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Hockeytown0001

CBJ's Jack Johnson files for bankruptcy

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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, as Johnson put it, led him astray financially.
Quote:
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.
Quote:
“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.
Quote:
Johnson has cut off all contact with his family, a source said.

Johnson’s paychecks from the Blue Jackets have been garnisheed to the point where, at the end of last season, “His paychecks were gone before he even got them,” a source said.

http://bluejacketsxtra.dispatch.com/...ce=twitterfeed

If true, what a rotten thing for his own parents to do.

Edited by Hockeytown0001

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Yikes!

I realize that professional athletes are mostly dumb. And Jack Johnson has never seemed too awful bright, even by those standards. But surely, somewhere along the way, he must have though "I wonder if I should hire a reputable financial advisor?". If he didn't, then he probably doesn't deserve the money anyway.

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Guest DeGraa55

It's actually quite common I believe for athletes to become broke. Except I thought it was AFTER they're done playing no while....

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Guest DeGraa55

The one good thing for Johnson here is that he still has 7-8 good years left of earning potential.

Exactly but for some people 2.5m still isn't enough to live of of which blows my mind.

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He's an idiot? Really?

I can't speak for anyone else, but the last person in this world I'd expect to screw me over financially is my mother. It's one thing to be awful with money, but what they did with his money goes beyond being financially irresponsible - they milked the **** out of him. They treated him like a cash cow and ran his debt into the ground. The amount they spent/lost has more to do with their greed and taking advantage of a situation than it does with making smart decisions. Disgusting on their part.

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He's an idiot? Really?

I can't speak for anyone else, but the last person in this world I'd expect to screw me over financially is my mother. It's one thing to be awful with money, but what they did with his money goes beyond being financially irresponsible - they milked the **** out of him. They treated him like a cash cow and ran his debt into the ground. The amount they spent/lost has more to do with their greed and taking advantage of a situation than it does with making smart decisions. Disgusting on their part.

The last person I'd trust to handle my multi-million dollar estate is my mother too. She's a secretary. No matter how much I love her that doesn't make her capable of handling millions of dollars in assets intelligently or responsibly. I know this. Jack Johnson, however, doesn't. That's why he's an idiot.

NOTE TO ALL PROFESSIONAL ATHLETES:

Hire professionals to take care of your money. You wouldn't let your parents repair your car, fill your cavities, or install your water heater. Why would you let them handle your millions of dollars in wealth?

Edited by kipwinger

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The last person I'd trust to handle my multi-million dollar estate is my mother too. She's a secretary. No matter how much I love her that doesn't make her capable of handling millions of dollars in assets intelligently or responsibly. I know this. Jack Johnson, however, doesn't. That's why he's an idiot.

NOTE TO ALL PROFESSIONAL ATHLETES:

Hire professionals to take care of your money. You wouldn't let your parents repair your car, fill your cavities, or install your water heater. Why would you let them handle your millions of dollars in wealth?

my Dads really good with cars.

And he helped put in my water heater.

And he pulled a bunch of my baby teeth.

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my Dads really good with cars.

And he helped put in my water heater.

And he pulled a bunch of my baby teeth.

Well by all means, give him access to your bank account and be sure to seek his advice when investing.

Not saying I'd trust him with millions of dollars, but you can't call him stupid for thinking his parents would have his best interest at heart.

He made a mistake.

He's stupid for thinking that his parents could reasonably pursue his best interest financially, even if they did have his best interest at heart. I don't know 10 people who can even balance a checkbook properly, and now suddenly your parents are competent to handle millions of dollars simply because they're supposed to love you? It's idiotic. Again, if you're a millionaire and you don't hire reputable, professional, accountants to handle your money, you are stupid. Stupid, stupid, stupid.

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He's an idiot? Really?

I can't speak for anyone else, but the last person in this world I'd expect to screw me over financially is my mother. It's one thing to be awful with money, but what they did with his money goes beyond being financially irresponsible - they milked the **** out of him. They treated him like a cash cow and ran his debt into the ground. The amount they spent/lost has more to do with their greed and taking advantage of a situation than it does with making smart decisions. Disgusting on their part.

Agreed.

When I first saw the headline I thought "what a moron." But reading more about it and hearing what his parents did puts it in a whole different light for me.

I guess you can blame him for being naive and not picking up on the problem earlier, but it's his friggin parents. The guy is likely busy playing hockey and trusting that his mother will be handling things and looking out for his best interests.

Not having an agent didn't help. Agents are often evil, but a necessary one in the entertainment business.

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Well by all means, give him access to your bank account and be sure to seek his advice when investing.

He's stupid for thinking that his parents could reasonably pursue his best interest financially, even if they did have his best interest at heart. I don't know 10 people who can even balance a checkbook properly, and now suddenly your parents are competent to handle millions of dollars simply because they're supposed to love you? It's idiotic. Again, if you're a millionaire and you don't hire reputable, professional, accountants to handle your money, you are stupid. Stupid, stupid, stupid.

That's not even the point, but go ahead with that. There's a difference between smart financial planning and people blowing all of your money without telling you.

Agreed.

When I first saw the headline I thought "what a moron." But reading more about it and hearing what his parents did puts it in a whole different light for me.

I had the same reaction.

Edited by Jesusberg

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Sometimes you make mistakes....JJ trusted his parents, Fedorov trusted a financial advisor and gave him millions and millions to invest...that didn't work out too good for Sergei. He thought he was hiring a professional and JJ thought he was in good hands with his parents. Greed kills and nobody is immune to now and again.

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The one good thing for Johnson here is that he still has 7-8 good years left of earning potential.

Yup that's what I thought , he's still 27 and I'm sure he can earn around 4 mill for another 8-10 yrs so at least if he's smart which I'm sure he will be after this he will be ok

And at least he knows to never give f all to his parents and cut them out of his life ... Pathetic what they did to him

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Most hockey athletes aren't dumb they attend colleges, went to good private schools and it always amazes me how people can go broke making so much money. The best financial advice is always to play it safe there is a reason why some loans with high interest rates are risky.

Also the so called financial professionals aren't always the smart choice either, I've worked in that business before and trust me it is unbelievable how unprepared some of them are (it's not even their fault because they companies - like in hockey terms are rushing them)...personally if I'm going to trust my money to someone it's always banks at first and a small amount of that will be used for average risk - average reward investments.

Hopefully he gets his situation fixed soon.

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That's not even the point, but go ahead with that. There's a difference between smart financial planning and people blowing all of your money without telling you.

They shouldn't have been handling his money in the first place. I'm not sure why that's so hard for people to pick up on. Do any of you have a joint bank account with your parents? Do any of you let your parents buy things in your name, or with your money? When was the last time you looked at your bank account and thought "hmmm, mom didn't spend as much as I thought she would?". Never? That's because only stupid people let others (including their parents) spend their money.

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The last person I'd trust to handle my multi-million dollar estate is my mother too. She's a secretary. No matter how much I love her that doesn't make her capable of handling millions of dollars in assets intelligently or responsibly. I know this. Jack Johnson, however, doesn't. That's why he's an idiot.

NOTE TO ALL PROFESSIONAL ATHLETES:

Hire professionals to take care of your money. You wouldn't let your parents repair your car, fill your cavities, or install your water heater. Why would you let them handle your millions of dollars in wealth?

It's not like he gave the money to his mom and said "go play the stock market." According to one source she did things like bought a house in Manhattan beach with his money, then lied to him saying they paid for it with a relative's inheritance.

So it's not just about ignorance of handling money and more about his parents completely taking advantage of him and not looking out for his best interests.

Obviously in hindsight he should've found a financial adviser, but I can imagine being 25 years old, who just signed this giant contract. There's people all around you licking their chops to get at that money and take advantage of you, so who do you trust? You just don't expect it to be your parents.

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They shouldn't have been handling his money in the first place. I'm not sure why that's so hard for people to pick up on. Do any of you have a joint bank account with your parents? Do any of you let your parents buy things in your name, or with your money? When was the last time you looked at your bank account and thought "hmmm, mom didn't spend as much as I thought she would?". Never? That's because only stupid people let others (including their parents) spend their money.

You've never been married have you?

Haha

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Most hockey athletes aren't dumb they attend colleges, went to good private schools and it always amazes me how people can go broke making so much money. The best financial advice is always to play it safe there is a reason why some loans with high interest rates are risky.

Also the so called financial professionals aren't always the smart choice either, I've worked in that business before and trust me it is unbelievable how unprepared some of them are (it's not even their fault because they companies - like in hockey terms are rushing them)...personally if I'm going to trust my money to someone it's always banks at first and a small amount of that will be used for average risk - average reward investments.

Hopefully he gets his situation fixed soon.

For some reason I assumed that all your investments were in the form of gold doubloons and were buried intermittently around your densely covered acreage. I'm wowed.

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They shouldn't have been handling his money in the first place. I'm not sure why that's so hard for people to pick up on. Do any of you have a joint bank account with your parents? Do any of you let your parents buy things in your name, or with your money? When was the last time you looked at your bank account and thought "hmmm, mom didn't spend as much as I thought she would?". Never? That's because only stupid people let others (including their parents) spend their money.

You are assuming he expected them to make the financial transactions themselves, versus them being the ones to go out and find financial advisors to handle his money.

He was a 25 year old who just signed a contract for 30 million dollars, which isn't quite the same situation as having your parents on your checking account. It's a tremendous amount of money and people start coming out of the woodwork to get a piece of it. So he put it in the hands of people he trusted while he went out and earned it. I'd venture to guess he's not the only pro athlete who's done this and most of the time it works out.

I'm not sure why that's so hard for you to pick up on.

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For some reason I assumed that all your investments were in the form of gold doubloons and were buried intermittently around your densely covered acreage. I'm wowed.

What's Jack Johnson doing now, is his mother coming for tee time...already booked a flight to play golf with his dad ? I mean according to someone here... he must be stupid, stupid, dur dur (9 old language?) because JJ trusted unqualified people with his money *lol*

I'd venture to guess he's not the only pro athlete who's done this and most of the time it works out.

I'm not sure why that's so hard for you to pick up on.

JJ also didn't have an agent when he signed that contract extension with the Kings. The good thing for him is, more money will come and with the right people in place he will be back to be a millionaire soon.

Edited by frankgrimes

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It's not like he gave the money to his mom and said "go play the stock market." According to one source she did things like bought a house in Manhattan beach with his money, then lied to him saying they paid for it with a relative's inheritance.

So it's not just about ignorance of handling money and more about his parents completely taking advantage of him and not looking out for his best interests.

Obviously in hindsight he should've found a financial adviser, but I can imagine being 25 years old, who just signed this giant contract. There's people all around you licking their chops to get at that money and take advantage of you, so who do you trust? You just don't expect it to be your parents.

Why does she even have that kind of access to his money? I'm not saying he wasn't taken advantage of. I'm saying dumb people are the easiest to take advantage of. You can be stupid, and a victim at the same time.

Also, not a week goes by that you don't hear about some parent taking out credit cards in their kids' names, mishandling their money, etc. etc. etc. It's not uncommon. And while I'm sure that it has happend, I doubt seriously that some joker at a reputable accounting firm, heavily regulated by the SEC and internally regulated by their desire to not lose million dollar accounts, is using his clients' money to buy houses and then claiming it was inheritance.

To answer your question, I guess I'd trust...Pat Brisson. The agent he stupidly fired, but who nevertheless seems to managing Crosby, Kane, and Toews just fine. Johnson was duped, in large part because he's dumb, and easily duped it seems.

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