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Evander Kane files for Bankruptcy

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1 hour ago, DonaldBrashear said:

He doesn't want to play this year because he would have to pay most of his salary to the bankrupt trustee. But if he makes no salary for a year he can probably be discharged and then go back to playing hockey. Sucks if you are one of his creditors.

??????????

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51 minutes ago, Monty said:

They are paid accordingly to how much they bring in, compared to the other major sports in North America. They are paid less, because the sport doesn't bring in as much as the other NA sports.

still hilarious that average nba players make 15 million plus

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1 hour ago, DonaldBrashear said:

He doesn't want to play this year because he would have to pay most of his salary to the bankrupt trustee. But if he makes no salary for a year he can probably be discharged and then go back to playing hockey. Sucks if you are one of his creditors.

He has 5 years and probably $35 million left on his deal.

 

He has enough income to settle his debts. He just doesn't want to.

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5 hours ago, Phil_314 said:

Yikes... not to mention how state and Federal tax in California amounts to around 50% of his gross salary... so each year he brings home around $3.4 million... then he's got this albatross in his personal life to deal with...

Add in there the 5% his agent makes each year and that number adds up.
 

But, his Chapter 7 case may get thrown out and he will be forced into a Chapter 11.  Why? He makes too much money to qualify for a Chapter 7 and family members that he cares are not legal dependents.  
https://upsolve.org/ca/means-test/ 

Edited by The Colt 45s
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5 hours ago, Shekky said:

wow I've always said if there is one thing that needs to be taught in high school is finance course just to give kids an idea of how to save money and invest.

I think what will be taught in high school is pretty insufficient to prepare the real world. 

 

NHL prospects get drafted at 18 so that is very young. And to have so much money at a young age probably will lead into some poor financial management decisions. So the question is does the NHL or the NHLPA provide any courses involving Financial management for the players? 

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1 minute ago, iinatcc said:

I think what will be taught in high school is pretty insufficient to prepare the real world. 

 

NHL prospects get drafted at 18 so that is very young. And to have so much money at a young age probably will lead into some poor financial management decisions. So the question is does the NHL or the NHLPA provide any courses involving Financial management for the players? 

Short answer is yes.  Each team has a supply of professionals available that help players manage money.

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1 hour ago, Lancaster said:

Sometimes agents should start getting into the financial management business too.  Not just getting their clients the best contract possible, but tie it up that if you want to be a client of his firm, you must have portions of your earnings to be delegate to a certified financial planner, etc.  

Brian Burke was doing this when he was an agent according to his book.

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1 hour ago, nuckin_futz said:

He has 5 years and probably $35 million left on his deal.

 

He has enough income to settle his debts. He just doesn't want to.

From what i see on capfrindly, he has 29 million left on his contract. Take away taxes, agents fees,escrow, living costs and apparent legal liabilities and he is still way behind with no guarantee of any meaningful contract after this one is fulfilled.

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7 hours ago, Shekky said:

wow I've always said if there is one thing that needs to be taught in high school is finance course just to give kids an idea of how to save money and invest.

It's almost as if trigonometry and algebra are more useful to 99% of kids than basic financial responsibility. Education needs to focus on preparing kids for adult life, not sticking to topics less than 1% of kids learning will actually use.

 

In Kane's case, the numbers are staggering. $52m in career earnings, which he's converted into $10m of assets. With $27m of debt, that means he's spaffed $69m up the wall.

 

How the hell does anyone plough through $69m in ten years? I just cannot fathom how someone can do that.

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7 hours ago, Shekky said:

wow I've always said if there is one thing that needs to be taught in high school is finance course just to give kids an idea of how to save money and invest.

Athletes need to learn to not spend their earnings. Buy businesses, investments and spend the earnings out of THOSE, not salary.

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1 hour ago, Hamhuis Hip Check said:

From what i see on capfrindly, he has 29 million left on his contract. Take away taxes, agents fees,escrow, living costs and apparent legal liabilities and he is still way behind with no guarantee of any meaningful contract after this one is fulfilled.

Yeah but his creditors would gladly take 30 or 50 cents on the dollar as opposed to zero.

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1 hour ago, Hamhuis Hip Check said:

From what i see on capfrindly, he has 29 million left on his contract. Take away taxes, agents fees,escrow, living costs and apparent legal liabilities and he is still way behind with no guarantee of any meaningful contract after this one is fulfilled.

He will be 34 by the time the contract is up. So my guess is that he's going to get one more contract after that. Like a 2 year deal. 

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Genuinely curious why he wants to terminate his contract if he's in debt. Is he hoping he can get more money on a shorter term deals? Cause that's not gonna happen. Look at what Hoffman and Hall got. Lol. I doubt he'll get anywhere near the 29mil his current contract guarantees him. Do some JC Penny commericals or something. I am sure someone somewhere would use you to sell their flip flops or hats.

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1 hour ago, Azzy said:

It's almost as if trigonometry and algebra are more useful to 99% of kids than basic financial responsibility. Education needs to focus on preparing kids for adult life, not sticking to topics less than 1% of kids learning will actually use.

 

In Kane's case, the numbers are staggering. $52m in career earnings, which he's converted into $10m of assets. With $27m of debt, that means he's spaffed $69m up the wall.

 

How the hell does anyone plough through $69m in ten years? I just cannot fathom how someone can do that.

I am assuming the more you earn/are worth the cost goes up dramatically. 

 

I have wondered how much Jeff Bezos monthly bills must be... 

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9 hours ago, Chronic.Canucks.Fan said:

may opt out of the season “because of health concerns given the recent birth of his first child.” If Kane chooses this route, he would not be paid for this season.

Disclaimer; What I am about to suggest would not be valid if he has a sick or high risk (of Covid) child, an ailing partner coming out of childbirth not well.  And the family needs him?

 

It kinda looks like if they are just going to take his pay check.  Give him cost of living expenses. Which is what they do in bankruptcy?

  

 He feels like saying sulk it, you get nothing..,.

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5 hours ago, Squamfan said:

??????????

I’m no expert (so take this with a grain of salt), but I have to review bankruptcies occasionally for work.  They aren’t always cut-and-dry. Sometimes the person presents alternative proposals to liquidating everything and giving all their discretionary income for a limited period of time. In Canada they are called “Consumer Proposals”, but not sure of the details in the USA.

 

The creditors here are probably considering a similar proposal from Kane. They might play hardball and ask to liquidate everything and/or take a considerable amount of his net income, and/or extend the proposal period multiple years (I have seen some proposals go 5 years). Kane is likely putting it out there that if their demands are too onerous, he’s willing to screw them completely over and throw away his guaranteed income.
 

This isn’t a bad strategy either, since if his proposals aren’t accepted, it would likely go to a standard bankruptcy. He’d lose pretty much all his assets, and all his discretionary income for a set number of months (as low as 9 months in Canada - so possibly just 1 season), but after that he’d be completely free-and clear. And he’s young and effective enough to still make decent money going forward, none of which could be taken by former creditors.

 

My guess is, Kane is trying to save his house, keep enough of his income for the next few years for his family to still live well, and keep the last few years of his contract out of the deal so that he’ll still have a nest egg for his family. If the creditors don’t like that, and are threatening to take more (for longer) or go full insolvency, he’s threatening to pull a grenade pin on them. Sucks for his creditors, but it is probably his right. Even if that could be challenged under normal circumstances, the prevalence of COVID and his family circumstances make it a conveniently placed grenade for him.

 

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9 hours ago, Canuckster86 said:

I got little financial knowledge....but what I do know is, you DONT spend more than you make!!! Should be pretty simple knowledge even he should know

Depends on the situation and how you use it. If you know what you are doing leveraging debt can actually give you better returns than saving and spending in your means. You need to know how to weigh up your opportunity costs and be sure on the security of your cashflow. 
 

Leveraging debt without a plan or an understanding though is a recipe for disaster 

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1 hour ago, drummer4now said:

I am assuming the more you earn/are worth the cost goes up dramatically. 

 

I have wondered how much Jeff Bezos monthly bills must be... 

Pretty much this. The hidden costs of maintaining physical assets is often not fully appreciated. 
 

a good example of this would be to go watch airplane repo 

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