Know a rival -
John Ruiz – Miami’s “billionaire” booster
This is all speculation/opinion based on my reading around.
It looks like to me that Ruiz was estimated to be worth at least $21.4 billion based on the valuation of his company (MSP Recovery) before it was listed for trading on the NASDAQ. Well, a funny thing happened when the stock went public on May 24th of this year; It tanked within the first hour, losing over 60% of its value. Today the price is down almost 80% from its issue price. It’s been lower and even broke below $1.00 on June 14. The company has to maintain a minimum price ($1.00) to keep from getting booted off the exchange. Ruiz himself has recently bought the stock, presumably to support the price.
The idea behind the company seems sound but they are not without well-established competitors. The problem is they’re not making any money yet. It looks like their revenues in the 1st quarter of this year were around $9 million but with 90 employees and operating and interest expenses it looks like they have a net loss of $33 million in the quarter. My guess is that they need around $200m in annual revenue to be profitable, assuming their costs don't increase. They have a ways to go. jmo.
Ruiz owns around 65-70% of the company and his partner owns 24% so the available shares to the public is pretty tiny. Ruiz can’t sell his shares because any selling will crater the stock. It hard for me to see how his shares are worth anything, at least right now. jmo.
There’s some confusion as to what the market cap of the company is today. Barons and Marketwatch say $8.7 billion but sites that calculate the value based on shares outstanding and the stock price put the company’s market cap at around $28 million. Quite a discrepancy.
When the company went public presumably to raise capital, it actually lost money. It couldn’t pay the bankers that managed the listing so Ruiz and his partner had to loan the company $113 million of their own money to pay their bankers and provide some working capital.
I could write about the mechanics of the company, which I think is a good idea, but that would be long. I don’t think Ruiz is realistic (and neither do most analysts – see stock price) about how successful the company can be. He throws around big numbers but they don’t mean anything unless one doesn’t know what he’s talking about. The company and its public offering were described as sketchy by I think the publication was Forbes. I could see how the idea could make money but I think probably only a very tiny fraction of the impression I think Ruiz tries to give. He could be right; I just don’t see it and I haven’t found anyone objective that sees it either. jmo.
He’s not a debt collector but that’s sort of the game. This is an example of how it works. A person gets injured in a car accident, breaks an arm. The person goes to the hospital and gives them their health insurance card and so the Doctor and hospital and maybe pharmacy bill the health insurance company. That’s wasn’t supposed to be the way it works. The auto insurance company was supposed to pay the bill. So on behalf of the health insurance company Ruiz goes to the auto insurance company and says pay up. He gets to keep half of anything he recovers for his client, in this case, the health insurance company.
A lot of Doctors and hospital push bills off onto Medicare and Medicaid that should be paid by some other form of insurance, private, workman’s comp, etc. On behalf of the feds and states Ruiz seeks to identify these instances and recover for his client some of the monies they paid out. He has a sophisticated technology approach which match multiple data sources and scans medical bills line by line looking for wrongful billing. That’s the way it works.
Life Wallet, which is the vehicle he is using for his NIL deals, is a subsidiary of MSP Recovery. I think Life Wallet is basically a person's medical file on an app so the medical records are always handy if the person needs medical care anywhere in the world. jmo.
In an attempt to generate revenue Ruiz has been selling some “selected” amount of his “inventory” (more promising prospective cases) to hedge funds for what looks like pennies on the dollar but claims he’s not giving up his 50% cut in anything he can win from the cases. Apparently, he’s using hedge funds to buy out the interest of his original clients as they’re willing to take anything since they weren’t expecting anything to begin with. jmo.
There’s no question Ruiz has made millions in his career. There is a big question as to whether or not he is a billionaire in anything other than on paper which for all intents and purposes doesn’t appear to be worth anything right now. He owns the Cigarette racing boat company in which reportedly he installed his 22 year old son as the CEO. smh.
He also owns a $40m estate in Coral Gables and he just had a used 767 jet he bought from Australian Airlines retrofitted with a high end luxurious VIP interior. He made his money as a personal injury attorney. When you see the round up liability commercials on TV, that was one of the cases he was involved in.
He posted on twitter that his NIL budget (Life Wallet advertising using student athletes) is $10m per year. At the end of April he had spent $2.3m of that and the most recent report is his spending has reached $7m. He said On3’s report of $9.5m to Miami’s new QB commit was inaccurate.
There are some Miami fans who are wondering if Ruiz is legit. Some of them have that nagging sense that everything doesn’t add up.
On the Q&A Spyre had with members of the Volunteer Club earlier this week, it was reported that they said they had 600 members so far plus 25 others who were contributing. The 25 others I took to probably be our big guns. I'm pretty confident our guys are legit. jmo.
This is a list of reported Ruiz’s NIL deals from the end of April this year.