New troubles for Vick...

[HaRuMaN]

Seems like the Royal Bank of Canada is suing him for over 2 million...

http://sports.yahoo.com/nfl/news?slug=ap-vicklawsuit&prov=ap&type=lgns

Not to mention that the state of Virginia is now leveling charges against him.  Is he screwed, or what?

[ChadTower]

Why the hell would a guy with a $100mil contract need to borrow a small sum like $2.5mil, and from a Canadian bank, no less? 

They'll never see dime one of that and they'll probably only be the first of many lenders about to come out and say Vick had borrowed a couple mil from them.  This is going to get ugly.

Anyone ready for the "Vick is also a gambling addict" stories?

[KenToad]

Wow, the bank wants almost $500 a day in interest! 

[ChadTower]

That's probably not unreasonable on a couple million dollars.

[tommy]

I think i will sue Vick for lost days of enjoying him play football. 

[ChadTower]

I enjoy the Falcons so much more now without him there.  Not that he ever was a threat to win a Super Bowl but he did make it harder for the Bucs to win the division.

[tommy]

The poor Falcons. If they only knew to hang on to Schaub they might be in a hell of a lot better situation. Who would have known.

They held on to him for many years with Vick there just to let him go at the perfect wrong time.

[ChadTower]

Many years, realistically, being two.  He was on the Falcons for three but few QBs are ready to be starters during their first season.

[shardian]

The poor Falcons. If they only knew to hang on to Schaub they might be in a hell of a lot better situation. Who would have known.

They held on to him for many years with Vick there just to let him go at the perfect wrong time.

Their class was their undoing. They traded Schaub as a favor because they:
A) Knew he was starter quality
B) Knew Vick would be their QB for like, ever.
C) Liked him and wanted to give him a chance to play.

[Cakemeister]

The poor Falcons. If they only knew to hang on to Schaub they might be in a hell of a lot better situation. Who would have known.

They held on to him for many years with Vick there just to let him go at the perfect wrong time.

As a Texans fan, I feel like it was the perfect right time.

Maybe the Falcons can draft another QB with the two number 2s they got for Schaub.

[jbox]

Wow, the bank wants almost $500 a day in interest! 

That's probably not unreasonable on a couple million dollars.

About 9%, which is pretty mediocre for a large balanced fund.

And of course, it's still probably 9% more then they'll ever end up with once the sharks finish tearing what assets this guy has to pieces.

[KenToad]

Wow, the bank wants almost $500 a day in interest! 

That's probably not unreasonable on a couple million dollars.

About 9%, which is pretty mediocre for a large balanced fund.

And of course, it's still probably 9% more then they'll ever end up with once the sharks finish tearing what assets this guy has to pieces.

Yeah, I guess it's a race to see who can squeeze the most out of the guy before it's all gone.  Still, I can't imagine accumulating $500 a day interest on a loan, but then again what would I do with 2.5 million dollars?   

Maybe a bar for my bartop ... 

[psik0tik]

Lesson Number 1...if you need a big loan go to canada.
Lesson Number 2...Karmas a ---smurfette---

[Ed_McCarron]

Maybe a bar for my bartop ... 

Better be one hell of a bar.

The fronting for the eighty-yard-long marble-topped bar had been made by stitching together nearly twenty thousand Antarean Mosaic Lizard skins, despite the fact that the twenty thousand lizards concerned had needed them to keep their insides in.

[KenToad]

Maybe a bar for my bartop ... 

Better be one hell of a bar.

The fronting for the eighty-yard-long marble-topped bar had been made by stitching together nearly twenty thousand Antarean Mosaic Lizard skins, despite the fact that the twenty thousand lizards concerned had needed them to keep their insides in.

 

I guess I meant bar as in brewpub, but thanks for the visual.

[shardian]

This just in:
Vick gets high, now on house arrest

[ChadTower]

Why is he on drug testing?

[HaRuMaN]

Dog-fighting and...
Dog-fighting and...
Dog-fighting and...
Dog-fighting and...
Dog-fighting and...

.... smokin' the reefer!

[ChadTower]

He hasn't been sentenced for dog-fighting stuff yet.  Can they make him submit to drug testing between plea and sentencing?

[shardian]

pleaing and admitting guilt, he effectively bypassed a trial. Since his sentencing is not for months, he is on probation until then. Under probation, you can be drug tested at any time.

[ChadTower]

Makes sense.  I didn't know people in that purgatory were on probation.

So basically he keeps getting dumber and dumber.

[abrannan]

Why the hell would a guy with a $100mil contract need to borrow a small sum like $2.5mil, and from a Canadian bank, no less? 

Certain loans can be tax-advantageous, particularly when they're used for investments.  If you can be reasonably sure that Interest - Tax WriteOff < Interest Earned - Capital Gains, it's advantageous to do so.  Using other people's money to do it just allows you to offload some of the risk.  It's like stock traders buying on margin, using other people's money to take advantage of a situation.

Besides, a $130 million, 10 year contract is generally backloaded, so even without his current legal issues, he'd likely not see a good sized chunk of that money.  The $37 mil in guaranteed bonus money is nice, but split out over 10 years is only $3.7 mil a year.  If you make $37,000 a year, it is not unreasonable to obtain a $25,000 loan to remodel a home, or other "investment".  Yes, I realize that when you're up at that order of magnitude things are a bit different, but large money loans to the already welathy is not an uncommon situation.

 

[ChadTower]

Vick's contract was dramatically front loaded with a massive amount of signing bonus money.  He got tens of millions when he signed it and the only prorating that went on was what counted against the salary cap, not what he actually received.

His contract was designed so that his actual year to year salary wasn't all that high and he was written a massive couple of checks over the first two years to make up for it.

[Hoopz]

Why the hell would a guy with a $100mil contract need to borrow a small sum like $2.5mil, and from a Canadian bank, no less? 

 It's like stock traders buying on margin, using other people's money to take advantage of a situation.
 

The difference is that most traders look at shorter term situations, albeit on larger amounts, and their cost to borrow is significantly lower than the interest that he was probably paying.  If you look at the LIBOR rate from a year ago, it was around 5.3%.  If he was being charged 9%, and I don't know that he was, it creates a much different scenario for what he would have to be earning to make this situation make sense.

[ChadTower]

And as we all know the guy isn't SMRT enough to do these things.  I wonder if his agent was taking him for a ride and it all blew up ahead of schedule.

[Hoopz]

Or his posse?

So the NFL can/will suspend him at least for one season AFTER he gets out of the pokey.  Then they can probably suspend him 4 games for the violation of the substance abuse policy or they can make it concurrent.  Regardless, he aint gonna be be bending over with his hands under another guy's crotch for a while...in the NFL I mean.

[abrannan]

Point taken, but he still has only seen less than $40 mil of the $130 million so far.  (2005 salary $600,000, 2006 salary $1,400,000) That still leaves almost 70% of his contract left to go.  To me, that's pretty backloaded.  A $2.5 mil loan still doesn't strike me as that odd.  

HooPZ - I think you were taking my analogy a little too literally.  It's not *exactly* like buying on margin.  Lemme put it another way.  My wife bought a car a few years back, and was able to get 1.9% financing on it.  We put the minimum down, and are not making any payments ahead of time, even though we could have bought the car outright.  We make more than 1.9% on that money just sitting in an ING account, so at the end of it all, we are better off financially by having the loan.

I won't pretend to know Vick's investment portfolio, or the real interest rate he is being charged, but it wouldn't be too much of a stretch to think that he's got a smaller percentage of his money (say, $2.5 million worth) in investments that are yielding more than 9%.  Shoot, most of my stock picks so far this year are well into double digit returns.

And we all know that it's not Mike or his agent that obtained that loan, it's his accountant.

[Hoopz]

HooPZ - I think you were taking my analogy a little too literally.  It's not *exactly* like buying on margin.  Lemme put it another way.  My wife bought a car a few years back, and was able to get 1.9% financing on it.  We put the minimum down, and are not making any payments ahead of time, even though we could have bought the car outright.  We make more than 1.9% on that money just sitting in an ING account, so at the end of it all, we are better off financially by having the loan.

I understand your point and its certainly valid.  You always have to look at your return relative to what it can be making in a risk free environment (US treas., money market yields ((which are primarily US treas.) and perhaps cd's) or where ever your cash is parked.

I am curious to know what the details of this loan are.  His agent's firm has a relationship with a financial planning firm that should have structured his funds so that he has some cash flow to take care of day to day expenses (food, clothing, dog fighting items) and take care of his long term needs (excluding the 20 cents a day he will make cleaning toilets while in the pen).  They are probably the ones who had the knowledge to go to a foreign bank to secure a loan for ____ purpose. 

[ChadTower]

...unless of course that "investment property" was for the same purpose as the "investment property" in West Virginia.

[tommy]

I'm sure they thought a guy who makes millions of dollars would be a great no risk loan and would never have to worry about the guy not paying it back and they could make a pretty penny off of it too.

[ChadTower]

Hell no, those guys are just as big a risk, because when they fall they fall much harder.  And it happens a lot more often than one would think.

[FrizzleFried]

Hell,  after all those RIMS Vick bought with his dough I am surprised he has enough $$$ for a lawyer...


....THEY SPINNIN'!!!

[RTSDaddy2]

As a Falcons fan from way back in the Bartkowski (sp? - I never was sure how to spell the dude's name) era,  I'll say it again - good riddance to bad rubbish.  Tommy, you can have this idiot for your team for the rest of eternity as far as I'm concerned.

I don't like being dead last - but I wouldn't trade it to be in first place with an idiot like Vick leading my team. People talkabout how destructive T.O. is to locker rooms....my god, even Owens hasn't dismantled a franchise the way Vick has!

It will be a while, I'm sure, but somewhere down the line the Falcons will actually have an offensive line  and a quarterback to go with it....I'm sure of it.  Damn, though, can't believe all they gave up with Schaub, even though it was the right thing to do.

[Hoopz]

As a Falcons fan from way back in the Bartkowski (sp? - I never was sure how to spell the dude's name) era,  I'll say it again - good riddance to bad rubbish.  Tommy, you can have this idiot for your team for the rest of eternity as far as I'm concerned.

I don't like being dead last - but I wouldn't trade it to be in first place with an idiot like Vick leading my team. People talkabout how destructive T.O. is to locker rooms....my god, even Owens hasn't dismantled a franchise the way Vick has!

It will be a while, I'm sure, but somewhere down the line the Falcons will actually have an offensive line  and a quarterback to go with it....I'm sure of it.  Damn, though, can't believe all they gave up with Schaub, even though it was the right thing to do.

Billy "White Shoes" Johnson!  I remember pretending to be him in the backyard as a kid.

[ChadTower]

The Falcons sealed their eternal doom when they traded Brett Favre for a draft pick.  Ron Wolf's residue will stain the Falcons forever.

[RTSDaddy2]

I could not agree more with Chad on this.  Amen to that, but that's what we got for having the lunatics running the asylum for so many years.

Hate to jump thread, but good to great front office people are exactly why the Braves (and now hopefully the Thrashers) thrive, and idiots like the Hawks and Falcons flounder.  I've told my family a 100 times if I've said it once....excellence starts from the top and trickles down.  Yes, I'm sure there are exceptions to the rule, but few and far between I'd think.

Anyway, we must move on - try to get past this mess as best we can....but get used to being dead last for a while.  Nothing new there though.

[ChadTower]

You may as well start printing up the "Welcome Brian Brohm" banners now.