NFT: Jack Johnson's parents bankrupted him

timing given Ryan Howard's lawsuit was settled yesterday. Very sad.

There were concerns about his parents when he was drafted, IIRC.

course an ex-Knick is involved.


Maurice Taylor, a star basketball player at Michigan from 1994 to ’97 who was later disassociated by the school after a string of NCAA violations, steered Johnson and his family toward Simon Vo, who was to serve as Johnson’s business manager after Johnson fired Brisson, the agent.

Johnson had been paid relatively modest salaries early in his career, earning a high of $1.6 million in his fourth season in the league.

In the months leading up to his $30.5 million deal with the Kings, however, Vo and Steve Miller, who owned a mortgage company in Los Angeles, began discussing with Johnson’s parents the idea of “monetizing” Johnson’s contract, sources said.

“Monetizing” — that is, borrowing against guaranteed future salaries — has led to the financial woes of many professional athletes.

One prominent NHL agent, asked whether he would ever advise his clients to monetize a contract, responded: “Never, never, never.”

What utter pieces of shit those two are

What a terrible thing to do to your son but the question is raised of why he let his parents control any of his money.

24 percent...seems about right....

a negative opinion of Jack Johnson before even getting into the article:

Quote:

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.

He thought he was doing the right thing by letting people who were supposed to have his best interests at heart, who he thought knew how to handle money better than he did, make sure his money was well taken care of. And his parents repaid his trust by stealing everything they could from him.

Crazy story. Thanks for posting.

In comment 11989814 Greg from LI said:

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He thought he was doing the right thing by letting people who were supposed to have his best interests at heart, who he thought knew how to handle money better than he did, make sure his money was well taken care of. And his parents repaid his trust by stealing everything they could from him.

The classic story of the military spouse who burns through her husband's deployment cash while he's downrange and then leaves him right before or right after he gets back has been told enough times, but there are plenty of instances where 18-19-20 year old kids gave their parents powers of attorney or access to bank accounts and got home to find out that they had been all but cleaned out.

In comment 11989809 Rob in NYC said:

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24 percent...seems about right....

I started sweating just reading that. 24%!!!!

In comment 11989830 Go Terps said:

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In comment 11989809 Rob in NYC said: Quote: 24 percent...seems about right.... I started sweating just reading that. 24%!!!!

Could have been worse

when you read the details of their so-called monetizing strategy. These are such common sense no no's that you have to wonder what in the hell was swirling around in the head's of his mother and father.

You can't pick your parents ...

the musician Jack Johnson

.

Holy fuck. That comes to $62,496 for a $10,000 loan.

This topic scares the shit out of me.

Aside from the risk of having your legs broken, you'd be better off going to an actual loanshark.

and to old to count when he became heavyweight champ and had a boat load of money.

In comment 11989851 Greg from LI said:

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Aside from the risk of having your legs broken, you'd be better off going to an actual loanshark.

But it's $10K in a day!

That's totes worth it. $0 + $10K = almost $10K. Don't you know maths?

You don't have to wait!

I'm applying now.

But I have heard several times that the western loan scheme actually has no legal standing in us. Meaning unless you step foot on their reservation they can't bring you to court to recover the money. That is how they are able to get around the usary guidelines that states apply.

In comment 11989813 figgy2989 said:

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a negative opinion of Jack Johnson before even getting into the article: Quote: 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.

That's what I saw too. The entire family apparently doesn't understand money or how it works.

In comment 11989875 bhill410 said:

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But I have heard several times that the western loan scheme actually has no legal standing in us. Meaning unless you step foot on their reservation they can't bring you to court to recover the money. That is how they are able to get around the usary guidelines that states apply.

See? Even better than reverse layaway! You don't have to pay at all!


As a side note:

A kid that works with me had a 5yr loan on a used car. 22%. I lol'd at him. He ended up paying it off with a 401K loan (which is yet another fucked up deal- pay interest to someone on your own money.) Either way, his 8 or 9% on the 401 was a smidge better than the predatory loan he had.

He actually asked me, "Is that a bad rate?"

not sure if that's more of a sad or insane story. Good Lord

With so many folks living paycheck to paycheck, any sort of financial knowledge outside of having enough to pay food , gas, lights, and rent is basically non-existent. It's not like we teach our children about finances at school- so if your parents don't know/don't teach you, you learn the hard way.

I'm not really one to talk about dumb financial choices as I made the mistake of letting my ex-wife handle our finances (and didn't pay attention to what the dumb drunk bitch was doing/not doing)...but that was more of a willful ignorance.

I've seen guys making over $100k lose their house because of credit cards/bad loans/buying well beyond their means. This is prior to '08. It definitely got worse once the bubble burst. People without money or that grew up without money can be amazingly stupid.

Whenever kicker talks about healthcare and not taking care of yourself now because you can treat diabetes in the future with a pill, I always think of the guys that bought a McMansion, furnished it with Visa, and then trade in their F350 every two years and wonder how they ended up on the verge of bankruptcy.

It's crazy that it happens so often. And these are folks in their 30's and 40's- who now have $0 of their own money saved for any sort of retirement. That's the scariest part , IMO.

1) Even before they got power of attorney, he had financial troubles, as it mentions he had almost nothing in the bank. Then again, that is very vague and could simply be relative to a 7 figure salary.

2) If just about his entire salary is being garnished, how is he living?

3) If I were him, I would most certainly pursue the criminal charges against the parents.

4) Was there ever even the intent on the parents behalf to repay these loans? Or are they just really stupid?

5) Why would his attempt to put off foreclosure be denied, especially with a buyer lined up?

on this thread.

I was convinced this was about Jack Johnson the musician too. How could anything on God's green earth regarding Jack Johnson top his number one album "Sing-A-Longs and Lullabies for the Film Curious George" in 2006? :)

No idea who he is, what kind of music he plays, or anything else.

All the good people go

That he has a Ferrari and BMW does not suggest he is somehow responsible for being taken advantage of. BMWs vary in price and on a lease are priced for people who make less than 10% of what Johnson makes. The Ferrari was probably a splurge, but again, is it really that crazy for someone with nearly $40 million in career earnings/guaranteed future wages? Tack on another potential $25-40 million for his next deal too (UFA at age 31).

If Johnson bought the Ferrari without knowing that he was getting ripped off, I have no problem with the purchase at all.

It says that people who know Johnson well say he's not a big spender, and that the Ferrari was his one big indulgence.

In comment 11990088 Deej said:

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That he has a Ferrari and BMW does not suggest he is somehow responsible for being taken advantage of. BMWs vary in price and on a lease are priced for people who make less than 10% of what Johnson makes. The Ferrari was probably a splurge, but again, is it really that crazy for someone with nearly $40 million in career earnings/guaranteed future wages? Tack on another potential $25-40 million for his next deal too (UFA at age 31). If Johnson bought the Ferrari without knowing that he was getting ripped off, I have no problem with the purchase at all.

Considering he's broke, buying the Ferarri & BMW indicate he invested in toys which didn't make him money. Sure, he should have enough disposable income for toys yet considering his cash position it's safe to say he accumulated a lot of liabilities and never had his money working for him.

You don't even know what model it was. For all you know it was a $35K 3 Series.

In comment 11990120 Greg from LI said:

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You don't even know what model it was. For all you know it was a $35K 3 Series.

Don't bother Giants2012 is an idiot

It's good to see I have a stalker like you and sry my post wasn't about video games or something near or around your level of the food chain.

and he doesn't have money in the bank after the first couple years of 'low' salary of 1.4 mil, any halfway intelligent person immediate figures something is up.

Finances aren't rocket science. it's not taking away from your ability to play hockey to look at your bank account, realize that you've been making risky investments, and then start stuffing it 'under the mattress'.

In comment 11990120 Greg from LI said:

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You don't even know what model it was. For all you know it was a $35K 3 Series.

A car is a depreciating asset incase you haven't left that chair this decade.

In comment 11990151 Giants2012 said:

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It's good to see I have a stalker like you and sry my post wasn't about video games or something near or around your level of the food chain.

Maybe you should make it about spelling.."sry"

In comment 11990163 montanagiant said:

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In comment 11990151 Giants2012 said: Quote: It's good to see I have a stalker like you and sry my post wasn't about video games or something near or around your level of the food chain. Maybe you should make it about spelling.."sry"

"sry" means sorry. Do you need a link of proof for that too or are you just hopelessly lost in translation?

In comment 11990169 Giants2012 said:

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In comment 11990163 montanagiant said: Quote: In comment 11990151 Giants2012 said: Quote: It's good to see I have a stalker like you and sry my post wasn't about video games or something near or around your level of the food chain. Maybe you should make it about spelling.."sry" "sry" means sorry. Do you need a link of proof for that too or are you just hopelessly lost in translation?

Well like most adults we choose to spell the word, not use cute teenage text vernacular. But you go ahead twitter boy!

should be an easily affordable automobile for someone in that salary range, but, yes, it is a toy. I wouldn't call it an example of outrageous spending for someone in his tax bracket, though

In comment 11990177 montanagiant said:

Quote:

In comment 11990169 Giants2012 said: Quote: In comment 11990163 montanagiant said: Quote: In comment 11990151 Giants2012 said: Quote: It's good to see I have a stalker like you and sry my post wasn't about video games or something near or around your level of the food chain. Maybe you should make it about spelling.."sry" "sry" means sorry. Do you need a link of proof for that too or are you just hopelessly lost in translation? Well like most adults we choose to spell the word, not use cute teenage text vernacular. But you go ahead twitter boy!

You're too stupid to insult.

In comment 11990180 fkap said:

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should be an easily affordable automobile for someone in that salary range, but, yes, it is a toy. I wouldn't call it an example of outrageous spending for someone in his tax bracket, though

+1

Like I said, "Considering he's broke, buying the Ferarri & BMW indicate he invested in toys which didn't make him money"

Toys being plural for poor investments (not that some can comprehend).

Is it really that hard to read the whole article. I mean i know you are into shortcuts while typing, but holy shit man why would make a comment on something you don't even know the facts to?

Johnson bought himself one luxury item when he signed the big contract (the Ferrari). It obviously is not a daily driver so he purchased a BMW that is very reasonable for a man who just got 30M. It was AFTER these purchases that he found out he was dead broke.

I know you're not very intelligent and comically hypocritical in protecting your anal perception of reality but this is yet another worthless debate I'm not going to have with you. Go stalk somebody else during your free time to fill up that empty schedule.

In comment 11990228 Giants2012 said:

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I know you're not very intelligent and comically hypocritical in protecting your anal perception of reality but this is yet another worthless debate I'm not going to have with you. Go stalk somebody else during your free time to fill up that empty schedule.

Well if you were going to debate it, you might want to actually read the article, take a few minutes to understand it and allow some comprehension to take hold, then you can possibly come back and make an intelligent, well thought out post that deals with the realities of what is being discussed.

Or you can learn some more HS school twitter shortcuts

Best thread of the day.

In comment 11989906 Cam in MO said:

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In comment 11989875 bhill410 said: Quote: But I have heard several times that the western loan scheme actually has no legal standing in us. Meaning unless you step foot on their reservation they can't bring you to court to recover the money. That is how they are able to get around the usary guidelines that states apply. See? Even better than reverse layaway! You don't have to pay at all! As a side note: A kid that works with me had a 5yr loan on a used car. 22%. I lol'd at him. He ended up paying it off with a 401K loan (which is yet another fucked up deal- pay interest to someone on your own money.) Either way, his 8 or 9% on the 401 was a smidge better than the predatory loan he had. He actually asked me, "Is that a bad rate?"

When you take out a 401K loan you are paying the interest back to yourself because you are borrowing your own money.

This thread took a turn since I last checked in.

The cynic in me thinks that just maybe he along with his parents believed that the agents weren't investing his money aggressively enough and that is the reason why he fired his agent and let his parents manage his money.

I am not saying they didn't bankrupt him and I am also not saying he had much idea of what all they might have been doing with his money that resulted in bankruptcy, but I wouldn't be at all surprised if it was greed on his part as well as theirs that put him in that situation.

Agents are not generally investing anything. They don't manage money. They negotiate the contracts and get them other deals.

I could be wrong but with a young player I think it isn't uncommon for them to assist in putting the player in touch with a team of people for a variety of things to aid him including financial advisors. With a newly drafted player an agent in addition to negotiated the contract may easily also just overall look out in general for a young player. At least a good agent. I don't see them disassociating themselves from the entire process completely with no knowledge of what is going on financially with the player.

.

the real crime is owning a Ferrari and a BMW while declaring bankruptcy.

God bless America!

Fucking stupid post....

if you don't have anything nice.


Didn't you know that?