Evander Kane File For Bankruptcy

Discussion in 'Hockey' started by Claimjumper, Jan 11, 2021 at 11:14 PM.

  1. Claimjumper

    Claimjumper Mentor

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    $27 million in debt at age 29! One of the most arrogant overrated players in the league! Even NFL and NBA players have the wherewithal to make it through their careers without sinking to bankruptcy.

    https://sports.yahoo.com/report-sharks-evander-kane-27-020646798.html
     
  2. Bucky

    Bucky Master

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    27 mil in debt. Special kind of stupid.
     
  3. white is right

    white is right Hall of Famer

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    I don't even think if every adult that he supported got a job it would make the minimum payments on his debt.

    He's supposedly a cousin of failed heavyweight contender Kirk Johnson, if I didn't know any better I would think he was a punchy ex boxer...
     
  4. Phall

    Phall Mentor

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    Fascinating account, and of course not particularly uncommon for (black) athletes and celebrities. Not being a hockey fan, I wasn't familiar with Evander Kane and understood that the NHL only has a handful of black players at any time, who are naturally over-promoted and overhyped.

    From what I can gather from the Yahoo article and its linked local news stories, this guy took out a "payday loan" with Centennial Bank against his 7-year contract to get $4 million cash up front, which turned into about $9 million in "liabilities" (interest and unpaid fees) when he stopped making his monthly payments. I am just guessing that the NHL collective bargaining agreement sets a structure for things like salary dispersement schedules, and this "business investment advance" was an easy way to subvert those rules.

    Bear in mind that the bank is not a victim here in black and white terms (heh). Their underwriting team made a calculated decision to extend the money, and their exorbitant interest rates and fees reflect the likelihood of default.

    Other points of interest: one of Kane's "assets" is a $1.8 million valuation of a "counter-judgment" against a white woman who previously sued him for raping her in a hotel room in 2016. Without rolling up my sleeves on that story, I'll make the guess that this is imaginary money that won't ever exist. The seven dependents co-habitating with Kane are a novelty, but are likely presented more for sympathy than an elaboration on any legal obligations. While Centennial Bank was the first lender to 'call in' their debts, we can be sure that countless other places (jewelry stores, auto dealerships, mortgage lenders) extended the same type of fast-gratification-now style of financing. The $1.5 million in gambling debts is incredible... this was half of his previous year's salary before taxes!

    The threat of Kane sitting out the season is a clever bit of legal maneuvering. He can withdraw for covid concerns and put his arrangements with the NHL on hold through the league's new accommodations. This works great for debt negotiation, as his newly current salary of zero gets projected outward on the actuarial calendar. In the end, some of his debtors will be fighting for slices of pie that do not include his 2022 salary and beyond - a clever ploy to secure more favorable concessions. I still imagine he's a long way away from being rich again.

    ---

    The NIL rights (name and image licensing) for college athletes is the new reform coming down the pipeline. This will allow players to sign autographs, do commercials, promote products on social media, etc, profiting on their popularity without drawing a salary for their sport. It seems inevitable at this point, especially with the woke directive to pay poor young blacks instead of rich old whites (the coaches, school admins, broadcast execs, etc). The fallout from this monumental change will be tremendous.

    Take cheerleaders for instance: they are not classified as varsity athletes, so they are not bound by collegiate amateurism. The girls get sent free makeup, and they post about how much they love the brand on their instagram pages, even getting a few hundred bucks from the company for their endorsement. The school isn't involved, the cheerleaders are rewarded for their popularity, their participation and competitions proceed as normal. No big deal.

    Now imagine that scenario for football and basketball. Dial the age range back to at least 15, since that's about when professional scouting services kick in. There's no solid estimate of how much money is currently paid to kids under the table. Instead of those dubious loaner cars from the booster's dealership, those can be legally secured with a room-brightening smile posted on a tweet. Maybe even a few hundred thousand dollars for the trouble. Realistically, how long until the first offer of a lump sum pledged against future payments is made?

    Evander Kane's anecdote spells out the trajectory clearly. There will be banks, but also agencies (sports agents, talent agents, financial managers, etc) and loan sharks (jewellers, payday loans, gambling books, etc) coming out of the woodwork to "help" these kids out. If the professional leagues with all their mandatory financial literacy classes, union-approved contract regulations, and certified money managers can't prevent the Kanes, Latrell Sprewells, and Terrell Owenses of the world, we know what is certain to happen when the floodgates open.

    Something else to be certain of: it will all be whitey's fault!
     
  5. Tannehill17

    Tannehill17 Mentor

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    Who was his agent? Bernie Madoff? Speaking of gambling issues would he be in trouble with the NHL if it was found out that he bet on his own team? I would have to think he would be banned and his contract voided. That's an absolute no-no in all professional sports leagues.
     

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