Johnny Damon took home $13M from the Yankees last year and no doubt has banked considerably more throughout his baseball career. But he told Ken Rosenthal of FoxSports.com that at present, “I can’t pay bills right now.”
Xavier Nady, who made $6.55M last season? Same deal.
The issues facing Damon and Nady — both New York Yankees outfielders and both clients of agent Scott Boras — stem from the alleged $8 billion fraud scheme involving billionaire financier Robert Allen Stanford.
Damon, 35, and Nady, 30, told FOXSports.com on Friday morning that their finances are frozen because of money they have with a Stanford company.
On Monday, the Securities and Exchange Commission froze all assets of three entities — Stanford International Bank, Stanford Group Co., and Stanford Capital Management — all managed by Robert Allen Stanford. Those were the only three entities whose assets were frozen, according to the SEC filing.
Holy You-Know-What. So, does that mean their life savings are in jeopardy?
Damon’s agent, Scott Boras, said his money is fine: “Our personal-management auditors have looked into the financial elements of it. None of our clients is in any financial jeopardy.”
Does Boras’ sentiment make Damon feel any better? Of course not.
Damon: “I’m not sure if the banks we owe mortgages would understand our money’s frozen, start putting penalties on stuff. The whole financial world is all messed up right now. Hopefully they will go on a case-by-case basis. I’m not sure the mortgage is going to be paid this month. But hopefully it’s only a couple of days.”
At the center of Stanford’s Ponzi scheme were CDs that yielded very high rates. Of course, those rates were fake. The only silver lining to this story is that Damon didn’t buy any of those.
Actually, there’s two bright sides to the story. Since Damon’s money has been “frozen” since Monday, he’s the only person in the Lower 48 who hasn’t lost money.