Columbus Blue Jackets defenceman Jack Johnson has reportedly reached a bankruptcy settlement in court with six of his eight creditors two years after his personal financial crisis became public.
According to Aaron Portzline of The Columbus Dispatch, Johnson will give up most of the next two years of his NHL pay in the settlement, making him “the lowest-paid player in the NHL for the next two seasons,” said one creditor.
Johnson, 29, is in the sixth year of a seven-year contract in which he is paid roughly $4.4 million per season. He has liquidated two homes and a luxury car and will only keep a negotiated sum of money from his earnings for living expenses. The total is reportedly $246,000 each of the next two seasons.
The two remaining creditors continue to seek an agreement with Johnson, according to the report.
Johnson gave financial power of attorney to his parents, Jack Sr. and Tina, who borrowed large amounts of money at high interest rates. The defenceman and his agent have declined to speak on the matter.
Four of the creditors will receive 10 per cent of Johnson’s future earnings if he signs a contract worth over $4.5 million that lasts at least three seasons.
Johnson filed for bankruptcy on Oct. 7, 2014, after being served papers during the Blue Jackets’ playoff series against the Pittsburgh Penguins.
