Billionaire Bankrolling Miami Athletics With NIL Is Under FBI Investigation
John Ruiz contends that he is not a booster, so for sake of this article, we will call him a donor or a sponsor. Regardless of his title, Ruiz is the most important NIL point person for the University of Miami.
He (and his company) might be in big, BIG trouble.
Ruiz bankrolls a large number of Hurricanes athletes on multiple teams through his companies LifeWallet and Cigarette Racing. The billionaire (?) businessman set aside more than $10 million in funds for NIL deals alone and focuses most of his attention on the University of Miami.
Head men’s basketball coach Jim Larrañaga led the Hurricanes to the Elite Eight in 2023. He later recognized that a large part of his team’s run had a direct correlation to NIL funds.
Ruiz’s money played a big role in the assembly of Larrañaga’s roster. The same can be said for the women’s team, which also reached the Elite Eight.
Hayley and Hanna Cavinder were key pieces to that puzzle. Their relationship with Ruiz led to a direct inquiry from the NCAA and punishment for violations.
All of this goes to say that Ruiz and Miami athletics are intertwined at this point.
Greater funding leads to success in the NIL era. Ruiz is the donor/sponsor with the deepest pockets.
Or is he?
John Ruiz is running into money problems.
Ben Wider and Jay Weaver of the Miami Herald pulled back the curtain on Ruiz, who may not be is not doing as well financially as his vibrato and lifestyle would allude. He’s in trouble and the issues are only continuing to grow.
First and foremost, according to the Miami Herald, LifeWallet is the “target of federal civil and criminal investigations.” They are being led by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Southern District of Florida, as well as FBI and IRS agents.
Although the details are not readily available, sources told the Miami Herald that SEC investigators are looking into how Ruiz represented his company to investors— specifically about its value. Multiple witnesses have been interviewed by the U.S. Attorney’s Office in Miami.
That’s not good!
To make matters worse, LifeWallet’s value is tanking. It was once valued at more than $32 billion and was worth more than $10 a share right before it went public. Stock now trades for less than $0.25.
And then there are the legal issues.
Per the Herald, Ruiz and LifeWallet are facing multiple lawsuits. They claim that Ruiz and his company owe millions of dollars to sellers of various businesses that they acquired.
The money problems go much deeper and get a lot more technical, but the writing has been on the wall. Ruiz and LifeWallet are being very selective in what they share and how they operate.
It’s a mess.
