Gasp! $100 million?! Dude got paid.
Not as much as you think, Jimmy.
• 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:
|Income||Percentage to Creditors|
|$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.