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Can Celebs Like Tiger Woods Weather the Economic Crisis?
por Rina •
Thursday, Jun. 09, 2011 at 2:43 AM
Golf champion Tiger Woods lost at least a portion of his income when General Motors ended its relationship with him.
Golf champion Tiger Woods lost at least a portion of his income when General Motors ended its relationship with him. The volatility of the auto industry was certainly a factor in Woods' sponsorship deal closing a year and $8 million early. But I'm not worried about Tiger-he'll roar on to other sponsorship deals. Other celebrities, however, like many of us, aren't that lucky.
Take Damon Dash, the estranged business partner of rapper Jay-Z, who may lose two of his Manhattan apartments to foreclosure for failing to pay $7.3 million on the mortgages. A judge has also requested the seizure of his Chevrolet Tahoe due to missed payments, he's got $2.1 million in claims against him for NY state taxes, and a lawsuit based on claims he didn't fully pay the law firm involved in his child-custody case. As one lawyer said, "...to borrow a phrase from my Kentucky homeland, they haven't got a pot to p--- in. They're broke."
Scott Storch, the former Roc-A-Fella Records bigwig who produced hits for Fat Joe, Beyonce, Dr Dre, and G-Unit (as well as being an ex-flame of Paris Hilton), had his Miami mansion foreclosed and his Ferrari repossessed.
I work with celebrities in my private practice and so I'm aware that they have all the same problems as Joe Six-pack, just more so. That includes the economic crisis. Just like all of us mortals, there are stars (and the people around them) who haven't received very good financial advice or have simply been too arrogant about their wealth, and now are in difficult situations. There's a lot we can learn from the problems they face, as well as from the economic recession we all find ourselves in these days.
Some big names have been rescued. Whitney Houston was deep into foreclosure proceedings for her New Jersey mansion because she was more than $1 million behind on her mortgage and taxes. Fortunately, she was able to sell the home. Ed McMahon, who was Johnny Carson's sidekick on The Tonight Show for decades, was facing foreclosure on his multimillion-dollar Beverly Hills home because he was $644,000 behind on mortgage payments; he was bailed out by Donald Trump, who bought the house and allowed McMahon to continue living in it. Michael Jackson nearly lost Neverland Ranch to foreclosure in May 2008, but got a reprieve from a real estate company that bought the $23.5 million loan that Jackson had been unable to pay back, which saved Neverland from the auction block.
We're all hurting. The 2008 presidential and local elections were swayed more by the heft of what's in our wallets than by the war in Iraq, our dependence on oil (foreign or otherwise), or whether or not gays could get married. In other words, what really counted was our economic well-being.
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