Litigation

Bankruptcy and the $150,000 a month Athlete

By John Darer

London's Daily Mail reports that former Manchester United midfielder Eric Djemba-Djemba, 26 now plying his trade in Qatar, was in such dire financial straits when at Old Trafford - despite his £75,000-a-month wage - that it is alleged he relied upon appearance and win bonuses to get by. It is also claimed the Cameroonian (who played for "the Mancs" from ages 22-24) ran a fleet of 10 4x4 vehicles and juggled 30 bank accounts at the time". He was declared bankrupt in at a Birmingham, England court last September.

One of the super market tabloids that I've browsed from time (while waiting in line) has a recurring section called "stars they're just like us" where readers can see stars doing activities of daily living. In this case some soccer players and other athletes share a similar need to protect against wasteful dissipation of their assets with a profoundly injured person who is about to receive a large settlement or award. In the athletes case their career could end suddenly and without proper preparation they could be in serious financial trouble. Unlike the athlete the tort victim may not have the capacity to earn back their mistakes.

Structured settlements, trusts and deferred income annuities and types of financial vehicles can be used to help preserve what has been won or earned.

Full post as published by Structured Settlements 4Real on March 14, 2008 (boomark / email).