UPDATE: Vick isn’t Going to See Anywhere Near $100 Million

Vick_planking_superThanks to Tom for the Photoshop

Gasp! $100 million?! Dude got paid.

Screen Shot 2011-08-29 at 11.46.31 PM

Not as much as you think, Jimmy.

According to this December 2010 ESPN article, Michael Vick remains on a very strict court appointed budget. Let’s break down some of the details: [via The Centsible Life]

• Two-thirds of every dollar Vick earns goes to creditors and taxes.

• The rest of the money is strictly controlled. Think of it as an allowance.

• Vick can spend $4,250 per month on rent and utilities and $472 per month on a car. His mother, who was on Vick’s payroll during his headier, pre-prison days, can receive $2,500 per month.

• Other obligations Vick owes include mortgages, child support, fees for his agent (who gets $800,000 through 2015) and for his tax lawyers (who will eventually receive a total of $2.6 million). The allowance does allow for Vick to pay $1,355 per month for private school for the two children he has with his fiancee, Kijafa Frink. (Munson calls it a “rare bit of extravagance.”)

• His creditors stand to receive $12 million through 2015, provided Vick continues to receive a multi-million dollar salary.

 

It gets better (well, worse). The more Vick makes, the more he pays. Here’s the breakdown from ESPN:

Schedule of Payments
Income Percentage to Creditors
$0-$750,000 10 percent
$750,001-$2.5 million 25 percent
$2,501,000-$10 million 30 percent
Above $10 million 40 percent

- does math, carries 2, solves for x, divides by Starship 7 – Yep, Vick will be making more than $10 million a year. So, instead of heeding his girlfriend’s advice and planking on $100 million, Vick may want to grab a couple of lawyers, an accountant, a TI-83 (do they still make those, or did Steve Jobs just shit all over that industry?), and a comically large checkbook, because he’s going to see nowhere near $100 million.

As has been reported, only $40 million is guaranteed, a figure that is in line with most large quarterback contracts (more here). This gives the team an out, should they need it. Raise your hand if you think Vick plays in years five and six of this contract without his leg or head falling off?

- looks around, surveys room… “Yes, you in the back… oh, just an itch? OK, no one then.” -

You all get As.

Basically, the Eagles have agreed to pay Vick as one of the best players in the league for the next 3-4 years. Then, should his running style and aging body render him completely useless, they could, in theory, cut all ties (though they might have to absorb a large cap hit depending on the signing bonus). While they may anticipate him playing all six years of the deal, I just don’t see it happening (Steve Wyche of NFL.com agrees). Either way, one can argue that we’re not going to see a repeat of last year’s performance. Here are some stats I used in the USA Today Football Preview (on newsstands now!!!):

 

Through the first six games of 2010, Vick eclipsed a 100 QB rating four times. In the final six games? Just once.

In the first seven games of 2010, Vick didn’t throw one interception. He threw six in his final five games, plus one season ending pick in the playoffs.

Vick’s yards per attempt and completion percentage were also down in the second half of the season. And he was sacked more, too: 15 times in first six games, 19 in final six.

 

None of those stats are horrific by any means- in fact, they’re still pretty good. But what they do show is that after a few games, Vick was no longer able to sneak up on other teams, who were quickly learning how the Eagles were going to use him. The opposition may never be able to stop Vick, but, like during his first go-around, they’ll find ways to contain him. That being said, he is still an elite quarterback and the Eagles were wise to lock him up for their “all in” period. 

Vick, however, isn’t going to be as rich as you think. While it has been reported that he owes around $20 million to creditors, only $12 million in restitution is required as part of the above outlined plan, which runs through 2015. According to an accountant, taxes and agents fees will get removed before the 40% is deducted. So, using the $40 million guaranteed figure as a base, we do math thusly (assuming the numbers in the ESPN article are accurate): 

If Vick only earns the guaranteed $40 million:

$40 million – (roughly) $15 million in taxes and $1 million agent fee = $24 million

$24 million – 40% to creditors ($9.6 million) = $14.4 million

 

Only around $15 million of Vick's “$100 million contract” is guaranteed to find his pocket. Of course, he does have some endorsement deals and may get more. They could help him earn more money, which would allow him to pay back his creditors and see a larger percentage of his 40 million guaranteed bones.

Dude got paid, but not as much as you think. The big winner here? His creditors- they get their money back. Or at least most of it.

UPDATE: Darren Rovell, who has significantly more resources than I do, says it's actually going to be a lot less. There are substantial lawyer and accountant fees that Vick has to pay, among other restrictions. He could receive as little as 11% of what the Eagles pay him.

36 Comments

  1. Great post. Problem for Vick is that most athletes who just signed a $100M deal also could expect a sizeable number of endorsements both locally and nationally. But with Vick, he’s still viewed as poison for the most part for those companies.

  2. Maybe the best non-cheerleader-eats-cupcakes-in-her-panties post I’ve seen here. Great “snark” but even better news worthiness

  3. dude will see more of the 100 million than you or me so why does it matter. People always become accountants when other people money is involved.

  4. His mother makes more a month than I do (after taxes). Just sayin’

  5. Barbecuing Naked

    August 30, 2011 at 10:41 am

    20 wings

  6. why the fuck does anyone care?

  7. The problem with all your little math games here is the NFL isn’t Mike Vicks only source of income. So if you find out what all his endorsement deals are, then you can find out what he is actually paying to creditors. How do you know hes not almost paid off? You say he has to pay back 12 million, but then in your math you show him paying back more than 12 million. This post is fucking stupid. You dont really know shit about his money situation so who the fuck cares. If he only owes 20 mill all together. I see another 80 mill in this contract PLUS all his endorsements cough NIKE cough. Not to mention the dude is the #1 ratings drawer for NFL games… you think he dont got more deals coming??

  8. Jeff- Let me advise some reading comprehension there, chief. We actually have him paying back less than 12 million (9.6). The other “80 mill” in his contract isn’t guaranteed (only 40 is), and that obviously doesn’t include taxes. Yes, you’re right, he will get endorsement deals (and has a few already), but that doesn’t change the fact that he’s only guaranteed a small percentage of his “100 million contract.”

  9. Jeff is factually wrong. Vick is guaranteed nothing more than 40 millon. Even if Vick does have endorsement deals, there is STILL a $3 million delta in what he owes his creditors.

  10. This site is a clusterfuck. Can you please cover SPORTS
    Every post is a plug for shirts or drink specials, childish profane commentary that 10 years wouldnt find funny or like this one, an article with no substantiation whatsover

  11. Any idea how much this guy owes? Assuming he’s already paid probably $5M the last 2 years, I can’t believe he still owes $40M (40% of everything over $10M). I mean it’s a bankruptcy, the creditors agreed on a settlement (not 100% of all that was owed).
    This is the best part: ‘his car allowance is only $472 per month’
    What is that, maybe a $30k SUV?

  12. Nevermind:
    It’s based on Vick’s playing well enough to earn a bonanza free-agent contract at the end of the current season, and it provides for total payment to his creditors of more than $12 million between now and 2015.
    I’m assuming he can cut a check with the signing bonus and be done (usually this is how a bankruptcy works)

  13. Good post KS. All this does is illustrate how his contract looks huge on paper, but isn’t really yielding the dollar signs that it’s lofty figures imply.
    Stay classy Jeff.
    FACE

  14. Its*. It’s early. (—.—)
    tiredFACE

  15. John- correct. But even if he cuts a check with his signing bonus (he still owes about 8 mil more in debt, according to reports) for 12 million, that- taxes and agent, and he only sees about $12 million of $40. It was actually benefit him to follow the plan (if this were done in a vacuum outside of endorsements, which it’s not). The point is, he’s only guaranteed 40 million (I highly doubt he plays six more years with the Eagles, I just don’t see it), AT LEAST 9.6 million of the $25 million (after taxes) goes to creditors, but he’s still on the hook for 10 mil more.
    sam- fuck off, don’t read.

  16. John- also it’s not 40% of EVERYTHING, it’s 40% up to paying back 12.5 million, which I factored in here. Using that math – not counting endorsements – he still doesn’t reach the 12.5. So he still has a ways to go (3 million) using 40% of endorsements to reach $12 millon. That means he needs to earn roughly $8 million in endorsements to bridge the gap between the 9.6 his plan will pay with his NFL salary and the 12 million he owes. He needs to get up over $10 million in endorsement dollars to start pocketing more of his contract. I don’t think he’s anywhere close to that yet.

  17. The problem is you are trying to pass this off as factual with no evidence or research whatsover. You know nothing about the contract or vicks finances.

  18. Similar to what Regis failed to explain when he was making people millionaires. Taxes, debts, blah blah blah…you’re not really going to be a millionaire.

  19. i hope he breaks his neck tomorrow

  20. Great post, Kyle.
    Regardless of what Vick owes his creditors, like most NFL contracts, this $100M deal is backloaded and Vick will never see the last couple years of it. Saying “$100M, 6 year deal” is simply a ploy for the agent to look like a great negotiator so that he can say “Look at me, look what I did for Michael Vick, I can do the same for you” when he’s trying to woo new clients. He knows full well that Vick isn’t getting $100M. Also, with a 6-year deal, the Eagles can prorate the signing bonus over 6 years so that it doesn’t all hit the salary cap this year.

  21. Sam: why are you here, exactly?

  22. Sam- the contract figures and creditor figures are fairly accurate, ya know, if you believe ESPN, the Eagles, and the courts.

  23. Always find it comical when posters, SAM, complain about the content of a blog…this isn’t CNN, if you want news, facts, un-opinionized views (which every single sight I’ve ever read has, so good luck finding it), don’t read it. It’s a blog, which means it’s going to be about whatever the creator wants it to be about, and God forbid he actually market on his site and try to make a buck (and good luck finding a site with no advertising on it, that doesn’t exist either).
    Great post Kyle, and don’t waste your time responding to assholes like Sam, spend your time putting together another post that entertains the vast majority of us, which is the exact reason why we read your blog!

  24. who cares, even with all his debt, the guy is still richer than all u f**kers. just dont get why people cant let the dog thing go. he has paid his due, MOVE ON.

  25. Still, what are the odds of getting another shot at money like this TWICE in your life?

  26. This was a great post Kyle, but I’m more entertained by these idiots leaving comments than anything else. Good shit boss

  27. @mcline88 – you are the only one who mentioned the “dogs”.
    This has nothing to do with Mike Vick as a player or a person and has everything to do with a bullshit contract headline of $100MM that is being called out as not what the player will receive. The only difference is that Mike Vick has additional, court documented, reasons as to why he won’t see close to that amount.
    It may also have a little to do with Mike Vick’s gloating future ex-wife (rich ex-wife, just not as rich as she thinks).

  28. All the numbers from these stories and ESPN are OLD. The courts haven’t produced anything stating what Vick owes anyone since he has signed his endorsement deals. NO ONE not ESPN, not Kyle Scott knows how much Vick actually owes and what he has actually paid except for his creditors and accountant. That is all I’m saying. So no one should act like they KNOW his financial situation cause YOU don’t. Go Birds.

  29. jeff- you might want to check the update…

  30. jeff- you might want to go pull the trigger…

  31. Yeah. Check that shit you mark ass trick! Vick’s 100 million is about as legit as Donovan McNabb’s 70 million from Washington was last year.
    fizace biznatchel!

  32. Even with the update there exists the possibility that Vick has, or could work out a deal to pay down these debts faster, for less since there is still no guarantee he will see any of this money.

  33. there’s a guarantee he will see about $40 million of it

  34. lol Kyle, come on. Read my last comment. His numbers are OLD. HE DOESN’T KNOW THE ENDORSEMENTS. Its in the first paragraph of his article!! LIKE I SAID- NO ONE not ESPN, not Kyle Scott (Not Darren Rovell or Vicks OLD bankruptcy lawyer.) knows how much Vick actually owes and what he has actually paid except for his creditors and accountant. That is all I’m saying. Go Birds.

  35. And who knows how much of even the $40 million Vick will see after the creditors, lawyers, et al, get their fair share. Mike would be wise and not spend it all at once.

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