VICK'S JUDGE DECISON ON THURSDAY

By Peter Dujardin Special to The Morning Call

August 28, 2009

• E-mail
• Print
• Share
• Text size

Michael Vick's plan to repay more than $20 million he owes to creditors was approved Thursday, just before the quarterback hopped on a plane to Philadelphia to play in his first NFL game since 2006.

U.S. Bankruptcy Judge Frank Santoro, who rejected a plan brought several months ago by Vick's attorneys, endorsed a new proposal that was smoothed over by Vick's return to football.

''Mr. Vick went from the height of wealth and celebrity to imprisonment, and back againÂ…and he is to be commended for that,'' Santoro said.

After the hearing, Vick signed an autograph, heard a man yelling ''Welcome back, Mike,'' and jumped into a waiting sport utility vehicle. Then he caught a flight from Newport News to Philadelphia to play in a preseason game against the Jacksonville Jaguars.

''It's an awesome feeling,'' Vick said of getting the bankruptcy case approved. ''I'm looking forward to getting on with my life and taking care of my obligations and responsibilities.''

He was happy to be playing in Thursday's football game, saying: ''It's been a long time coming. I'm looking forward to going out there and having some fun.Â…Hopefully we'll get to see some of the highlights on [ ESPN's] 'SportsCenter.'''

Vick's salary with the Eagles is $1.62 million for 2009, with the Eagles having an option to renew in 2010 for $5.2 million. The 2010 contract also includes incentives that could boost Vick's income that year by another $2.8 million, to $8 million.

During the hearing, Vick testified that he expected to make a minimum of $5 million annually during the next several years.

Under the plan, Vick will pay creditors on a sliding scale based on his future income. He gets to keep everything below $750,000, and will pay 25 percent of any income between $750,001 and $2.5 million. He'll pay 30 percent of his income between $2.5 million and $10 million, and 40 percent of anything above $10 million.

Vick will be able to keep his home in Hampton, Va., a truck, two retirement accounts and personal effects. Most everything else will be liquidated. That includes four other homes -- one outside Atlanta and three in Virginia. It also includes several other cars and boats.

During the hearing, Vick promised to live within a $300,000 annual budget, with his accountant saying he would ensure that most everything above that be invested in secure investments, such as CDs.

Santoro imposed on Vick the requirement, at least in the early years of the plan, that will essentially force him to live within that limit.

Vick owes more than $20 million to about 100 creditors, which he will pay off with future income. The more he makes, the more he'll pay.

The biggest creditors include the Atlanta Falcons, whom Vick owes about $7.5 million for a past dispute over his bonus. He owes about $6 million to his first NFL sports agent, Andrew Joel -- whose judgment against the quarterback triggered the bankruptcy case in the first place.

Vick also owes $2.5 million to the Royal Bank of Canada for a defaulted loan that Vick took out for business investments in the Atlanta area. Vick also owes about $3.6 million in fees to pay off attorneys and other professionals who represented both him and a creditors committee during the bankruptcy.

Vick's financial woes came in the aftermath of his conviction in 2007 for operating a dogfighting ring in Virginia. Vick, once the highest-paid player in the NFL, served 18 months in prison.

Peter Dujardin is a reporter for the Daily Press, a Tribune Publishing