Ryan Howard's Family Is the Worst

Ryan and Corey, via The Fightins

This portion of Ryan Howard’s counter claim to the lawsuit brought by his twin brother, Corey, describes just about everything that can go wrong when an otherwise well-meaning family comes into some money:

As twin brothers, Corey and Ryan grew up in the same household, played together, and went to the same schools. They were even college roommates. Their close sibling relationship continued into adulthood. Ryan loved Corey and believed Corey loved him. The relationship between them was one of trust and confidence.

Ryan was selected by the Philadelphia Phillies in the 2001 Major League Baseball draft. He was called up to the Phillies in 2004, was named National League Rookie of the Year for 2005, and National League Most Valuable Player in 2006, a year in which he hit 58 home runs. He has been selected to compete in three All-Star Games. He is the Phillies starting first baseman, holds several team and league batting records (including the Silver Slugger Award), and is under a long-term contract with the Phillies.

Ron Howard is the family patriarch. When he gave orders, directions or suggestions to family members, they were not to be questioned. It was considered wrong to disagree with him. After Ryan reached the big leagues, Ron warned him that unscrupulous people – acting as managers, consultants, advisors, or other professionals – could rob him blind and leave him financially unprepared for life after baseball. Ron Howard told Ryan that he could avoid that possibility by putting his business, personal and financial affairs in the hands of his family members, who had “valuable skill sets” and whom Ryan could trust. The idea was that the family would take care of business and that this would allow Ryan to focus exclusively on baseball. Ryan accepted his father’s advice. In fact, however, Corey (and the other family members) had no background in professional sports and no business dealings with or on behalf of professional athletes.

On information and belief, RJH was formed after the end of Ryan’s 2006 MVP season. RJH was intended to be a vehicle that would promote Ryan’s name and run his promotional activities. It was intended to grow, not to be a means for family members to become wealthy. Ryan has contributed more than $8 million to RJH over the years. Corey and other family members have made no financial contributions to RJH.

Pursuant to his father’s advice, Ryan chose family members instead of professionals to handle his personal affairs and to operate RJH. His father Ron acted as “Business Manager,” his mother Cheryl as “Chief Financial Officer,” his brother Chris as “General Counsel,” his sister Roni (Karen Cowley) as Executive Director of the Ryan Howard Family Foundation, and Corey as his Personal Assistant. All were paid with RJH funds through an automatic “Bill Pay” system set up by Cheryl Howard. Over the years Ryan signed business documents submitted to him by family members without carefully reviewing them. He did so with the understanding that they were acting as his representatives and in his best interests.

From and after 2006, Ryan and RJH made significant gifts to family members. A 2007 BMW was given to Cheryl. Ron and Cheryl received a 2011 Mercedes GL550 Truck. A 2007 Aston Martin was given to Ron as well. Corey’s close relationship with Ryan continued after Ryan became a success in Major League Baseball. Ryan shared his home in Philadelphia with Corey on a rent-free basis. Ryan bought Corey expensive Armani suits and other designer clothes, provided him a free phone, and allowed him generally to share in his lifestyle. As hereafter described, Ryan allowed Corey to obtain significant monies from RJH.

In or about early January 2012, Ryan served as best man to a friend of his being married in Mexico. Like Ryan, Corey and other family members were invited on a Caribbean cruise that would end at the wedding site. While Ryan was getting dressed for the wedding, Corey came to Ryan’s room.

Corey then presented Ryan with a series of agreements between RJH and family members and asked him to sign them. They included a “Consulting Agreement” with Corey as well as similar agreements with Chris and Roni. Corey told Ryan that these agreements were in his best interest. Trusting Corey as he always had, Ryan signed those documents without carefully reviewing them. Ryan was not given a copy of the “Consulting Agreement” after he signed it.

Despite his title as “Co-Manager Director of RJH Enterprises, Marketing and Personal Support Services,” Corey procured no marketing agreements or other commercial deals for Ryan or RJH after his execution of the “Consulting Agreement” and made no serious efforts to do so.

According to the “Consulting Agreement” attached to the Complaint, Corey would be compensated for his services at the rate of $92 per hour. At least $275,561.48 in RJH funds were disbursed to Corey in 2012 and 2013 alone. Corey kept no time records and provided no corroboration that he worked any number of hours. In fact, he performed no significant services.

Ryan’s family members have been paid at least the following amounts by RJH. Until August 2012, all payments were based on Cheryl’s authorization:

Ryan did not know the amounts of these payments until he took over RJH financials in July 2012. Neither Corey nor any other family member disclosed to him the amounts they were taking out of RJH.

By late 2011, Ryan had become concerned with whether Corey and his other family members were really working to protect his financial interests or were attempting to enrich themselves at his expense. Ryan told his father he wanted to take over his own affairs and have his family just be family. Ron Howard replied that, if Ryan wanted him to walk away from Ryan’s business affairs, Ron should receive $5 million himself and Cheryl should receive another $5 million.

When Ryan told his mother that he was thinking of separating his family from his financial affairs, she told him he couldn’t do that because RJH had entered into long-term contracts with his siblings that were intended to “protect” him. At this point in July 2012, Ryan called Chris who acknowledged the agreements. Only after this conversation were the agreements, including the “Consulting Agreement” with Corey, eventually forwarded on to Ryan.

In the summer of 2012, Ryan found that Ron, Cheryl, and Chris claimed to be members of RJH, even though they had not invested in it and even though he had not agreed to that. When Ryan inquired, he was told they had done that to “protect” him (presumably in the event of third-party litigation). Then, when Ryan took over financial control of RJH, his parents failed to turn over its books and records, as he had requested. Recently Ryan inquired of his mother about financial matters, but Cheryl told him she didn’t want to answer such questions because she was still trying to get over “the separation.” In September, 2012, Ryan saw a TV show titled “Broke” describing the financial plight of certain star athletes who had entrusted their business affairs to their family.

The “Consulting Agreement” was fraudulently procured, as evidenced by: (a) its shocking lack of consideration and one-sided terms, (b) the undue influence exercised upon Ryan and RJH by Corey and other family members, (c) the non-disclosure of Corey’s intent to reap millions of dollars in “compensation” through the year 2025 without performing any significant services, (d) the drafting of the Agreement by brother Chris, acting as “General Counsel” and allegedly acting in the best interests of Ryan and RJH, (e) the circumstances in which the “Consulting Agreement” was submitted to Ryan for signature, (f) the simultaneous submission of similar agreements with other family members, (g) the foul play involved in substituting different terms in the “Consulting Agreement” after it had been executed, and (h) establishing and maintaining RJH without disclosing to the sole investor and contributor that there were other members or who they were.

Gross.