Not-So Done Deal: Vick To Pay $18 Million In Debt To Creditors First
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Michael Vick got a brand new $100 million deal over 6 years, and as controversial as that may be for some people, it’s not going directly to the bank.
via Philly.com:
"Under the terms of his agreement with creditors, Vick must dedicate a share of his earnings to paying back those to whom he owes money. The percentage he pays increases with his income, according to court documents. Ten percent of his first $750,000 in annual earnings goes to creditors, for example, with the share increasing to 40 percent of any money earned over and above $10 million."
Vick is due between $16 and $20million this year depending on what happens during his 2011 season, and that means the 40% clause will come into play immediately. His creditors are certainly happy about that.
And with this new $100 million contract, that’s not to say Vick is going to be undergoing any significant lifestyle changes. His bankruptcy laden prison term is still going to be affecting him for years to come:
"Vick owed roughly $20 million when he filed for bankruptcy. Through the end of June, he had set aside about $2.1 million for the trust collecting money on behalf of his creditors, according to court documents. As part of his bankruptcy plan, Vick is restricted to a budget that limits him to about $300,000 of personal-living expenses. The budget is scheduled to be in place through 2015. But at the end of October, Vick can ask the court to remove the restrictions. After paying taxes and his creditors, and setting money aside for his budgeted spending, Vick has been putting his remaining income into savings he can access later."
Vick said of the contract:
"“A lot of things happened in my life. Whether things were done right or wrong, it doesn’t matter anymore. I have an opportunity to move on with my life, and that’s all I prayed for, and that opportunity has come.”"
It’s a good thing Vick has the pieces in place to do whats best for him going forward. Saving money, laying low, and paying his debts. It really is an amazing story, however controversial, and he’ll continue to have the spotlight on him with every move he makes.
[Source: Philly.com]