Can a famous actor become bankrupt by his management team?
Can a famous celebrity be driven bankrupt by his management team?
Forbes Magazine recently published an article about the ways that bad financial management has caused some stars to lose their fortune and become bankrupt. For example, Mike Tyson's ex-managers were fined $9 Million for mismanaging his finances, and The Rolling Stones guitarist Ronnie Wood lost his fortune due to the expenses of his divorce from his wife Jo.
Financial management
Tyson and Wood are not the only celebrities whose personal fortunes have been lost because of poor financial management. The list is long with many stars who have lost their fortunes because of dishonest managers and advisors.
Finance
When Paris Hilton was spotted wearing a Bvlgari ring, the jewelry company's sales soared for over a month. This is an example of how influential a celebrity's taste can be. In the past, celebrities and high-profile individuals have had difficulties with controlling their spending habits and being honest with their finances.
Losing the credibility of the management teams
After these individuals get into financial trouble because of their extravagant spending, they often have to file for bankruptcy. Many times, these celebrities are in debt to their management teams and other parties associated with them. When this happens, the management team and other parties are left with a choice: take on the financial burden of paying off the celebrities' debt or file for bankruptcy themselves. When the management teams and other parties involved decide to file for bankruptcy, they not only lose money but also lose credibility among others in the industry.
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