Celebrity Profile #1 - Jack Clark
I figured I would start this series with one of the more famous athlete/bankruptcy case. For those who don’t know, Jack Clark was a Major League Baseball player who had a nice, but relatively obscured careers. Three times in his career, he was listed as one of the highest paid players in the game.
In August of 1992, he stunned the baseball world by filing for bankruptcy. Why was it so stunning? He was in the 2nd year of a three year contract guaranteed to pay him $2.9m each year. In the filing, he listed assets of approximately $4.8m and debts of about $11.5m. Some of his assets included 18 luxury cars. Yes, you heard that correctly. 18 cars!
That astounding number of cars was just part of Clark’s problem. He had major credit card debts, multiple houses and even a six figure federal tax bill. Supposedly he even blamed his wife for their financial issues. How many of those 18 cars were hers, do you think?
Even in the 80s and early 90s players were making good money and they can definitely use that money for whatever they want. That being said, they shouldn’t be able to abuse the system and file some papers and get out from all that debt. He made 10s of millions over his whole career and the entire fault for his financial issues rest with him.
Jack Clark is exhibit A why everyone needs a financial planner/advisor. Just like you would never operate on yourself or represent yourself in court, why do people think they can do financial planning themselves? If multi-millionaires need help, what makes you think you don’t? People are conditioned to answer calls with “I’m all set” or “I’m working with someone” even if they aren’t. I am sure Jack Clark said that to someone at some point. Look at him now. If you answer an advisor’s call like that, I hope you never end up in same situation as Clark. If he had a business manager or advisor, that person would make sure he could never spend in a lifetime, the money he made in just a few years.
May 3rd, 2008 at 3:16 am
[...] Impersonal Finance wrote an interesting post today on Celebrity Profile #1 - Jack ClarkHere’s a quick excerptFor those who don’t know, Jack Clark was a Major League Baseball player who had a nice, but relatively obscured careers….In August of 1992, he stunned the baseball world by filing for bankruptcy. Why was it so stunning?… [...]
May 13th, 2008 at 2:42 am
Just because Jack Clark had a problem managing his finances doesn’t mean that everyone does.
I don’t operate on myself or represent myself in court, but at the same time, I don’t hire a chauffeur to drive me around or a cook to make all my meals either.
I’ve often wanted to get a financial planner to see if they’d be truly helpful or steer me to investments that they have a vested interest in.
January 13th, 2009 at 10:24 pm
I agree with you that if you are not good at managing your funds, you really need a professional help, I would better go for professional help than boasting about managing it on my own.
March 13th, 2010 at 1:12 am
Interesting stuff, since I knew Jack and his wife Tammy back in the 80’s. I was an employee of the bank they had their account. She always came through with various models of mercedes and Roll Royce cars and was made up like she was attending some glamourous evening out. I recall she wore tons of diamonds. Rings, necklace and earrings. She took care of the banking. They were both young and probably figured on an endless supply of money. Of the two, he was left in the dark. But then, who in their right mind would invest in 17 automobiles that depreciate while using. I can see if you are collecting as antiques. I am sure they both look back with regret.