Michael Vick’s Bankruptcy

There have been headline news lately concerning the size of Michael Vick’s $100 million, 6-year contract with the Philadelphia Eagles.  Some people are outraged that a convicted felon can be afforded so much money, however Mr. Vick will most likely only see a small fraction of that amount.  The star quarterback filed for bankruptcy in 2008, and under the bankruptcy plan approved by in the Bankruptcy Court in Virginia, Vick must repay his creditors by liquidating his assets and including future pay.  Fast forward to today.  It is estimated that Vick is only guaranteed 12-13% of the new contract.  Of the $100 million, only 40% is guaranteed because of the injury prone nature of football.  Furthermore, after taxes and payments to the bankruptcy court ordered creditors, Vick will be left over with only a fraction of the headline making contract.