- 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
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. 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.
According to The Columbus Dispatch, 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. Read the rest of the story.