NHL star forced to declare bankruptcy after 'his PARENTS secretly squandered his $30million fortune
Jack Johnson signed a seven-year, US$30.5-million contract with the Los Angeles Kings in 2011. Now with the Columbus Blue Jackets, he is set to add this year’s $5 million salary to the more than $18 million he has earned in his NHL career.
Now he’s filed for bankruptcy.
Reports say he now claims less than $50,000 in assets and debts more than $10 million.
He gave control of his finances to his parents who, over the last few years, borrowed at least $15 million against Johnson’s future earnings.
Johnson made his parents his financial advisers in 2008, and signed over control of his money to his mother in 2011. The parents then spent his money on cars, travel and a new loan.
Johnson’s parents also took out non-conventional loans, and defaulted on them. The loans included one for $2million, with an interest rate of 12 percent, and one for $3 million, with an interest rate of 24 percent.
Johnson is now bankrupt and still owes $10million or more to debtors
Derringer talks about sports, family, fame and money:
Was he wise to give over control of his own earnings to family? Can you trust family with YOUR money?