After serving 548 days in prison for his participation in an illegal dog fighting ring, former NFL quarterback Michael Vick’s future in the league and his earning potential were highly uncertain. He filed for bankruptcy in 2008 and just paid off the last of his $17.4 million debt. Vick took a path that nearly no one in a similar position would have taken.
Rather than file a Chapter 7 bankruptcy, which would have wiped his debt out, Vick decided to file Chapter 11 so that he could repay his creditors.
“I didn’t want to stiff people who never stiffed me,” Vick told ESPN in 2014.
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At the time of his filing, the former NFL standout had $17.6 million in debt. The firm who oversaw Vick’s repayment program, Development Specialists Inc., confirmed that Thursday’s $1.5 million payment was his last.
“Paying 99 cents on the dollar, which he did, is remarkable,” Senior Vice President Joseph Luzinski said. “It happens in, maybe, one out of 100 cases.”
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Upon his return to the NFL, Vick played for the Philadelphia Eagles for four seasons, he spent one with the New York Jets, and the last games of his career he played for the Pittsburgh Steelers. From 2010 – 2014, he earned over $57 million. Vick hung up his cleats in 2015 and went to work for Fox Sports as an NFL studio analyst. But he stuck to his 5-year plan and was able to make good on his promise to pay.
“Vick was able to pay back most of what he owed thanks to salaries he received from playing pro football again,” Luzinski said. “Individual bankruptcies rarely generate a significant return to creditors as many only return only cents on the dollar… It is not unusual for recoveries in a Chapter 11 bankruptcy to be five to 15 cents on the dollar. The recovery of 99 percent is absolutely an exception to this norm.”
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The only debt that Vick could not fully satisfy was the $6.5 million in salary that he owed the Atlanta Falcons. Rather than wait to see if Vick would return to league and earn the kind of money it would take to repay them, the franchise sold the debt to Fortress Capital. The Falcons have no hard feelings and even held a retirement ceremony for Vick this year. But they are probably kicking themselves right now. Michael Vick was a good business to be in while it lasted.
