NEWSReport: Britney Spears Was Spending Too Much Money and Going Broke When Sam Lutfi Was Her Manager
Oct. 18 2012, Published 9:06 a.m. ET
Britney Spears' former manager Sam Lutfi is suing The X Factor judge and her parents, Jamie and Lynne, for breach of contract, libel and defamation stemming from comments Brit's mom wrote in her 2008 book, Through the Storm: A Real Story of Fame and Family in a Tabloid World, which he claims forced him to endure "unfathomable amounts of ridicule and public scorn."
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The trial is currently under way, with Sam, Britney's parents, and fiancé Jason Trawick all scheduled to testify.
According to RadarOnline.com, Brit was not doing well managing her finances when Sam was in the picture.
"Britney was hemorrhaging money at the time when Sam Lutfi was in her life and acting as her manager. Her estimated net worth in 2007-2008 was $32 million dollars. However, she was spending about a whopping $700k a month," a source close to the situation tells Radar.
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In 2007 Britney had a very public meltdown, which included shaving her head and swinging an umbrella, and Sam claims he was unfairly blamed for the pop singer's issues that led to her behavior.
He wants a portion of Brit's earnings from her Blackout album, which he says he worked on, but her family doesn't feel he deserves anything.
Her worth is estimated "to be around $100 million dollars because of her lucrative X Factor contract, which pays her $15 million per year, and some $68 million dollars from her worldwide Circus tour in 2011.
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Sam wants a piece of her fortune now, which absolutely infuriates her parents. "The only reason that Britney is in the black now is because her dad took control and got Sam out of her life. Period. It's important to remember that Britney never signed a contract for Sam to be her manager, it was only an oral commitment according to Lutfi," the insider explains.
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According to the source, Brit was going broke fast under Sam, until her parents stepped in and took control of the situation.
"Britney also had huge legal bills because she was fighting ex-husband Kevin Federline for custody of their two sons. She probably paid around $2 million dollars in attorneys' fees in just a year and a half — and she still ended up losing custody of the boys to Kevin.
"Britney also leased several very high priced mansions in Malibu, including one house that she only spent three nights in! Britney also went on extreme shopping sprees and bought a number of luxury vehicles. Britney wasn't working during that time and didn't have a source of new income coming in. At the rate she was spending money when Sam was in her life, had it continued without her dad getting conservatorship, she would have been broke," the insider added.
The trial is expected to last about three weeks.
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