Judge rejects Vick’s bankruptcy plan

Newport News, Va. — A judge has rejected suspended Falcons quarterback Michael Vick’s plan to emerge from bankruptcy, but he is giving Vick another chance as he nears the end of his prison sentence on federal dogfighting charges.

Judge Frank J. Santoro called Vick’s plan unworkable Friday, saying it would leave the suspended NFL star with up to a $9 million “hole” on top of the payments he would have to make to his creditors. As of December, Vick had $16 million in assets and $20.4 million in debts, court records show.

The judge added that some of Vick’s plans to make money once he gets out of prison are speculative — including a $600,000 proposal for him to star in a documentary. And Santoro suggested that Vick should consider selling more of his assets, including one of the two houses he wants to keep for himself and his mother in Virginia.

“I am going to give you one more chance to come up with a workable reorganization plan, but that is your last chance,” Santoro told Vick, who wore a gray suit and white dress shirt to the two-day hearing. “I think it would be important for you to make the best of it.”

Santoro ordered a hearing on the status of Vick’s next bankruptcy plan for April 28. Vick’s attorneys, meanwhile, complained they have been handicapped in working with Vick because he has been imprisoned in Leavenworth, Kan. They asked Santoro to allow him to remain in a local jail here until the April 28 hearing. Santoro said he did not have the authority to do that but would consider ordering his appearance at the April 28 hearing.

During his ruling, Santoro called Vick a phenomenal football player who had “limited financial sophistication” and trusted some people with his money when they “may not have been worthy of your trust.”

“You need to have strong controls in place with respect to your finances,” Santoro advised Vick.

Earlier in the day, Santoro asked him if he realized that he had racked up about $3.7 million in bills for professional services during the course of his bankruptcy case, or about $13,700 a day for the last 270 days. Vick said he was aware of the costs.

Vick also testified that a series of financial advisers made bad investments with his money and inexplicably bought $90 million in life insurance for him and his mother, requiring him to pay $1.2 million in annual premiums. Vick also talked about how he has financially supported a large group of relatives and friends.

“I put a lot of strain on myself. It was a big burden,” Vick said. “I don’t know why, but I feel I was obligated to do that, coming from where I came from.”

Santoro commended Vick for financially supporting his family but he urged him to strike a balance, saying: “You can’t be everything to everybody.”

Vick said he has hired attorneys and an accountant to help him manage his money better once he gets out of prison.

One of Vick’s key creditors, Joel Enterprises, objected to his bankruptcy plan during the hearing. An attorney for Joel Enterprises, which claims Vick owes about $4.5 million, questioned Vick’s credibility and past money management while he was on the stand. Andrew Joel, a Richmond sports agent, filed a lawsuit against Vick in 2006, claiming he reneged on an endorsement deal.

“You have won. And that’s enough,” Santoro firmly told the Joel Enterprises attorneys at the end of the hearing Friday. “I think this process has gone far enough.”

Vick, who said he earned between $10 million and $12 million annually before he went to prison, is now being paid 12 cents an hour as a janitor in prison. He said he works an 11 p.m. to 3 a.m. shift. The time in prison, Vick added, has given him time to reflect on the actions that got him in trouble with the law.

As part of a 2007 plea deal, Vick admitted bankrolling a business called Bad Newz Kennels to raise and train pit bulls for dogfights on his property in Virginia and in other states. He said he provided most of the money to operate the business and bet on fights. He admitted to being involved in killing several pit bulls that did not make the grade as fighters.

“I committed a heinous act,” Vick said. “It was very irresponsible. I didn’t do all the right things at that point in my life. What I did was wrong. When you know better, you are supposed to do better.”

Vick also talked about a key part of his plan to emerge from bankruptcy and pay his creditors: rejoining the NFL. Under the plan the judge rejected Friday, Vick would keep the first $750,000 of his annual income over the next five years. After that, a percentage would go to creditors.

Vick testified that he believes he has a shot at being reinstated by the league because he is remorseful for his actions. He predicted he has another 10 to 12 years left in his football career, assuming he stays in shape and avoids injuries.

“If I do the right thing and show true remorse, I think I will have an opportunity” to rejoin the NFL, Vick told the court.

That wording is key because NFL Commissioner Roger Goodell has said he wants to see true contrition from Vick before considering lifting his suspension.

The former Virginia Tech standout added that he has been staying in shape, reading, writing and playing basketball on a championship-winning prison team. Now 28, he said he wants to build a new life with his fiancée and children once he gets out of prison. He is scheduled to be released to home confinement at a house he owns in Hampton, Va., on May 21.

“I can’t live life like the old Mike Vick,” he said. “I was very immature. I was naïve to a lot of things.”