(Bloomberg News) Michael Vick's new $100 million contract will allow the Pro Bowl quarterback to pay off his creditors by 2014, Vick's financial advisor and bankruptcy trustee said.
"It's a beautiful thing," Joseph Luzinski, the trustee overseeing Vick's bankruptcy plan, said in a telephone interview. "It should put sufficient monies in the pot to substantially clean up all of the claims."
Luzinski, a court-appointed restructuring attorney with Development Specialties Inc. in Miami, said the bankruptcy payout plan implemented in 2009 was based on Vick receiving a large contract in the future.
"That was the hope of the creditors that it would work out this way," Luzinski said. "And short of there being some dramatic change -- there's no lockout, no injuries -- and no other issues, it should be a workable format to clean up his past financial commitments."
Vick agreed on a six-year contract with the Philadelphia Eagles that places him among the National Football League's highest-paid players just over two years after he left prison, where he was serving a sentence for involvement in a dogfighting ring.
$40 Million Guaranteed
The deal is worth $100 million and guarantees the 31-year-old Vick about $40 million, Ira Spiegel, Vick's financial advisor, said in a telephone interview. The Eagles didn't disclose financial terms in a statement.
"Obviously it will be a relief to be done with this and be done with the bankruptcy plan early," Spiegel said. "Michael's plan going forward is to ensure that when he is done playing he doesn't have anything to worry about."
Under the contract, Vick would make about $16 million a season. Unsecured creditors stand to receive about $5.2 million a year from that contract. Vick owed creditors about $20 million and has paid off a "couple million," Luzinski said.
"So far, it has been fairly minimal," Luzinski said.