Evander Kane contract termination/ bankruptcy omnithread

[LadyStanley]

Sharks' Evander Kane files for bankruptcy with $26.8 million of debt

Paywall. Claims 7 dependents. Assets are houses, essentially.

Sharks sued by largest claimant saying they didn't direct deposit to account per payoff agreement.

Click to read more...

 

[KevFu]

How does someone do that? Was his agent Bernie Madoff?

 

[supsens]

He might quit for health concerns so the sharks don’t have to pay his debt?
What a disaster

 

[gstommylee]

For a person making that kind of money. How in the world can someone be 28m in debt?

 

[Ernie]

For a person making that kind of money. How in the world can someone be 28m in debt?

The petition also listed seven dependents, all as living with him: his 6-month-old daughter, his sister, 27, his uncle, 54, his mother, 55, another uncle, 59, his father, 60, and his grandmother, 77.

That's roughly $4m per adult. Throw in a gambling problem and we're away to the races.

 

[cheswick]

For a person making that kind of money. How in the world can someone be 28m in debt?

You’d have to make that kind of money to be able to get into $28m debt. No one is lending me $28m.

 

[Llama19]

Article details not behind a paywall...

Report: Sharks' Evander Kane, $27 million in debt, declares bankruptcy

sports.yahoo.com/report-sharks-evander-kane-27-020646798.html

 

[Grumpy Olfart]

Wonder who or what he'll blame? Unlikely he'll say it was his fault.

 

[LeHab]

Mandatory:

 

[Acesolid]

WHAT?!!

That's nuts. I do wonder if he'll still play...

 

[joe dirte]

so, 28 mil in debt, 11 mil in assets. That's net 17m in the hole. $32M left on his contracts.... of that, I'm not sure how much he gets, but it's likely closer to $20M after escrow, agent fees, taxes. He basically has to hand over his pay check for the remainder of his contract, and earn himself another at the age of 33, if he wants to walk away from hockey with anything to show for it.

 

[cutchemist42]

Get that guy a personal finance class. (Sadly this is not uncommon no matter your income bracket)

 

[ottawah]

so, 28 mil in debt, 11 mil in assets. That's net 17m in the hole. $32M left on his contracts.... of that, I'm not sure how much he gets, but it's likely closer to $20M after escrow, agent fees, taxes. He basically has to hand over his pay check for the remainder of his contract, and earn himself another at the age of 33, if he wants to walk away from hockey with anything to show for it.

It will be well less than 20M. Assume his signing bonus has been paid, he;s got 29M left. Likely 28M after shortened season taken into account. 20% escrow and 5% agent feels leaves 21M. After tax thats probably about 11M given Californias tax structure.

and he will be 34 at the next stage of his contract.

So quite simply he cannot pay his way out, hence bankruptcy. I expect it is to pay pennies on the dollar and be able to retain something of his current contract. It will be interesting though as he guaranteed a chunk of this on his contract. As the Sharks were also involved, there may be repercussions if they tried to terminate his contract. Making for a very odd situation.

 

[Byrddog]

Get that guy a personal finance class. (Sadly this is not uncommon no matter your income bracket)

So true, it has been going on for many many years. Babe Ruth in the end even when dying from cancer had to sell autographs to pay for his existence. Nothing has changed over time young people spend young people with access to massive amounts of money spend more. Some spend themselves into poverty.
Athletes who went bankrupt | FOX Sports
Even the great Bobby Orr was not exempt. That article points out just a few, the inability of people to control themselves has only gotten worse over the years as massive salaries are just burned up. Many many due to illegal drugs. And this is not a sports focused issue. Look at Hollyweird people.
Celebrities who declared bankruptcy | Finance 101

We can sit back and say theres no way we would do that but the fact is we are ALL susceptible to excess. The damning thing as fans we will just blindly see these people as role models and we are willing to pay any amount to watch them. All the while we are watching many self destruct.

Now im an old fart and remember Ali, Frazier, Forman the biggest pay rolls in the era more than baseball football golf any sport these three made many millions of dollars yet two of them had little in the end Frazier died with about 100k net worth, Foreman went bankrupt and has used many gimmicks to even getting back in the ring at 48 to get embarrassed, selling grills to sketchy home repair and car repair insurance. Ali was an exception he had a net worth of 80 mil when he died. These were my heros as a kid anybody who fought Ali well except Spinks was high on my list. Spinks has a net worth of 400k today after earning 13.4 million for just one fight he made 60 to 70 mil being in the ring. Look at Tyson in 2004 he was 38 mil in debt when he filed bankruptcy.

So Kanes situation is not suprising. I read yesterday that he was opting out of the season as well and that the team was looking at options to cancel his contract. Talk about adding insult to injury!!!!!!!! Now think about this a person who has lack of self control in one area of there life usually has other areas that are uncontrolled as well. Kanes career has shown this behavior he has moved from team to team never really excelling to his full potential. Now all three teams he has played for have there own level of regrets of having him. He is 29 now and if his contract is terminated he will not get another fat contract and will live the rest of his life hand to mouth. Bankrupcy does not relieve all debt and you can expect he will be repaying until he dies.

 

[LadyStanley]

so, 28 mil in debt, 11 mil in assets. That's net 17m in the hole. $32M left on his contracts.... of that, I'm not sure how much he gets, but it's likely closer to $20M after escrow, agent fees, taxes. He basically has to hand over his pay check for the remainder of his contract, and earn himself another at the age of 33, if he wants to walk away from hockey with anything to show for it.

$7m/year. Probably $300-400k per $1m earned. So, maybe "takes home" $2.8m. He should be able to live on $800k, so $2m could be earmarked to repay debt. (And/or needs to kick out parents, aunt, uncle and sister to earn their own way? )

 

[jetsv2]

How does someone do that? Was his agent Bernie Madoff?

One of the creditors that he owes money to is actually his former agency, Newport Sports. He wasn't even paying his agent.

 

[KevFu]

I mean, boxing I get, because the agents and promoters in boxing are extremely predatory. (Much like the music industry. NWA broke up because Dre, Ren and Cube were eating McDonalds and their manager and Easy-E were having lobster). The older players, yeah, there's horrible stories of the old greats having issues. The progress made in the 70s to 90s for the sports players union is massive.

But to basically get $22 million and spend $51 million in this era is just bananas. No one showed him the ESPN 30 for 30 called BROKE that came out in 2012?

 

[DudeWhereIsMakar]

I just hope when he returns to Winnipeg next time there's an amazing chant.

 

[tarheelhockey]

Get that guy a personal finance class. (Sadly this is not uncommon no matter your income bracket)

In some cases, young athletes need something more aggressive than that. Something closer to a life coach, with power of attorney to save them from being young and dumb and easily manipulated.

 

[LadyStanley]

FWIW, coach has been assured Kane will play entire season.

 

[mouser]

Mind boggling. Curious to know the full details of what all those loans were spent on.

 

[cutchemist42]

In some cases, young athletes need something more aggressive than that. Something closer to a life coach, with power of attorney to save them from being young and dumb and easily manipulated.

Yeah true. It takes some self reflection though to realize one is needed. Many people dont get that self reflection until later in life.

I would guess society as a whole,, the percentage of people in their 20s who understand finances well is much lower than we think. Unless you actively seek it out, have parents who know these things, or a university class, it's usually not well known.

I know my high school didnt offer finance classes. I sought it out myself only because of self interest and seeing what money problems did to other family members.

 

[tarheelhockey]

Yeah true. It takes some self reflection though to realize one is needed. Many people dont get that self reflection until later in life.

I would guess society as a whole,, the percentage of people in their 20s who understand finances well is much lower than we think. Unless you actively seek it out, have parents who know these things, or a university class, it's usually not well known.

I know my high school didnt offer finance classes. I sought it out myself only because of self interest and seeing what money problems did to other family members.

It comes down to the fact that the vast majority of people are immediately descended from people who didn’t have any wealth whatsoever. They’re equipped with cultural norms around food, religion, language, etc. But there’s no inherited culture around managing money on any sort of complex level.

Kane grew up sharing a room with 2 siblings. With all the wealth in the world, he ended up responsible for half a dozen adults. It says a lot.

 

[Rob]

Speaking of gambling issues would he be in trouble with the NHL if it was found out that he bet on his own team?

 

[93LEAFS]

Speaking of gambling issues would he be in trouble with the NHL if it was found out that he bet on his own team?

He would be banned and his contract voided. That's an absolute no-no in all professional sports leagues.