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OT: Jack Johnson is Broke / Bankruptcy Filed

Didn't JJ finally end up negotiating and signing his contract directly with Lombardi without an agent because his dad was screwing up the process? I seem to remember something along those lines.
 
SLang said:
Didn't JJ finally end up negotiating and signing his contract directly with Lombardi without an agent because his dad was screwing up the process? I seem to remember something along those lines.
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No, his Dad acted as his agent
 
Wow, that is just a terrible situation. I feel awful for Jack. He was a favorite of mine when he was with the Kings and he always seemed like a good guy. Hope he stays healthy and can turn all this around.
 
Muzzinga said:
Just awful. Losing that much money ****ing sucks, but at least he will be able to make like 20 mill in the rest of his playing time. Its much worse finding out your parents are selfish ********
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Actually more. Counting this season, he's owed $20 million on the contract he signed with the Kings still. Assuming he plays beyond the term of that deal, which he should since he'll only be 31 then, he still should be able to recover and live a very comfortable existence, assuming of course he doesn't suffer an injury.
 
Jack always seemed like the more humble, financially conservative type.

Reading about his parent's profligacy, it reeks more of greed and financial illiteracy than malice.

These guys Simon Vo and Steve Miller sound like the real dirtbags to me. No legitimate financial adviser is going to tell their client to take out high interest rate loans against their future earnings.
 
Buddy The Elf said:
I can't think of a reason why you would ever take a loan against your future earnings. If you can't afford whatever it is you need that money for, you can't afford it.
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His parents did that, not him. It is a horribly dumb move, especially with those interest rates. Those are usury level interest rates (loan shark)
 
What a sorry state of affairs when your own parents mess with your life like that.
Feel so bad for JJ. I imagine he'll find it extremely hard to ever trust anyone again.
 
SLang said:
Didn't JJ finally end up negotiating and signing his contract directly with Lombardi without an agent because his dad was screwing up the process? I seem to remember something along those lines.
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And people acted like it was some kind of noble gesture on Jack's part when in reality he signed a 7 year contract for less than market value. And now on top of that the people who negotiated the awful contract have squandered the money he did get. Jack will be about 30 when his contract is up and he should still be able to cash in on a pretty significant deal, but the lesson to be learned in all of this is that agents and financial managers are there for a reason, guys don't give a financial cut to agents for the hell of it, they are an important part of a players career and especially post career.Still amazing to think that a defenseman coming off playing really well at the Olympics and entering his prime years was convinced to sign away the prime years of his career for barely over $4 million. It must make JJ sick seeing what guys like MacDonald got, what Martinez will get

Jack's father was always a nice person to everyone he met and he was a legend at Yost for his fun loving antics, but he kind of did always have that con man type vibe about him, so this isn't totally shocking.
 
Flour Child said:
His parents did that, not him. It is a horribly dumb move, especially with those interest rates. Those are usury level interest rates (loan shark)
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Yeah i realize it was the parents. I was just saying I can't imagine why anyone would see that as a good idea. Its pretty sad that his parents thought it was ok to be spending his money.

What is really scary is if Jack has a serious injury or his play really declines, he could be in a world of hurt if he can't get another contract.
 
tony_soprano_2463138b.jpg


You'd get better interest rates from this guy!!
 
Ziggy Stardust said:
He should have never let go of Pat Brisson as his agent.
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Just goes to show how much off ice crapola agents have to deal with when representing players. They earn their money.

Why the NHLPA certifies agents and not financial advisors though is a mystery. Most people have no clue who to turn to when they come in to a lot of money at once. Financial advisors are there to basically not let you do anything stupid with the money you have (such as borrowing against guaranteed contracts, which any advisor worth their salt would say is a no-no). What's why the NHLPA needs to provide a list of certified advisors - they get commitments from the advisors on that list to do or not do certain things (such as never allowing players to borrow against their contracts, agreeing never to recommend high interest or risky loan products, etc.).

Just sad. Jack Jr. was a top notch kid. Shame what money does to families sometimes.
 
TonySCV said:
Just goes to show how much off ice crapola agents have to deal with when representing players. They earn their money.

Why the NHLPA certifies agents and not financial advisors though is a mystery. Most people have no clue who to turn to when they come in to a lot of money at once. Financial advisors are there to basically not let you do anything stupid with the money you have (such as borrowing against guaranteed contracts, which any advisor worth their salt would say is a no-no). What's why the NHLPA needs to provide a list of certified advisors - they get commitments from the advisors on that list to do or not do certain things (such as never allowing players to borrow against their contracts, agreeing never to recommend high interest or risky loan products, etc.).

Just sad. Jack Jr. was a top notch kid. Shame what money does to families sometimes.
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There's thousands upon thousands of financial advisers out there. Certification of them is probably beyond the scope of the league or the union. Unlike agents, advisers and planners don't deal with the league or PA, so it would seem out of place for the league/union to go into that area.

The government already has certification programs in place for financial planners.
 
Love Jack. Sucks very much this happened to him. At least he learned an expensive lesson early in his career and can rebound from this. Much luck to him.

Sad how family/friends and business just doesn't mix well. I learned this lesson a while ago.
 
He's got time left to right the ship. Glad he got a hold of some real advisors and went forward with the bankruptcy. Yeah, it's embarrassing, but you get it over with so you can actually get everything straightened out.

The real tragedy is that he may never be able to trust his own parents again, which is a hell of a blow to the psyche. He is apparently worried about his brother now too, which makes me wonder what kind of household it was.
 
Just insane. How much is it that he lost? All of his new contact? All 30M?

Just insane. What's worse as it's not even close to even a crappy investment. How could these two spend millions of dollars and at the end have nothing but a single house and some minor stuff. Where is the crazy gold plated coach or private jet?

... Makes me think that was the plan. Take tens of millions of dollars, hide it in crazy insane loans, and then move it to some hidden off-shore bank accounts. If they're smart that's where the money is. I'd have trouble thinking that someone is incompetent enough to spend 20m+ dollars and en up with nearly nothing to sell at the end of it.

Just... terrible.
 
Tadite said:
Just insane. How much is it that he lost? All of his new contact? All 30M?

Just insane. What's worse as it's not even close to even a crappy investment. How could these two spend millions of dollars and at the end have nothing but a single house and some minor stuff. Where is the crazy gold plated coach or private jet?

... Makes me think that was the plan. Take tens of millions of dollars, hide it in crazy insane loans, and then move it to some hidden off-shore bank accounts. If they're smart that's where the money is. I'd have trouble thinking that someone is incompetent enough to spend 20m+ dollars and en up with nearly nothing to sell at the end of it.

Just... terrible.
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I might be interpreting it wrong but I don't think they spent all $30M. I think they took loans with such bad terms that he doesn't have the liquid assets available to cover the debt that has defaulted. In the article they mention that he owes $1.5M on the house in Manhattan Beach and had an offer for $1.8M where he could pay off that debt and have left over to cover some of the other debt. But that house is in foreclosure so he has a law suit with the mortgage company to stop the foreclosure.
 
Tadite said:
Just insane. How much is it that he lost? All of his new contact? All 30M?

Just insane. What's worse as it's not even close to even a crappy investment. How could these two spend millions of dollars and at the end have nothing but a single house and some minor stuff. Where is the crazy gold plated coach or private jet?

... Makes me think that was the plan. Take tens of millions of dollars, hide it in crazy insane loans, and then move it to some hidden off-shore bank accounts. If they're smart that's where the money is. I'd have trouble thinking that someone is incompetent enough to spend 20m+ dollars and en up with nearly nothing to sell at the end of it.

Just... terrible.
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Ever hear of Mike Tyson?

Somehow, that guy managed to piss $100 million away.
 
Pac man Jones spent 1 million in a weekend, on absolutely nothing worth while.

60 percent of lottery winners are broke within five years. financial recovery, and planing(future earnings) is my area of work.

People/businesses even, are really stupid with money, it's why I have a job.

What Jack's parents did, is common when you have no idea how interest rates work. Sad for Jack, I hope he has surrounded himself with smarter people. It's staggering the amount of people I get in the office who bring a loan wanting advice on it "Jake 10% is good right" ?...Words can not describe how many face palms I do daily.

If Not, I am always taking on new clients Jack :)
 
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