Rihanna
- Thread starter Swanky
- Start date
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Rihanna says her accountant made so many boneheaded decisions that he blew her fortune and she was "effectively bankrupt" by the end of 2009.
The singer claims in new legal docs she had $11 MILLION in cash at the beginning of 2009. Rihanna says the accountant was not on the ball and she was horrified to learn at the end of the year she had $2 million left. To make matters worse, her expenses doubled, which left her on a financial cliff.
As for how Rihanna blew through $9 million in one year ... she says her accountant gave her the green light to buy a house priced between $7 and 7 1/2 million. So she took his advice. She ultimately sold the house for a $2 million LOSS.
She also claims her 2009 tour -- Last Girl on Earth Tour -- was losing money but the accountant never gave her the heads up.
The legal docs were filed in connection with a lawsuit Rihanna filed against her accountant, claiming gross mismanagement.
BTW ... Rihanna has rebounded nicely. Her net worth is now estimated at $43 mil.
Read more: http://www.tmz.com#ixzz2t7wjwm7P
The singer claims in new legal docs she had $11 MILLION in cash at the beginning of 2009. Rihanna says the accountant was not on the ball and she was horrified to learn at the end of the year she had $2 million left. To make matters worse, her expenses doubled, which left her on a financial cliff.
As for how Rihanna blew through $9 million in one year ... she says her accountant gave her the green light to buy a house priced between $7 and 7 1/2 million. So she took his advice. She ultimately sold the house for a $2 million LOSS.
She also claims her 2009 tour -- Last Girl on Earth Tour -- was losing money but the accountant never gave her the heads up.
The legal docs were filed in connection with a lawsuit Rihanna filed against her accountant, claiming gross mismanagement.
BTW ... Rihanna has rebounded nicely. Her net worth is now estimated at $43 mil.
Read more: http://www.tmz.com#ixzz2t7wjwm7P
I know that they are sold a "package deal" when they get signed that doesn't always work in their favor but is it really that hard for stars to pay their own bills; or at least check that bills are paid on time and check bank statements? I can't imagine a situation where I let someone else tell me that I can spend $7MM without knowing the repercussions. I understand that you may not be able to check your investments that closely; but you should know what's in your accounts.
Well it's not like they keep all of their money in a bank. It's spread across multiple investments mainly because they have a very short shelf life and they're advised to find ways to maximize their earnings. Many times, they're not liquid for a host of reasons especially if they do not have multiple places where revenue is generated. Smart ones are having deposits made to multiple accounts multiple times a month - creating a steady income stream.
Plus their royalties come to them monthly, bi-monthly, quarterly, etc. depending on the contract. When you hear that they sign a $5M deal with a sponsor, it's not like they get that in one lump sum; it's mostly paid over the length of the contract. When they headline a tour, they get paid any monies left after paying venues, insurance, production costs, and mountains of other costs - if their tour is going in the red, it starts coming out of their pocket.
Most of them are spending on plastic or advanced monies then the bills are paid directly through their accountants. Their accountants/financial manager make assumptions about future/expected earnings. They are advised to spend based on those assumptions and then when their fixed costs are so much more greater than the variable earnings, they file bankruptcy. So her accountant could have absolutely thought she had the upwards of $7.5 mil to spend on a home because he based that on expected earnings; however, if those earnings don't materialize the bills still have to be paid and that money has to start coming from somewhere.
Personally, I feel that they should all take lessons in how to understand cash flow analyses.
#Aubrih2014
I totally ship it.
I agree. She was young (20-21), maybe a bit naive and had no money management skills...a recipe for disaster. I have to give her credit for her resiliency. She could've drowned like many before her but she turned her ship around and bounced back. I remember reading somewhere where her mom was saying that Rih watches her finances like a hawk....hopefully that's true and she learned her lesson.
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Vogue Scans/Interview
This was one of her best interviews in a while....I'm so glad the focus is back to her and not on her personal life.
This was one of her best interviews in a while....I'm so glad the focus is back to her and not on her personal life.
http://www.justjared.com/2014/02/17/rihanna-supports-p6-campaign-against-russias-anti-gay-laws/
Rihanna wears a long coat over a leggy outfit as she arrives at Il Ristorante di Giorgio Baldi for dinner on Sunday (February 16) in Santa Monica, Calif.
The 25-year-old singer is celebrating her birthday this week on February 20 happy early birthday, RiRi!
Over the weekend, Rihanna posted a picture of herself sporting a P6 beanie.
P6, which is short for Principle 6, is a campaign that speaks out against Russias anti-gay propaganda law. Find out more about Principle 6, and be sure to grab some gear to show your support!
You can also read about P6 in the latest issue of Vogue magazine, where an editorial was featured about the campaign.
Rihanna wears a long coat over a leggy outfit as she arrives at Il Ristorante di Giorgio Baldi for dinner on Sunday (February 16) in Santa Monica, Calif.
The 25-year-old singer is celebrating her birthday this week on February 20 happy early birthday, RiRi!
Over the weekend, Rihanna posted a picture of herself sporting a P6 beanie.
P6, which is short for Principle 6, is a campaign that speaks out against Russias anti-gay propaganda law. Find out more about Principle 6, and be sure to grab some gear to show your support!
You can also read about P6 in the latest issue of Vogue magazine, where an editorial was featured about the campaign.
Attachments
Good thing people still care about her so that she's still able to make more money.
People really do need to be smarter with their financial decisions. But I think it's a common trend to earn alot of money and blow through it because you're not really budgeting because you think IM SO RICH, there are NO limits.
People really do need to be smarter with their financial decisions. But I think it's a common trend to earn alot of money and blow through it because you're not really budgeting because you think IM SO RICH, there are NO limits.
That happened in 2009. I think she's recouped the money that was mismanaged and more over the past 5 years.
Page Six reported today that she's settled with the accountants for 10 million, no idea if it's true or not.
I must have skimmed the date haha.
But I meant in a general sense, like she's been hustling HARD for the last 7 years now? And shows no signs of stopping because people still love her. (myself included).