NHL Star Forced to Declare Bankruptcy after 'his PARENTS Secretly Squandered his $30million Fortune on Homes, Vacations and Cars'
- NHL star Jack Johnson made his parents his financial advisers in 2008, and signed over control of his money to his mother in 2011
- The parents of the Columbus Blue Jackets defenseman 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
- Now, Johnson is bankrupt and still owes $10million or more to debtors
By Daily Mail UK, 21 November 2014
At just 27-years-old, Jack Johnson has had a remarkable hockey career.
The Coulmbus Blue Jackets defenseman, who previously played for the Los Angeles Kings, was selected third in the 2005 NHL Entry Draft, played for Team USA in the 2010 Olympics, and has earned a staggering $23million during his career.
And now all that money, and some more, is gone - because of his parents.
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Down and out: NHL star Jack Johnson has had his $30million fortune squandered by his parents, who he trusted with his money
Lush life: Johnson's parents spent money on cars, travel and a new home
Family: Johnson with his parents, Tina and Jack Sr.
After parting with his agent in 2008, Johnson, who attended University of Michigan but has little financial knowledge, turned control of his money over to his parents.
Then, in 2011,Johnson signed a power of attorney that granted his mother full control of his finances shortly before signing a $30.5million contract with the Kings.
That is when things started to go horribly wrong.
Tina Johnson, Jack's mother, borrowed at least $15 million in her son’s name against his future earnings.
What's more, she borrowed from nonconventional lenders and defaulted on the loans.
The loans included one from Iowa Congressman Rodney L. Blum for $2million, with an interest rate of 12 percent, and one from Pro Player Funding for $3 million, with an interest rate of 24 percent.
Now, Jack has been sued repeatedly for $6million in loan repayments after his parents splurged on cars, a home in Manhattan Beach, California, along with $800,00 in upgrades, and travel.
He has also been forced to declare bankruptcy.
'Jack would ask [his parents] questions: "What’s this? What are these guys calling about?",' a source told the paper.
'And they would tell him not to worry about it, just worry about playing hockey.'
Now all Jack can claim is assets 'less then $50,000' and 'debts greater than $10million.'
Illustrious career: Johnson has had an amazing career, playing for the 2010 Olympic team (left) as well as the Columbus Blue Jackets (left) and the Los Angeles Kings
Rough life: Now Johnson owes more than $10million and is having all his checks garnished
His paychecks from the Blue Jackets meanwhile, who are paying him $5million this season, are garnished as soon as he receives them.
The source said he is no longer speaking to his parents.
'I’ve seen lots of instances of parents riding their kid’s coattails around,' said one NHL executive.
'I’ve never seen a case as ugly as this one, where the parents took such advantage of their kid.'
Jack, who has hired a new team of financial advisers, is taking the high road still somehow, despite this awful setback.
'I’d say I picked the wrong people who led me down the wrong path,' he said.
'I’ve got people in place who are going to fix everything now. It’s something I should have done a long time ago.'