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Anyone else concerned about Ruiz's alleged net worth?

Katzenboyer

Freshman
Joined
Nov 17, 2015
Messages
1,359
Before going any further, I'm absolutely loving what the guy is doing for the program, and hope that it continues. This isn't an attempt to sh!t on a guy who clearly loves the Canes and is doing all he can to make UM into the power it was in its heyday.

But...is anyone else worried that it's funny money? For reference, I'm talking about this article, that came out in December (think it's behind a paywall). https://www.law.com/dailybusinessre...wyer-john-ruiz-turned-millions-into-billions/

The parts that concern me:

The SPAC made waves in financial circles for its $33 billion valuation, and the fact that Ruiz holds a 70% stake in the merged company, which means he stands to make almost $23 billion in the deal. Critics in the financial sector have balked at the valuation, noting that MSP Recovery forecasts no revenue for 2021 in SEC forms. (Ruiz noted that the new company has no revenue yet, but MSP Recovery has raised $800 million to date.)

But Ruiz felt the $33 billion valuation was low, considering the value of the claims his company currently holds.

According to Ruiz, MSP Recovery’s own projections valued it at $50 billion. He expects the deal to close early next year after surviving multiple rounds of SEC scrutiny and an investor vote. The revenue forecasts laid out in SEC forms project that MSP Recovery will earn $3.1 billion in revenue by 2023 and $23.8 billion by 2026. If it hits those targets, MSP Recovery will be taking in more money annually than Kirkland & Ellis, the world’s largest law firm by gross revenue.

So the company currently doesn't generate any revenue ($800 million in investor funds is not revenue, FWIW), but it's expected to generate $3 billion in revenue next year? And $23 billion in five years? That's pie-in-the-sky stuff.

The other issue is Lionheart Capital, the firm that set up the special acquisition company (SPAC) that is currently valuing MSP Recovery in the billions. Lionheart's (and its CEO, Ophir Sternberg) main claim to fame is that it brought BurgerFi public using the same SPAC it's using to make Ruiz a billionaire. But BurgerFi's founder is suing Lionheart and Sternberg in Miami-Dade, and there are a bunch of other lawsuits against the company for misleading investors (or outright stealing investor money) over the course of the last few years (just do a simple docket search on the Miami-Dade Clerk of Courts; there are a LOT of pending lawsuits against the company and Sternberg individually).

Am I missing something? It just seems to be too good to be true.
 

Empirical Cane

We are what we repeatedly do.
Joined
Sep 3, 2018
Messages
17,189
Before going any further, I'm absolutely loving what the guy is doing for the program, and hope that it continues. This isn't an attempt to sh!t on a guy who clearly loves the Canes and is doing all he can to make UM into the power it was in its heyday.

But...is anyone else worried that it's funny money? For reference, I'm talking about this article, that came out in December (think it's behind a paywall). https://www.law.com/dailybusinessre...wyer-john-ruiz-turned-millions-into-billions/

The parts that concern me:



So the company currently doesn't generate any revenue ($800 million in investor funds is not revenue, FWIW), but it's expected to generate $3 billion in revenue next year? And $23 billion in five years? That's pie-in-the-sky stuff.

The other issue is Lionheart Capital, the firm that set up the special acquisition company (SPAC) that is currently valuing MSP Recovery in the billions. Lionheart's (and its CEO, Ophir Sternberg) main claim to fame is that it brought BurgerFi public using the same SPAC it's using to make Ruiz a billionaire. But BurgerFi's founder is suing Lionheart and Sternberg in Miami-Dade, and there are a bunch of other lawsuits against the company for misleading investors (or outright stealing investor money) over the course of the last few years (just do a simple docket search on the Miami-Dade Clerk of Courts; there are a LOT of pending lawsuits against the company and Sternberg individually).

Am I missing something? It just seems to be too good to be true.
Best Policy In Life: Trust, but verify.
 

We the Boss

vapist-crypto trash-humanist
Joined
Oct 5, 2014
Messages
3,709
Before going any further, I'm absolutely loving what the guy is doing for the program, and hope that it continues. This isn't an attempt to sh!t on a guy who clearly loves the Canes and is doing all he can to make UM into the power it was in its heyday.

But...is anyone else worried that it's funny money? For reference, I'm talking about this article, that came out in December (think it's behind a paywall). https://www.law.com/dailybusinessre...wyer-john-ruiz-turned-millions-into-billions/

The parts that concern me:



So the company currently doesn't generate any revenue ($800 million in investor funds is not revenue, FWIW), but it's expected to generate $3 billion in revenue next year? And $23 billion in five years? That's pie-in-the-sky stuff.

The other issue is Lionheart Capital, the firm that set up the special acquisition company (SPAC) that is currently valuing MSP Recovery in the billions. Lionheart's (and its CEO, Ophir Sternberg) main claim to fame is that it brought BurgerFi public using the same SPAC it's using to make Ruiz a billionaire. But BurgerFi's founder is suing Lionheart and Sternberg in Miami-Dade, and there are a bunch of other lawsuits against the company for misleading investors (or outright stealing investor money) over the course of the last few years (just do a simple docket search on the Miami-Dade Clerk of Courts; there are a LOT of pending lawsuits against the company and Sternberg individually).

Am I missing something? It just seems to be too good to be true.
If he closes the spac deal he’s sitting on boat a load of cash. Key is closing.
 

itsacanething

Senior
Joined
Jan 31, 2012
Messages
4,745
It absolutely stinks - I don't care how downvoted I get.

Everything about the Ruiz's is off.
This! I have been trying to tell you guys this guy is so brash and in your face with his money. to me this story could easily end badly for us.

you all think he is the booster we need. I say be careful what you wish for. I wonder what Rad and Mario think about his style - him and junior (who I can't emphasize enough is just a young kid who I think graduated UM like last year) appearing in almost daily twitter spaces. tweeting NIL deals every night. Suing the NCAA. I appreciate he is trying to help the program and using his hard earned cash to do it but you have to be careful with these things.
 

Category69

Beer
Joined
Sep 30, 2016
Messages
958
Best Policy In Life: Trust, but verify.

Absolutely. We don't need another Nevin. I believe you have to look at his moves and wealth before this as well. Past can be telling. Nevin was basically a nobody who promised fools gold and people bought that ish up. Ruiz, he's obviously been more legit and been around for awhile but creating billions overnight is wack.
 

colperm

Sophomore
Joined
Mar 27, 2018
Messages
1,007
Before going any further, I'm absolutely loving what the guy is doing for the program, and hope that it continues. This isn't an attempt to sh!t on a guy who clearly loves the Canes and is doing all he can to make UM into the power it was in its heyday.

But...is anyone else worried that it's funny money? For reference, I'm talking about this article, that came out in December (think it's behind a paywall). https://www.law.com/dailybusinessre...wyer-john-ruiz-turned-millions-into-billions/

The parts that concern me:



So the company currently doesn't generate any revenue ($800 million in investor funds is not revenue, FWIW), but it's expected to generate $3 billion in revenue next year? And $23 billion in five years? That's pie-in-the-sky stuff.

The other issue is Lionheart Capital, the firm that set up the special acquisition company (SPAC) that is currently valuing MSP Recovery in the billions. Lionheart's (and its CEO, Ophir Sternberg) main claim to fame is that it brought BurgerFi public using the same SPAC it's using to make Ruiz a billionaire. But BurgerFi's founder is suing Lionheart and Sternberg in Miami-Dade, and there are a bunch of other lawsuits against the company for misleading investors (or outright stealing investor money) over the course of the last few years (just do a simple docket search on the Miami-Dade Clerk of Courts; there are a LOT of pending lawsuits against the company and Sternberg individually).

Am I missing something? It just seems to be too good to be true.
You make some good points. I just have one question, what good does it do our program to post this?


Can we at least wait until after NSD to pick holes in our largest booster?
 

Gables Cane

Sophomore
Joined
Nov 2, 2011
Messages
1,993
He is too much of a "look at me" booster. I much prefer the "let me work behind the scenes" kinda booster. You know...the kind that belong to the SEC top dogs and have quietly paid players for years without getting in trouble.

Times have indeed changed but this story might not end well. In the meantime, enjoy the ride 'cuz it will get bumpy.
 
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ItsAUThing.com

Following 'The U' since '82—covering it since '96.
Joined
Sep 12, 2017
Messages
1,883
I'd like the guy to get off Twitter Spaces and talking to a few hundred people at a time as there's no value in that for the program. It's a pointless ego stroke and attempt to be "the guy".

Last thing Miami needs to do is rub anyone's nose in anything—outside of winning big, should that day come.

Bragging about NIL deals and gaming the system—in public forums—is a recipe for disaster and will end bad, based on previous history.
 

Zbrod95

Thank God for the Columbus Mafia
Joined
Dec 13, 2015
Messages
22,225
You’re getting caught up over nothing. Men who open gigantic corporations like the one he’s opening have other businesses that create them millions in revenue as well.

Fun fact: most millionaires/billionaires didn’t get their wealth off of one business. They usually have way more revenue streams….and PS they also use a lot of credit and pay it back. It’s never their own money.
 

Canesfreak

The Sponsor
Joined
Oct 17, 2012
Messages
2,217
If the SPAC deal actually closes, he should be fine. SEC is currently reviewing the S-1. Again, the patent is unbelievable if it can work for large insurance companies - Humana, Blue Cross, etc. - it will save them hundreds of millions by avoiding double payments, overpayments, etc. Long term, I could care less how it works though - he will monetize it once it closes. Then it is up to the NewCo to generate revenue.
 

SPAMM

Redshirt Freshman
Joined
Apr 9, 2015
Messages
1,558
So he is a millionaire who can possibly become a billionaire? I don't see the worry!

I do wish he would simmer down for a min. His name is out there now and helped build some buzz. Fall back for a while
Having worked in health care finance for 30 years, some of the numbers and claims he throws around seem too good to be true.
 

DTP

Section 102
Joined
Dec 30, 2015
Messages
11,597
People need to stop thinking in the past. Every deal he inks has to go through the UM compliance department. This is NOT Nevin Shapiro breaking outdated NCAA bylaws. This isn’t under the table payments that can get the UM athletic department in hot water.

As for how much money he actually has? It’s not anybody’s business unless he bounces a check to you.
 
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