Ironically, even though Michael Vick is having enormous success on the field and has been paid $4.1 Million dollars by the Philadelphia Eagles, he is still heavily in debt and has been placed on a strict budget by his Court Appointed trustee.
The more money he makes, the more money goes to creditors. A salary under $2.5 million would force Vick to pay 25 percent of his income towards his debt. That percentage jumps to 40 if Vick signs a deal worth $10 million or more per season. As it stands now, Michael will be finished paying off his creditors by 2015 should he continue to receive a multi-million dollar salary.
Here’s a breakdown of how his money is being spent by ESPN’s Legal Analyst Lester Munson:
• Two-thirds of every dollar Vick earns goes to creditors and taxes.
• 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 pre-prison days, can receive $2,500 per month.
• Other obligations Vick owes include mortgages, child support($3,000 per month), 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.
He is also obligated to pay $3,712 per month on the mortgage for the only remaining residence he owns in Hampton, Va.
Munson also writes that before Vick filed for bankruptcy, he frantically gave away $5 million to family and friends so that creditors couldn’t get to it. The court-appointed trustee is trying to recover that money, which was given to Vick’s friends, family and the mothers of Vick’s children. This is being done via a lawsuit, meaning that the man in charge of Michael Vick’s money is also suing Michael Vick’s family.
It’s been well documented that many athletes go broke within 2 years of retirement. Looking over the breakdown of Michael Vick’s court appointed budget helps to understand why that may happen. Recall that prior to Michael going to prison, he was the NFL’s highest paid athlete. EVERYONE should be cost conscious. Even Multi millionaire athletes.