Evander Kane contract termination/ bankruptcy omnithread

[adsfan]

former NBA player Vin Baker ran into money issues post career

I remember him going to Boston. That was about the time I completely stopped watching the NBA, maybe 2003? When Vin played for the Bucks, I used to watch on TV once in a while.

I think that I went to one Bucks game after Sidney Moncrief retired in 1989. I got free upper deck tickets for a blood donation in 2009. The Bucks played the 76ers and didn't defend the three point shot in the beginning of the second half. Instead of being a 6 or 7 point game, it was 100-66 at the end of the third quarter. I told my wife that I was getting the car and to meet me at the back door in 5 or 10 minutes, and it would be another 20 years before I came back. I went out the west side atrium after riding the escalator down and walked toward the exit doors. I turned around and there were about 7000 people lined up behind me. It looked like I was leading a parade!

I don't like the new Bucks owners and will never go to another game as long as the 3 of them own the team. One of their wives supports the Milwaukee Film Festival, which is something good for the town. I am sure that the Deer District also helps out a few other businesses that they don't own. I am through with the NBA forever. I am reminded at every Admirals game when I see the vacant lot across the street that was the Bradley Center, built with $91M from the Admirals former owners. That is what 3 billionaires brought to Milwaukee, an empty lot in downtown!

I follow college basketball, particularly Dayton, who would have been a #1 seed last year, Cincinnati, a two time NCAA champion and the Wisconsin Badgers who won the NCAA title in 1941.

 

[Rob]

I guess the only "good thing" is that this is happening very early in his career. There is still plenty of time to pay all his debts off.

 

[jetsv2]

I guess the only "good thing" is that this is happening very early in his career. There is still plenty of time to pay all his debts off.

He isn't very early in his career though. He is 29 years old and a lot of players that play his style of game have their bodies begin to break down in their early 30s. There is no guarantee he gets another big contract in his career.

 

[LadyStanley]

https://www.cbc.ca/news/canada/brit...earn-from-evander-kane-s-bankruptcy-1.5879579

$1.5m in gambling/sports betting losses in the last year among the issues per declaration.

And he'd hardly be an isolated case, says Declan Hill, University of New Haven professor of investigations specializing in sports, gambling and organized crime.

"This is the tip of an iceberg," said Hill. "There is a silent epidemic of gambling-related addiction issues among professional athletes."

Agents and NHLPA (and to a lesser extent the teams) need to do more to protect players from themselves WRT gambling and sports betting.

 

[StreetHawk]

He isn't very early in his career though. He is 29 years old and a lot of players that play his style of game have their bodies begin to break down in their early 30s. There is no guarantee he gets another big contract in his career.

His contract expires when he turns 34. He is more likely to end up like Corey Perry type contracts. Perry was 34 when the ducks bought him out and he joined Dallas last season.

 

[jetsv2]

His contract expires when he turns 34. He is more likely to end up like Corey Perry type contracts. Perry was 34 when the ducks bought him out and he joined Dallas last season.

Corey Perry is making 750k this year, and is not far from being out of the league at this point. Kane is not going to get much in the way of career earnings after his current contract expires.

 

[LadyStanley]

Evander Kane, Sharks notify bankruptcy court that they might void his contract

Paywall.

Sharks were due to make decision this week on whether or not to end Kane's contract. They have filed to push that date to June.

The point of the federal bankruptcy process is to reasonably protect the debtor from creditors, and that can entail invalidating contracts. League and union policies essentially end once a bankruptcy process has begun, so whatever concerns the NHL and players’ association might have, were Kane and the Sharks to follow through on ending his contract, there may be little they can do.

The deadline for moving to reject his Sharks contract had been this week, but a bankruptcy judge agreed to the request from Kane and the Sharks to extend it by 90 days, to June 7. In agreeing to extend the deadline, the judge, Stephen Johnson, wrote, “This order is not a determination that the Contract is a … contract governed by Bankruptcy Code Section 365, nor that an assumption of the Contract is required under the Bankruptcy Code for Kane and SJS to continue to comply with the Contract.”

Hearing on request to change to Chapter 11 bankruptcy (from Chapter 7) scheduled this month.

So very convoluted.

 

[LadyStanley]

 

[razorsedge]

What grounds would they have to void it?

 

[gstommylee]

What grounds would they have to void it?

I have no idea. But if kane terminates his contract both the creditors and the courts probably won't be happy with him.

 

[mouser]

What grounds would they have to void it?

I think it's less about "grounds" and more the technical legalities. Bankruptcy courts can void employment contracts. The judge is probably waiting to hear whether Kane or San Jose will seek to have the bankruptcy court terminate the contract. It should be noted: per the article the judge has not made any ruling yet whether the contract should be subject to the bankruptcy process in the first place.

 

[supsens]

So the Sharks have entered into a scam where the bank is being ripped off for millions?
Lol thats a bad look.

 

[LeHab]

What grounds would they have to void it?

If contract is to be clawed back by creditors Kane could simply sit on the sideline and get suspended without pay. Why work for free or close to? In that case Kane may never play again with the team. Sharks would have thus an incentive to get right of the problem by mutually voiding it.

Not sure if Kane would be allowed to sign another NHL contract anytime soon as that possibly sets a bad precedent. KHL/Europe on the other hand, why not.

I still believe there will be some sort of settlement between Kane and creditors.

 

[sh724]

So the Sharks have entered into a scam where the bank is being ripped off for millions?
Lol thats a bad look.

The sharks have not entered into anything other than an employment contract with Evander Kane. Kane filing bankruptcy does not effect the reputation of the Sharks, he is only an employee. It is no different than an employee of any other business filing bankruptcy

 

[TheMoreYouKnow]

I think it's a combination of ignorance and arrogance. I don't believe everyone is equally susceptible to this type of issue, and I'm not willing to absolve athletes or other wealthy people from blame when it all goes wrong like in this case.

 

[supsens]

The sharks have not entered into anything other than an employment contract with Evander Kane. Kane filing bankruptcy does not effect the reputation of the Sharks, he is only an employee. It is no different than an employee of any other business filing bankruptcy

Ummm they signed off on paying the bank back directly and stoped making payments and now they might terminate the contract to make sure he can weasel out of paying them back.
I am not sure how you don’t see that as dirty or bad business, it stinks and it’s a black eye don’t kid yourself

 

[Not4u]

Ummm they signed off on paying the bank back directly and stoped making payments and now they might terminate the contract to make sure he can weasel out of paying them back.
I am not sure how you don’t see that as dirty or bad business, it stinks and it’s a black eye don’t kid yourself

No the Sharks did not! The only thing the Sharks agreed to do is send money where Kane tells them to send it. Kanes loan was shopped heavily. Countless Funds and hard money lenders saw his balance sheet...

I personally had his balance sheet and player contract, the second the Sharks wouldn't be a party to the loan and/or said the client could stop the payments at his discretion. We were out!

 

[supsens]

No the Sharks did not! The only thing the Sharks agreed to do is send money where Kane tells them to send it. Kanes loan was shopped heavily. Countless Funds and hard money lenders saw his balance sheet...

I personally had his balance sheet and player contract, the second the Sharks wouldn't be a party to the loan and/or said the client could stop the payments at his discretion. We were out!

Everyone would be out and unless you were there to see the deal that convinced them to lend him the money you can’t say either way what happened .
And if the sharks refused to be a party to the loan they probably would not be being sued.
I mean it could go either way but you would think they are smart enough not to sue someone that has nothing to do with it

 

[Not4u]

Everyone would be out and unless you were there to see the deal that convinced them to lend him the money you can’t say either way what happened .
And if the sharks refused to be a party to the loan they probably would not be being sued.
I mean it could go either way but you would think they are smart enough not to sue someone that has nothing to do with it

No...I think the lenders are desperate and are suing where the money is. You can sue people in this country over a ham sandwich.

I also think that there is more to this story. There were so many shady people working with Kane. Broke retired NBA players, disgraced former agents. I know for a fact his biggest concerns was casinos, not banks and his biggest problem was the Sharks wouldn't guarantee the loan.

 

[LeHab]

I know for a fact his biggest concerns was casinos, not banks and his biggest problem was the Sharks wouldn't guarantee the loan.

Would he really believe team would co-sign on such a loan? Should try Loan Sharks not SJ Sharks.

Would probably be considered cap circumvention anyway if the team was foolish enough.

 

[mouser]

Would he really believe team would co-sign on such a loan? Should try Loan Sharks not SJ Sharks.

Would probably be considered cap circumvention anyway if the team was foolish enough.

Yeah, I can’t imagine a team co-signing on a loan to a player would be allowed under any CBA in the salary cap era (2005, 2013, 2020). I do wonder if a co-sign could would have been allowed pre-2005 with all the personal service contracts and other machinations.

 

[sh724]

Ummm they signed off on paying the bank back directly and stoped making payments and now they might terminate the contract to make sure he can weasel out of paying them back.
I am not sure how you don’t see that as dirty or bad business, it stinks and it’s a black eye don’t kid yourself

Kane told his employer to send a portion of his direct deposit to a different account number, so the sharks did. Kane then told his employer to stop sending a portion of his contract to a different account number, so they stopped. Anyone who has direct deposit can send a portion of their paycheck to a separate account.

The sharks have no bearing on whether Kane fulfills his debt obligation just like your employer has no bearing on whether you fulfill your obligations. The sharks could not legally send Kane's paycheck to an account without Kane's permission.

The sharks would not terminate the contract solely for the benefit of Kane, when in reality it wouldnt benefit Kane in anyway shape or form.

 

[supsens]

Kane told his employer to send a portion of his direct deposit to a different account number, so the sharks did. Kane then told his employer to stop sending a portion of his contract to a different account number, so they stopped. Anyone who has direct deposit can send a portion of their paycheck to a separate account.

The sharks have no bearing on whether Kane fulfills his debt obligation just like your employer has no bearing on whether you fulfill your obligations. The sharks could not legally send Kane's paycheck to an account without Kane's permission.

The sharks would not terminate the contract solely for the benefit of Kane, when in reality it wouldnt benefit Kane in anyway shape or form.

Yes, if he can get away with no debt and is free to sign a contract somewhere else that is huge for him.
As long as he has that contract he is responsible to pay that debt

 

[sh724]

Yes, if he can get away with no debt and is free to sign a contract somewhere else that is huge for him.
As long as he has that contract he is responsible to pay that debt

He is responsible to pay the debt regardless if he has a job or not (obviously bankruptcy laws take precedent at this point). The contract secured the debt and was the collateral for the loan. The collateral going away doesnt make the debt disappear. That would be equivalent of taking out a mortgage then selling the house and saying you dont have to pay back the mortgage because you no longer own the house.

The point of the bankruptcy court is to reach settlements with the creditors not to absolve all of the debt. The judge would be well within his/her legal scope to require a portion of Kane's future earnings to go towards repaying the debt. The judge could order X% of all future earnings go to repaying his debt until all the debt is repaid. Its possible he will be making payments well after his NHL days are done. He could end up having a garnishment on his NHLPA pension.

 

[supsens]

He is responsible to pay the debt regardless if he has a job or not. The contract secured the debt and was the collateral for the loan. The collateral going away doesnt make the debt disappear. That would be equivalent of taking out a mortgage then selling the house and saying you dont have to pay back the mortgage because you no longer own the house.

The point of the bankruptcy court is to reach settlements with the creditors not to absolve all of the debt. The judge would be well within his/her legal scope to require a portion of Kane's future earnings to go towards repaying the debt. The judge could order X% of all future earnings go to repaying his debt until all the debt is repaid. Its possible he will be making payments well after his NHL days are done. He could end up having a garnishment on his NHLPA pension.

Ya no collateral no income how much money do you think they would be awarded compared to say him having a large NHL contract?
Plus he filed for chapter 7 all property and anything he owns will be liquidated and he will walk out the other side debt free. At least I thought that’s how it works in America
Well all debts other than one that is secured by something like his paycheck...