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Hey Mike, where� s the money?


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http://www.ajc.com/blogs/content/shared-bl..._the_money.html

Hey Mike, where s the money?

By Mark Bradley | Thursday, July 10, 2008, 09:09 AM

The Atlanta Journal-Constitution

On Dec. 23, 2004, Michael Vick signed a 10-year contract extension that was to bring him $130 million. On July 7, 2008, Vick filed for bankruptcy, citing debts ranging from $10 million to $50 million.

I have a question: Where d it go?

Let s stipulate that Vick didn t receive all of the $130 million - he played only two of the 10 years - but the deal also included a $37 million signing bonus, most of which he has been allowed to keep. Let s also recall that Vick signed for $62 million over six seasons after being drafted in 2001. And let s not forget endorsements.

So, to recap: Two record contracts in the span of 3 1/2 years, followed by bankruptcy in 2008.

Where d it go?

I d really like to know. How do you go through that much that fast? Bad investments? (Certainly we know about the property he bought on Moonlight Road in Smithfield, Va.) Too much travel? (Didn t his deal with AirTran provide free flights?) Too many lavish purchases? (Obviously he ran up some hefty legal bils.) Too many unsavory friends? (Well, yes.) A sudden downturn in earning status? (Well, duh.)

But even with the worst spending habits and the grabbiest associates in the history of mankind, wouldn t it be tough to blow through earnings that surely topped $100 million and to do it by the time you turn 28? How do you manage that? Where d it go?

I understand that making money as an athlete is no assurance of having money. Evander Holyfield made nearly $250 million as a fighter, but last month he was moved to tell this newspaper: I m not broke. I m just not liquid. The baseball player Jack Clark once filed for bankruptcy while working under a contract that paid him $8.7 million, in part because he d bought 18 cars.

I understand that athletes aren t always the shrewdest investors. I understand that even successful people do silly things. What I can t understand is how so much money just flies away. Where does it go?

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http://www.law.com/jsp/article.jsp?id=1202422870192

According to bankruptcy fee filings, Crowell & Moring charged Vick a retainer of $280,000, and Ginsberg is billing $500 per hour -- a reduced rate from his normal $665 an hour fee. Lichtenstein's rate is $495 per hour. C&M associates Noah Bloomberg and Vivian Arias are billing at $330 and $225 an hour, respectively. (Ginsberg was traveling and unavailable for comment; Lichtenstein declined to comment.)

That doesn't sound like broke to me, you don't pay that much money in retainer fees if you broke. Good move by Vick's lawyers to protect him, its a business, its not personal.

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oregonsfan (7/13/2008)
Remember, all attorney fees must be approved by the court before they are paid from the bankrupt's estate.  In other words, the lawyers are a long way from having that cash in their bank account.

He paid a retainer to a firm - they have that cash.

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1968again (7/13/2008)
oregonsfan (7/13/2008)
Remember, all attorney fees must be approved by the court before they are paid from the bankrupt's estate.  In other words, the lawyers are a long way from having that cash in their bank account.

He paid a retainer to a firm - they have that cash.

1968, you're going to have to take my word on this...attorney fees in bankruptcy is not the same as most other matters.  All attorney fees must be approved by the bankruptcy court, including those funds designated as a "retainer."  In the highly unlikely event he actually paid that money to the attorneys (as opposed to agreed to pay it), then it is still sitting in the attorney's trust account, awaiting court approval.  If his lawyers were actually stupid enough to accept a retainer and not keep it segregated in trust, then that payment will be considered a "preference transfer" under bankruptcy law, and the attorneys will have to refund it to the estate, where it will be subject to division among all other unsecured creditors.

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oregonsfan (7/13/2008)
1968again (7/13/2008)
oregonsfan (7/13/2008)
Remember, all attorney fees must be approved by the court before they are paid from the bankrupt's estate.  In other words, the lawyers are a long way from having that cash in their bank account.

He paid a retainer to a firm - they have that cash.

1968, you're going to have to take my word on this...attorney fees in bankruptcy is not the same as most other matters.  All attorney fees must be approved by the bankruptcy court, including those funds designated as a "retainer."  In the highly unlikely event he actually paid that money to the attorneys (as opposed to agreed to pay it), then it is still sitting in the attorney's trust account, awaiting court approval.  If his lawyers were actually stupid enough to accept a retainer and not keep it segregated in trust, then that payment will be considered a "preference transfer" under bankruptcy law, and the attorneys will have to refund it to the estate, where it will be subject to division among all other unsecured creditors.

Do you really think these attorneys are hoping to be paid? You are out of ya league with these folks, they are getting paid and know what they are doing.

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oregonsfan (7/13/2008)
Geez, I should have looked at your posts/profile before I responded to any of your posts.  My bad, and it won't happen again.

Sorry to all the rest of the posters here.

You just sorry you got busted! :hehe:All you did was pull the federal statutes up and pretend like you just an expert on it. Then you pretend like one of the top law firms in the country is operating on weak possibilities. Get real. You probably just a paralegal if that. Anybody could quote the regs and change just a few adverbs to make it seem like its their own.

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