Columbus Blue Jackets defenseman Jack Johnson is in the midst of a contract that will make him a total of $30.5 million. However, Johnson won’t see much of the remainder of that contract as he attempts to get himself out of bankruptcy.
More than two years ago, Johnson applied for bankruptcy protection. Based on what he is making during the next five years, Johnson will be able to get him out of the bankruptcy situation he is currently in.
The Michigan native finds himself in this situation thanks to the fact he let his parents control his financial situation. As a result of that decision, Johnson’s parents took out loans in his name that put him in a massive amount of debt and nearly caused the Columbus blue-liner to sue his own parents.
This situation ultimately led to Johnson agreeing to a deal that would get him out of this grim situation. Here are the details.
The bankruptcy deal approved last week pledges money from Mr. Johnson’s current NHL contract to creditors as well as future income he could potentially earn under any new deal running through the end of the 2020-2021 NHL season. Mr. Johnson, 29 years old, is scheduled to receive $5 million this year and another $5 million next season. His current deal is set to end in 2018.
Assets included in Mr. Johnson’s bankruptcy estate that will also be used to pay off his debts include proceeds from the sale of a 2011 Ferrari California valued at $125,000 and residences in Ann Arbor, Mich., and Manhattan Beach, Calif. Mr. Johnson played two seasons of college hockey at the University of Michigan and spent parts of six seasons with the Los Angeles Kings before being traded to Columbus.
We’ve known about Johnson’s situation for a decent amount of time. However, every time it’s brought up, it seems a little more depressing. Many athletes have talked about the perils of getting those close to you involved in financial situations. It’s just hard to imagine your own parents putting you into a bankruptcy hole like this one.
