Johnny Depp has made a lot of money over the years. The Jack Sparrow actor’s net worth is an estimated $400 million, according to The Richest. Just last year, Johnny earned $48 million, much of it from his role in Pirate’s of the Caribbean, reports Forbes. Yet, the latest rumor is that Depp is broke and on the verge of bankruptcy, so there seems to be a bit of a discrepancy.
Johnny Depp’s so-called financial scandal started when Depp allegedly discovered that his money management company, The Management Group, had neglected to pay Johnny’s property taxes resulting in $6 million in fines, according to the Daily Mail.
Johnny Depp further alleges that The Management Group defrauded him out of $40 million, according to USA Today. The management group then lodged a counter suit alleging that the multi-talented actor, known for such roles as Jack Sparrow, The Mad Hatter, Willy Wonka, and Edward Scissorhands, was just spending his own money unwisely. Their case revealed certain aspects of Johnny’s alleged spending habits including his monthly wine purchases.
Johnny Depp’s attorney clarified the situation with this statement quoted in the Daily Mail.
“Mr. Depp did not sue his former business managers for his own personal investment decisions or the “financial distress’ they wildly allege – Mr. Depp sued them for fraud and multiple breaches of their fiduciary duty, among other claims.”
So why didn’t The Management Group inform the Jack Sparrow actor if he was nearly out of funds?
Johnny Depp may have a good case, according to an attorney for Perkins Cole, a company that routinely advises wealthy families on tax, trust, and estate planning. Mr. Domingo explained to USA Today.
“They wanted him to sell the chateau or he’d be insolvent? Well, how did he get that close to insolvency (and not know it)? If what Depp’s lawsuit says is true there’s plenty unconventional about the way his money was managed.”
Didn’t Johnny Depp have the right to expect confidentiality from his management company? According to this list of standards for ethical conduct in regards to confidentiality listed on Accounting Universe.
“Keep information confidential except when disclosure is authorized or legally required.”
“Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates’ activities to ensure compliance.”
“Refrain from using confidential information for unethical or illegal advantage.”
Johnny Depp’s financial management group did not, however, protect his confidentiality but instead leaked his purchasing habits, alleging the beloved Jack Sparrow spends $30,000 a month on wine and that overall Depp spends about $2 million per month. Many other details of Johnny’s financial affairs have appeared in numerous publications.
So is Johnny Depp broke now? Is Captain Jack Sparrow’s net worth now zero even after all his great pirate movies? No, because net worth includes home equity and any property of real value. Even assuming Johnny’s liquid assets are depleted, something Johnny’s attorney dismissed as a wild allegation, the Jack Sparrow actor’s real estate and other investments are quite valuable.
Johnny Depp owns 14 multi-million dollar homes which he purchased for $75 million and an $18 million 150-foot yacht, according to People. Captain Jack Sparrow’s pirate booty also includes 12 storage units full of fine art masterpieces and memorabilia worth tens of millions of dollars.
The Jack Sparrow pirate treasure stashed away in those storage containers also includes gold and jewels set into very expensive fine jewelry, according to People. There are also at least 200 valuable paintings, including some by Andy Warhol.
Johnny Depp may also own multiple cellars full of investment grade wine, considering the alleged wine budget. Not even Captain Jack Sparrow could drink that much. Investing in wine is no more strange than investing in gold, silver, diamonds, or art. These are ways to invest wealth for a long term yield, that grows in value instead of being eaten away by inflation or lost on risky stocks. Money Crashers explains.
“Wines that are highly sought-after – whether due to pedigree, critical assessment, scarcity, or other factors – can cost as little as $100 per bottle early in their lives. As they approach and reach maturity, these wines can fetch many hundreds or thousands of dollars per bottle.”
Johnny Depp’s wine investments may take decades to pay off. It seems that wines in demand now were bottled in the 1970’s and 1980’s. Still, wise investments in wine could yield many times the original investment in a few decades.
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When Johnny Depp is 80-years-old, for example, if he selected his wine wisely, he could sell the wine he bought last month for $90,000 or maybe even $900,000 or more, depending on Johnny’s expertise.
Perhaps Johnny Depp would prefer to keep his money below ground in his own wine cellar. Like Jack Sparrow, he would probably rather bury treasure than risk it on the stock market or trust it all to money management firms.
Is Johnny Depp taking a lesson from Captain Jack Sparrow to keep that booty stashed in a safer place?
[Featured Image by Eric Charbonneau/Invision/AP Images]