partially true.When your liabilities exceed your assets you're broke. Having a negative net worth is being broke. there are plenty of broke people who shuffle debt around and have liquid cash but still are broke. Hell he owes the government. Eventually he's gonna end up in jail if he isn't careful.
If he has a decent cash flow coming in...he's fine.
Athletes dont go broke because of spending...they go broke because lack of income.
Same for everyone else.
If this cuts his debts in half (for example)...that can be a world of difference.
And you only go to jail for IRS debts if you just ignore them completely...which it seems he's not.