Michael Vick's creditors welcome new $100 million deal

In 2009, about a month after Vick was released following 18 months in prison on a dogfighting conviction, a federal judge in Virginia approved his Chapter 11 bankruptcy plan to repay about $20 million in debts. Vick had lost the 10-year, $130 million contract he signed with the Atlanta Falcons in 2004.

This week, on the heels of his 2010 re-emergence as a Pro Bowl quarterback, Vick and the Eagles agreed to a six-year deal. The Associated Press reports it is worth $100 million with about $40 million guaranteed. Vick made about $1.6 million with Eagles in 2009 and about $5 million last season.

"I would say that this confirms that the creditors made the right decision by putting their faith in Mr. Vick rehabilitating his career and his reputation,'' says Norfolk, Va., attorney Ross Reeves, counsel for the Committee of Unsecured Creditors in the Vick bankruptcy.

Under terms of the bankruptcy, which runs through 2014 and required Vick to sell off multiple homes, vehicles and other assets, he agreed to pay "significant amounts of his future income" toward debts. The schedule is based on how much he earns each year — before taxes. It stipulates these paybacks to creditors:

• 10% of income up to $750,000

•25% of income over $750,000 and up to $2.5 million

•30% of income over $2.5 million and up to $10 million

•40% of income above $10 million

Vick's creditors include banks, the Internal Revenue Service, his bankruptcy attorneys and the Falcons (about $6.5 million in repayment of bonus monies). He also owes about $6 million to former agent Andrew Joel of Richmond, Va., who won a legal judgment against Vick after filing a suit alleging Vick reneged on a deal to have Joel represent him in endorsement deals coming out of Virginia Tech in 2001.