Britney Spears Was Going Broke When Sam Lutfi Was Her ‘Manager’

By:Radar Staff

Oct. 18 2012, Published 10:30 a.m. ET

By Jen Heger - RadarOnline.com Assistant Managing Editor

As jury selection continues in Sam Lutfi's explosive lawsuit against Britney Spears and her parents, RadarOnline.com has exclusively learned that The X-Factor judge was going broke during the time Lutfi was in her life as her so-called "manager," RadarOnline.com has exclusively learned.

"Britney was hemorraghing money at the time when Sam Lutfi was in her life and acting as her manager. Her estimated net worth in 2007-2008 was $32 million dollars. However, she was spending about a whopping $700k a month," a source close to the situation tells RadarOnline.com.

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"Britney also had huge legal bills because she was fighting her ex-husband, Kevin Federline, for custody of their two sons. She probably paid around $2 million dollars in attorneys' fees to her family law attorneys in just a year and a half, and remember, she ended up losing custody of the boys to Kevin. Britney also leased several very high priced rental mansions in Malibu, including one house that she only spent three nights in! Britney also went on insane shopping sprees and bought a number of luxury vehicles. Britney wasn't working during that time and didn't have a source of new income coming in. At the rate she was spending money when Sam was in her life, had it continued without her dad getting conservatorship, she would have been broke," the insider added.

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As RadarOnline.com previously reported, Lutfi is suing Britney and her parents, Lynne and Jamie Spears, for breach of contract, libel and defamation for comments Lynne made in a book about her life. The trial is expected to last nearly three weeks, with Lutfi, Lynne, Jamie and Brit's fiance, Jason Trawick, all scheduled to testify.

According to court docs recently filed in Brit's conservatorship, as of 2010, the Toxic singer has $32 million in assets. However, Brit's fortune is estimated "to be around $100 million dollars because of her lucrative X Factor contract, which pays her $15 million per year and the $68 million dollars from her worldwide Circus tour in 2011. Sam wants a piece of her fortune now, which absolutely infuriates her parents who are also being sued by him. The only reason that Britney is in the black now is because her dad took control and got Sam out of her life. Period. It's important to remember that Britney never signed a contract for Sam to be her manager, it was only an oral commitment according to Lutfi," the insider explains.