Chris Brown’s reckless spending habits are quickly pushing the star towards bankruptcy, according to his ex-manager. Without intervention, a financial disaster could come as early as this year.
Chris Brown is spending lavishly and way beyond his means, according to court testimony from former manager Michael Guirguis. And at the current pace, a bankruptcy is not only likely, it’s practically inevitable.
Get ready for a crash. Part of the problem is that Brown is earning far less and spending way more, according to court paperwork. That, compounded with mounting debt and unpaid bills, seems like the perfect setup to a major financial calamity.
Guirguis, who goes by ‘Mike G,’ has witnessed those spending habits firsthand. Now, he’s spilling the beans on Brown’s outlandish expenditures and financial recklessness. In the sworn statement prepared for an LA Superior Court judge on December 22nd, Guirguis outlined those dangerous spending habits and lots of unpaid debt.
The testimony, obtained by Digital Music News, suggests that a near-term bankruptcy is almost a certainty.
“Brown’s Spending Habits and Solvency”
In a section of the testimony titled ‘Brown’s Spending Habits and Solvency,” Guirguis begins to detail shocking aspects of Brown’s finances. “I have worked with Brown since 2012 and have witnessed firsthand Brown’s lavish spending habits,” the testimony details.
“For example, Brown’s music video shoots often have exceeded his record label’s budget and Brown has paid out-of-pocket for the additional costs. These were, at times, six-figure overages.”
Guirguis also pointed to non-stop private jet transportation, without exception. “Brown also travels on private jets domestically and internationally, and spends anywhere from $50,000 to $200,000 per trip. He pays for this himself”
“In July 2016, Brown was fired from his Las Vegas residency at Drai’s Nightclub. Drai’s had paid Brown approximately $3 million a year.”
In terms of earnings, Chris Brown also lost a $3 million gig in Vegas, for violent and unprofessional behavior. It was another example of self-sabotage and financial self-destruction. “In July 2016, Brown was fired from his Las Vegas residency at Drai’s Nightclub. Drai’s had paid Brown approximately $3 million a year. Prior to terminating Brown, Drai’s Management Group, LLC had sent a letter warning Brown about his behavior.”
That gig was easy millions that simply went ‘poof’.
The testimony is happening because Guirguis and his management firm, NiteVision, are actively suing Chris Brown after a violent altercation. In summary, Brown attacked Guirguis after a disagreement, which led to the break-up and subsequent lawsuit. That suit alleges millions in damages. Though even with a victory, Guirguis is concerned that Brown will be unable to pay.
“NiteVision will suffer great or irreparable injury if Brown is allowed to continue dissipating funds that are unlikely to be replenished through new sources of income.”
“As NiteVision’s chief executive officer, I am concerned about Brown’s future solvency and his inability to satisfy a judgment in NiteVision’s favor. NiteVision will suffer great or irreparable injury if Brown is allowed to continue dissipating funds that are unlikely to be replenished through new sources of income.”
The testimony comes after a number of high-profile bankruptcies by r&b and rap stars. The short-list includes 50 Cent, Toni Braxton, Scott Storch, DMX, Lauryn Hill, and Rick Ross, among many others.
The case against Chris Brown is now proceeding to trial at LA Superior Court on March 7th.