Columbus Blue Jackets defenseman Jack Johnson, whose financial saga first made headlines two years ago, has reached a settlement with six of eight creditors, according to the latest developments from the Columbus Dispatch.
Johnson, who turns 30 years old in January, filed for bankruptcy in 2014 in a high profile, highly complicated case.
It’s been previously reported that his financial troubles came after his parents Jack Sr. and Tina Johnson allegedly borrowed millions of dollars in loans, accumulating massive amounts of debt in Johnson’s name after he gave them power of attorney, leading him to eventually file for bankruptcy.
Four of the creditors — Capital Holdings Enterprises, Capital Financial Holdings, CapStar Bank and Rodney Blum, a Republican congressman from Iowa — settled for a deal in which Johnson will pay them collectively $2.8 million, or 35 percent of the $8 million-plus debt, according to the court documents.
In addition, the four creditors will get 10 percent of Johnson’s future earnings if he signs a new NHL contract in 2018 that exceeds $4.5 million total over a three-year term, a virtual certainty given his age and status in the game. The defenseman’s current deal with the Blue Jackets ends after the 2017-18 season.
Two other creditors, Pro Player Funding and Cobalt Sports, did not agree to the initial agreement but later reached their own settlements with Johnson. Pro Player Funding will get $1.65 million from Johnson, and Cobalt will get $775,000, or 58 percent of the roughly $4.1 million they were owed.
Johnson will keep $246,000 for “living expenses” each of the next two seasons. In the following three seasons, he’ll get to keep $277,050.50 per season until all his creditors are satisfied.
In April of 2015, it was reported that Johnson was used as a pawn in an alleged Ponzi scheme.
Former NFL player Will Allen was named as one of two people who allegedly ran the Ponzi scheme.
Johnson has played 641 career NHL games. He began his career with the L.A. Kings before being traded to Columbus in February of 2012.