Athletes’ Real Estate Investment Placed on Waivers
Athletes and Celebrities June 21st. 2008, 11:00am
Patriots offensive lineman Matt Light, Blue Jays ace Roy Halladay Vladimir Guerrero and a handful of other notable athletes loaned more than $8 million to Atherton-Newport, a California real estate company, that teamed up with Fidelity Investments and Citigroup Inc. to invest in apartment complexes before filing for bankruptcy protection.
The loans the athletes executed (cyber thumbs up for usage of proper business term) to Atherton-Newport are unsecured (cyber high five) -Â because there’s no collateral (cyber fist pump). Hopefully Atherton-Newton will soon perform its due dilligence (cyber f-yea).
Atherton-Newport said in its bankruptcy filing it borrowed $40 million from about 200 individuals. In return, the company promised annual interest of 15 percent to 21 percent on their investment. Among the biggest athlete investors were Cy Young winner Halladay, Guerrero and Chicago Blackhawks goalie Nikolai Khabibulin. Bankruptcy filings show the men are owed $1.17 million, $1.18 million and $1.33 million, respectively.
And here we thought Mike Tyson was foolish when he spent millions on the purchase of two bengal tigers.
Star Athlete’s Real Estate Investment Sours [M-Live]
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9 Responses to “Athletes’ Real Estate Investment Placed on Waivers”
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June 21st, 2008 at 11:11 am
G-mail? La-de-da Mr. Rockefeller
June 21st, 2008 at 11:51 am
Is that a photo of Matt Light holding the firm hostage for his money back?
June 21st, 2008 at 12:51 pm
More likely pointing it at His Business Manager Who Recommended The Investment.
June 21st, 2008 at 12:55 pm
Assuming this investment was made in 2000, it wasn’t that dumb of a move. Assuming this investment was made 2004-2006, their financial planners/business managers should be shot. Assuming this investment was made 2006-2008, the athletes themselves should be shot.
June 21st, 2008 at 12:56 pm
I have issues with the JSF email from time to time. And, I’m moving up in the world.
June 21st, 2008 at 1:31 pm
I’m not speaking ill of every-single professional athlete but the term Dumb-Jock has been definitely earned
June 21st, 2008 at 4:12 pm
ChiTown, it’s not like they gave money to a seedy company that no one’s ever heard of. I think Fidelity Investments and CitiGroup are pretty respectables companies. Just sounds like some bad luck to me.
June 21st, 2008 at 4:44 pm
15-21% annual interest??!! If it sounds too good to be true…
June 21st, 2008 at 7:35 pm
Where I’m from, there is this thing called UCC Art. 9. Who the fuck gives up unsecured money? Professional athletes.