This is breaking news as I type – A jury in Pennsylvania just found Bill Cosby guilty of sexual assault. He faces 10 years in prison. In case you aren't familiar with the details, dozens of women have accused Mr. Cosby of sexual assault. The jury deliberated for just one day. This particular case involved just one of the women's accusations but five women testified against him. His first trial ended in mistrial. Cosby was charged with three counts of aggravated indecent assault. He was found guilty on all three counts. Cosby now faces a maximum of 10 years in prison. Bill also faces dozens of civil lawsuits from the remaining women accusing him of abuse and defamation. These civil lawsuits have the ability to wipe his fortune away.
Examining Bill Cosby's Rise to Fame
Before these allegations surfaced, we all knew Bill Cosby as one of the most famous comedians and TV stars of all time. Even before he created The Cosby Show, he was one of the highest-earning celebrities on the planet. So much so that when his album contract was up in 1968, Cosby turned down a five-year $3.5 million contract (that's the same as $25 million today) to launch his own production company. He started pumping out his own comedy albums and would eventually go on to create the TV shows Fat Albert and The Bill Cosby Show (not to be confused with the sitcom of the 80s).
The Impact of The Cosby Show
As we know, it was the long-running success of The Cosby Show that would turn Bill into one of the wealthiest people in the entertainment industry. The show ran from 1984 to 1992, and at its peak, he was earning $4 million per episode (the same as $8 million today). In the last two decades alone, the show has generated over $1.5 billion from syndication. As the owner of 20% of the show's profits, he has earned at least $300 million from syndication deals alone.
Endorsements and Other Earnings
Bill has also earned tens of millions more from endorsements (most notably Jell-O), movie appearances, live comedy shows, and other less successful TV series. His 2014 comedy tour grossed $11 million over 100 shows, showcasing his lasting appeal as a performer. This financial success built an impressive real estate portfolio, worth over $100 million, with properties in Pennsylvania and Beverly Hills.
Understanding Bill Cosby's Financial Landscape
When you add it all up, we estimate that Bill Cosby's current net worth is in the range of $400 million. However, the recent legal troubles have begun to impact his financial status significantly.
The Decline of Earnings
The sex assault accusations have already put a dent in Cosby's earnings. His endorsement deals have vanished, and live shows are not happening anymore. Worst of all, those extremely lucrative syndication deals have completely dried up. Prior to these trials, The Cosby Show was still airing multiple times a day on BET and TV Land. Both networks have dropped the program, and syndication deals need to be renewed every five years. This is why Jerry Seinfeld and Larry David seem to make $200 million every couple of years—no one is buying Cosby reruns anymore.
The High Cost of Legal Defense
Interestingly, Bill's legal defense costs (which will easily run into the tens of millions) are being covered by his insurance company AIG. AIG initially tried to remove itself from liability, but in November 2016, a judge ruled in Bill's favor for the costs of his legal trial. AIG is not on the hook for any damages above and beyond legal defense.
The Impending Financial Threat of Civil Lawsuits
The biggest threat to Bill's fortune are the civil lawsuits he faces from other accusers. Civil cases are much easier to prove than criminal cases. Juries just need a simple majority, while criminal trials require a unanimous decision. Civil trials can't send someone to jail, but they can levy massive financial damages.
The Precedent Set by Other Cases
For example, OJ Simpson was ordered to pay the Goldman family $35 million, which was exponentially more money than he had at the time and forced him into bankruptcy. Similarly, Gawker was ordered to pay Hulk Hogan $140 million, which ultimately put them out of business permanently.
The Role of Wealth in Legal Judgments
Bill's massive wealth will have a major impact on the damages that are awarded. According to Florida sex abuse lawyer Brad Edwards, any jury assessing this starts with considering what amount of money punishes him given his net worth. Even if you said $20 million, you're talking about a fraction of his net worth.
Final Thoughts on Bill Cosby's Legacy
As we reflect on Bill Cosby's career and the recent events surrounding him, it becomes clear that the fallout from these legal issues could reshape his legacy forever. The potential civil lawsuits could lead to significant financial repercussions, and it remains to be seen how this will affect his net worth and public perception.
With at least eight, potentially 20 or more lawsuits depending on which accusers are deemed credible, the road ahead looks daunting. That's what is keeping Bill Cosby up at night.
