Jack Johnson, a defenseman for the NHL has earned millions over his career. So then why did he file for bankruptcy on October 7?
Mother Takes Reins
Johnson signed a seven-year, $30.5 million contract with the Blue Jackets in 2011. What’s the reason behind him filing for bankruptcy just three years later? According to the Columbus Dispatch’s Aaron Portzline, Johnson’s troubles began when he signed over his power of attorney to his mother, Tina Johnson. Shortly after doing so, Tina and Johnson’s father, Jack Sr., tried to monetize the $30.5 million through borrowing money that had been secured for their son.
Sadly, it seems Johnson was unaware of his parents’ spending habits. As a result, he has been sued multiple times for defaulting on loans he didn’t know had been taken out under his name, including $15 million taken out across 18 high-interest loans. His parents also bought a California beach house and spent $800,000 to upgrade it.
Common in Sports
While this is hard it believe, it’s a tune often heard, especially in professional sports. After attending numerous practices, shuttling kids to and from games and specialist coaches, parents feel entitled to their child’s earnings.
A good recruiting agent will not only meet with the player, but also with the player’s family to ensure everyone knows where the earnings are meant to go – to the player. A good agent will also encourage players to surround themselves with financial advisors that can steer them clear of any route that ends in bankruptcy.