Vick faces a financial challenge

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Vick faces a financial challenge

Football fans are not the only ones waiting to see Michael Vick get on the field today for the Eagles.

The bankrupt backup quarterback, once the highest-paid player in the NFL, is expected to be in uniform for a regular-season game for the first time since 2006. Vick now owes a lot of people a lot of money after his 18-month prison stint.

STEVE HELBER / Associated Press
On July 6, 2007, state and federal officials searched the grounds behind a home owned by Vick, then the Atlanta Falcons' quarterback, in Smithfield, Va. A federal grand jury indicted him on dogfighting charges later that month.
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His creditors will be watching to see if Vick is anywhere near the pre-prison form he showed when he was named to the Pro Bowl three times.

"I'm an Eagles fan, now," said Ross Reeves, a Virginia attorney who represents unsecured creditors in Vick's bankruptcy filing.

In 2004, Vick signed a contract with the Atlanta Falcons that could have paid him $130 million if he and the team stayed together through the length of that deal. Endorsements brought more cash.

But that contract and much of Vick's wealth went away when he went to Leavenworth after he pleaded guilty to

federal dogfighting charges.

As part of his Chapter 11 bankruptcy plan approved last month, Vick has liabilities of $20.4 million and has begun liquidating assets worth $9 million. Glance through some of the hundreds of court documents involving Vick and you'll find a picture of a wealthy man who was "not a sophisticated investor," as Vick said of himself in one civil court filing. He made bad choices on spending and whom he would trust with his finances.

Three homes, seven cars, and two boats are among the things Vick has had to sell - or try to sell in a down real-estate market - to pay creditors. He certainly wanted to take care of the people close to him. Vick - and the friends and family he tried to outfit in automobiles - drove Land Rovers, Cadillac Escalades and Mercedes-Benzes, among others. His eight-bedroom, 11-bathroom, gated-community home on a lake in Duluth, Ga., remains for sale, listed at $3.45 million.

Vick's various attorneys formed several limited partnerships, including MV7 L.L.C. and Divine Seven L.L.C., playing off his uniform number 7, but the businesses - often started with or for friends and relatives - sometimes faltered or failed. Seven Charms Farms and the horses involved did not work out for Vick. A rental car franchise and janitorial company withered.

By his account, he also went through a slew of financial advisers of varying qualifications, often giving them powers of attorney, including when he was in prison. As a result, Vick claimed, many of his investments evaporated, and sometimes money and other holdings disappeared without his knowledge.

In his bankruptcy filing, Vick listed 13 potential targets for his own civil litigation - including five former financial advisers, two insurance agents, a former business partner, and his former personal assistant.

Meanwhile, a former marketing agent, Andrew Joel - hired and let go before Vick ever played an NFL game - successfully sued Vick over a contract under which Vick was supposed to pay him 25 percent of his marketing deals. That suit helped push Vick into bankruptcy. Joel is now one of Vick's biggest creditors, owed over $4.5 million.

 

Bonus money targeted

The Atlanta Falcons also wanted their bonus money back for the years of Vick's contract when he didn't play. In 2004, he signed a 10-year deal but played just two seasons. Originally, the Falcons looked for roughly $20 million to be returned. They've completed negotiations and the final figure is less than $5 million, according to a source familiar with the case.

Under the bankruptcy plan, Vick gets to keep a house near Newport News, Va., where he grew up. As for cars, he hangs on to a 2007 Land Rover driven by his fiancée and mother of his two daughters, Kijafa Frink; a Lincoln Navigator driven by Tameka Taylor, the mother of his son; and a 2007 Infiniti. He can keep "certain personal property," and a pension plan.

Vick has to file monthly budget statements to the court for at least two years. His fiancée and his mother also are required to deliver financial statements. He is supposed to live on an annual budget of $300,000.

In other words: about what a player making the NFL minimum, after taxes, lives on.

Vick told the Eagles he would answer football questions last week, but no non-football questions. Friday, he took no questions at his locker.

"I'm happy it's over - I can move on with my life," Vick told reporters in Virginia on Aug. 27, when the bankruptcy plan was approved. "I think my lawyers did a great job. I commend the job. I commend the creditors' committee, everybody. We finally got it all together. I'm just happy we can move forward."

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