Mike Vick agrees to a contract extension

[pharelfor3]

My man

 

[storm2006]

Link: http://www.sbnation.com/nfl/2011/8/...tract-philadelphia-eagles-bankrupt/in/2156385

[h1]Michael Vick's $100 Million Contract With Eagles Will Help With Bankruptcy Plan[/h1]
Aug 30 8:53a by David Fucillo

Read More: michael vick contract extension, Michael Vick (QB - PHI), Philadelphia Eagles

Word out of Philadelphia Monday evening indicated Michael Vick had agreed to terms on a six year contract worth upwards of $100 million. This is Vick's second contract "worth" nine figures and acts as fitting bookends to his dog-fighting prison sentence. The first contract represented what at the time seemed like the heights of Michael Vick. The prison sentence resulted not only in a fall from grace with the fans, but an epic financial fall that left him in bankruptcy court.

As part of Michael Vick's rehabilitation, he has been working to cure his financial woes that left him owing upwards of $20 million to various creditors. The math is incredibly confusing but Lester Munson took a stab at the documents last December while Vick was earning $5.25 million in his second season with the Eagles.

Vick's bankruptcy has led to thousands of pages of documents dealing with a host of assets and liabilities. The court finally worked out a deal with Vick that resulted in limited access to assets while trying to work out payment on the numerous debts. Part of it was based on Vick eventually earning a sizable contract in free agency and that goal has been reached with this new contract.

Vick's court-approved bankruptcy reorganization plan created a schedule of payments based on the salaries Vick earned in a given year:
[table][tr][td]Income[/td][td]Percentage to Creditors[/td][/tr][tr][td]$0-$750,000[/td][td]10 percent[/td][/tr][tr][td]$750,001-$2.5 million[/td][td]25 percent[/td][/tr][tr][td]$2,501,000-$10 million[/td][td]30 percent[/td][/tr][tr][td]Above $10 million[/td][td]40 percent[/td][/tr][/table]
Vick's deal is not backloaded like many $100 million deals and in fact he could earn upwards of $16 million each of the first three seasons. He'll pay 40% of that to creditors to help pay down $20 million in debt. Under Vick's previous contract, two-thirds of every dollar he earned was going to the IRS and creditors. He has been living under a court-ordered budget that provides $4,250 for rent and utilities each month. He has a car allowance of $472 per month, a limit of $2,500 of allowance for his mother, and $3,000 in support for his ex girlfriend and their son.

Vick's new contract provides $40 million in guaranteed money. It would not take much time to deal with his current debts based on this new contract. At the same time, one has to wonder how Vick will handle his financial windfall given the lessons he learned from his previous financial downfall.

Any changes to his current plan require court approval. If he was prepared to pay off his debts in one fell swoop, I'd imagine the court would be content to get it taken care of with relative ease. The question now is what lessons he has learned from his prior mistakes and how that will impact his current financial situation. He is close to being back in a position of financial strength. Even outside the dog-fighting, he faced a tough lesson with regards to his personal finances. Let's hope he learned a lesson in that regard as well.

 

[uncalled4boy]

 

[supersaiyan415]

Originally Posted by chokeonsmoke

to bad he's not.on my team

what couldve been....

 

[deuce king]

"Oh happy day..........."

 

[mr marcus]

hopefully vick pay his whole debt off w/ the signing bonus.....get it over with

 

[da doc03]

 

[quincy powell]

The hate I've heard over this mans contract by certain fans is disgusting.

 

[Lunden]

i dont know the details in his contract but can he pay off ALL his debts with this new deal?

 

[caerus]

Originally Posted by PleaseSayTheBaby23

i dont know the details in his contract but can he pay off ALL his debts with this new deal?

Man, he'll pay off his debt midway through year 1 

Someone said he has only (Only LOL) $10 Million left to pay off his debt.

 

[dr mantis toboggan]

Originally Posted by Caerus

Originally Posted by PleaseSayTheBaby23

i dont know the details in his contract but can he pay off ALL his debts with this new deal?

Man, he'll pay off his debt midway through year 1 

Someone said he has only (Only LOL) $10 Million left to pay off his debt.

He actually owes $19 mil. This article provides a good breakdown of the structure of his Chapter 11 plan.
http://blogs.wsj.com/bank...big-bucks-for-creditors/

 

[kix4kix]

Props to Vick on the new deal, he took all the blame, and served his time. A true comeback, he don't need that endorsement money anyways. Watch them come knocking after the eagheads win the ship though. Vick = an inspiration.

 

[Peep Game]

Originally Posted by Quincy Powell

The hate I've heard over this mans contract by certain fans is disgusting.

I knew that was gonna happen anyway. What disgusts me more is that if Vick had anything to do with the killing and slaughtering of people, he would
have just gotten 1000 hours of community service. Dogs >>>>> Us

 

[mez 0ne]

Good for him but 100M is a bit of an over-reaction for his 1/2 - 3/4 season last year. He'll be good for them though but the expectations will be extremely high.

 

[storm2006]

Originally Posted by Dr Mantis Toboggan

Originally Posted by Caerus

Originally Posted by PleaseSayTheBaby23

i dont know the details in his contract but can he pay off ALL his debts with this new deal?

Man, he'll pay off his debt midway through year 1 

Someone said he has only (Only LOL) $10 Million left to pay off his debt.

He actually owes $19 mil. This article provides a good breakdown of the structure of his Chapter 11 plan.
http://blogs.wsj.com/bank...big-bucks-for-creditors/

Correct me if I'm wrong, but didn't he originally owe ~$19-20M and he's been paying it back so it's something less now?

 

[airjordan jb23]

Good for him

Its good to see he made a comeback, got a nice contract, & is able to pay off his debts now.