Age-based Investing

Hockey player's parents lead him into bankruptcy

Jack Johnson of the Columbus Blue Jackets skates against the Detroit Red Wings on November 18, 2014 at Nationwide Arena in Columbus, Ohio.
Jamie Sabau | NHLI | Getty Images

As professional hockey player Jack Johnson has discovered, father (and mother) don't always know best.

The Columbus Blue Jackets player filed for bankruptcy in October, despite having earned more than $18 million prior to this season as an athlete with the National Hockey League, The Columbus Dispatch wrote. Nearly all of that money is gone, and some of $5 million he will make this season is already promised to lenders.

After splitting from his agent Pat Brisson in 2008, Johnson turned to his parents, Jack Sr. and Tina, for help managing money. In a story that is all too familiar since the 2008 financial crisis, Johnson's mother took out $15 million in risky high interest rate loans in her son's name that he later defaulted on, leaving him high fees and mounting interest, according to the publication. The NHL player also faced three lawsuits because of the defaults, one of which is still pending.

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Johnson claims much of his parents' spending, including the purchase of a house in Manhattan Beach, Calif. and two cars, was made without his knowledge. In his bankruptcy filings, Johnson said he had assets of "less than $50,000" but "more than $10 million" in debts, according to The Columbus Dispatch.

For more on this story, check out The Columbus Dispatch.