Michael Vick’s return to the NFL after serving a stint in prison could have a story book ending if he wins the MVP or manages to lead the Philadelphia Eagles to a Super Bowl victory.
But as Vick amazes and breaks records on the field, his finances continue to be in shambles. According to reports, Vick currently has a court-ordered restriction on how much money he can spend. The restrictions stem from a Chapter 11 bankruptcy that Vick filed in 2008.
Vick has earned $4.1 million since signing with the Eagles in 2009, but he owes creditors close to $12 million.
Until his debt is paid off, two-thirds of every dollar Vick earns will be paid to his creditors and to satisfy taxes. He can only spend $4,250 per month on rent and utilities; $1,355 per month for his two children’s private school tuition; $472 per month on a car; and his mother receives $2.500 per month.
His bankruptcy lawyers will also receive a substantial amount of Vick’s future earnings. Vick will have to pay $2.6 million to his bankruptcy lawyers and $800,000 to his agent between now and 2015.
With his outstanding play on the field in 2010, it’s likely that Vick will sign a new NFL contract with a very lucrative signing bonus. However, the more money he earns, the more he has to pay his creditors. If Vick earns less than $2.5 million, he would only have to pay 25 percent of his earnings to creditors. But if he earns $10 million or more, the percentage will increase to 40 percent.
Black American athletes have historically faced financial woes after earning millions during their sports careers. It should become mandatory for professional teams to provide financial literacy courses for every athlete who signs a contract. Vick will be paid well once the 2010 season is over, but it’s important that he seeks education from a trustworthy source who can teach him how to better manage his earnings this time around. –amir shaw
