Last night it was announced that Michael Vick has signed a $100 million contract extension with the Philadelphia Eagles. But thanks to bankruptcy court, the line of creditors waiting to get paid will likely see more of that money this season than Vick will.The person that is celebrating Vick’s new contract the most might be his former agent, Andrew Joel of Joel Enterprises (not to be confused with Vick’s current agent, Joel Segal). Joel is one of several creditors that Vick was ordered to pay more than $12 million by 2015. Of that total, a bankruptcy judge ruled that Vick owes Joel $6 million.
But even though Vick earned nearly $8 million last season, it is unlikely that Joel saw any of that money. A look at the court documents showed that Vick was ordered to pay hefty sums to his bankruptcy lawyers, taxes, and a fixed budget. And according to Joel, the money Vick owes to the Atlanta Falcons as repayment for his signing bonus has priority over Vick’s former agent.
According to the repayment plan, Vick was to pay his creditors 30 per cent of his 2010 income, or about $5.5 million. That leaves more than $7.0 million still owed to his creditors. This suggests that if Vick makes $16.7 million this season (the average annual value of his new contract), he will be able to pay off more than $6.5 million of the remaining debt and Joel will likely receive all or most of what is owed to him this season.
Nobody should feel sorry for Vick. More than $40 million of his new contract is guaranteed. And at some point, his debts will be paid and the money will once again start spilling out of his pockets. But until then you can forgive Vick’s former agent if he is walking around with a big smile on his face today.