Saturday, December 04, 2010

Despite success on field, Michael Vick still faces massive debt - Shutdown Corner - NFL  - Yahoo! Sports

'Despite success on field, Michael Vick still faces massive debt - Shutdown Corner - NFL - Yahoo! Sports:
"Despite earning $4.1 million since signing with the Philadelphia Eagles, Vick lives on a shoestring budget set for him by a court-appointed trustee. Most of his salary goes toward paying back creditors Vick owed before entering federal prison. Those creditors, which include banks, former business colleagues and former endorsement partners, were protected because of Vick's 2008 filing for Chapter 11 bankruptcy.
And a more complete article from ESPN:
"...Vick is now governed by a monthly budget that is buried deep in the thousands of documents filed in his bankruptcy case. It is part of a court-approved "reorganization plan" for his finances, a remarkably complex arrangement that is described in a dense, often impenetrable 112 pages.
Under the terms of the budget, he is permitted to spend $3,500 each month for rent in Philadelphia, with another $750 for "utilities and miscellaneous."

The ESPN article goes on to describe the thousand of pages of documents that are created for every transaction and how Vick had gone on a pre-bankruptcy asset distribution scheme.

Also here is a remarkably thorough description of bankruptcy through history (fascinating) and around the world from Wikipedia.

Interesting case for class.

1 comment:

Anonymous said...

$4,250 doesn't sound like a shoestring budget to me. I lived entire semesters on less than that.