How Much Did Johnny Damon Have Invested In Stanford?
CNBC Sports Business Reporter
A little more than an hour ago, FoxSports.com's Ken Rosenthal broke the story that New York Yankees outfielder Johnny Damon said he couldn't pay his bills because he had money invested with Stanford Financial.
Damon is the first big name to emerge among the athletes that invested with Stanford, which has been charged with an $8 billion investment fraud and whose assets have been frozen.
Damon tells Rosenthal he's not sure that he can pay his mortgage this month and he can't even pay a trainer who worked with him this offseason.
I know nothing of Damon's situation and to give him the benefit of the doubt, he might be exaggerating here, but based on what he's saying it appears like he's got more money then he should in his investment portfolio. Damon has made $84.1 million through his 14-year Major League Baseball career, according Baseball Reference.
How does he not have the cash to make simple payments?
Damon told Rosenthal that he hopes that things can work on a case-by-case basis so that his money could be used at some point. Well, even if he had most of his career earnings in there, if this turns out to be as big of a fraud as has been alleged, something tells me he wouldn't even be the first in line.
Update: The way Johnny Damon's agent Scott Boras seems to be explaining things is that Damon's assets are locked up in one of the Stanford accounts that were frozen by the government, but not necessarily in the investment division. It therefore is possible that the government took the precaution of freezing that particular Stanford group of funds and that the money could eventually, at some point, be safe.
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