolvency Act.

In Canada the equivalent for an individual is a consumer proposal under the BIA. To the affected creditors, it's just as much a clean slate as a regular bankruptcy.

[sureLoss]

deadspin exposes how deplorable his parents really were:

http://deadspin.com/how-jack-johnson...ill-1663583325

That person, who requested anonymity citing ongoing legal actions, claims that as early as Johnson's first full season in the NHL, his parents, Jack Sr. and Tina Johnson, were already trying to pocket as much of his rookie contract as possible. On Sept. 9, 2008, Johnson parted ways with veteran CAA agent Pat Brisson. Johnson's father had pushed him to fire Brisson, our source said, because he believed that the agent's fees were an unnecessary cost. "He deliberately wanted to eliminate any potential impediment to their bilking of his funds," the source told me.

According to the person close to Johnson, Jack was oblivious all along to his disappearing money and mortgaged contract. His parents told him all their big purchases were bought with an inheritance from a recently deceased relative, and Johnson, the source says, had no reason to disbelieve them.

"There were a few people trying to track him down, he would confront his parents, and they would tell him to focus on hockey," the person said. "Typically, they dismissed the people as con artists who were just trying to shake him down. Some of those interactions were happening as long as a year ago. But he had no idea it was a real problem until the spring [of 2014]."

The cover stories started to fall apart when Johnson got engaged to Kelly Quinn, sister of NFL quarterback Brady Quinn. Johnson attempted to move toward being financially independent in anticipation of starting a family, according to our source, but his parents "tried to slow down the engagement, advising Jack not to act so soon."

The Dispatch reported that Johnson confronted his parents in May of last year. Soon after, he hired his own attorneys and financial advisers, who set into motion the painful and lengthy process of cleaning up the mess of debt he had accrued.

[foshizzle11]

wow, that is really tough. I am glad he has turned things around and is more aware of his personal finances. This is a good story for many young athletes to learn from.

I can't imagine that any NHL player wouldn't show their parents some sort of thanks financially once they have made it, no need to take advantage of their son. Crazy story.