Michael Vick, Money and the NFL: The Business Side of The Situation

Michael Vick is back on the field, (I wrote about this last week) but his problems are far from over. In the online records for Michael Vick's bankruptcy filing, he is listed as owing $12.8 million dollars to his three largest creditors, and having debts between $10 and $50 million (a wide range, right?). He also owes between $6.5M and $7.5M to his old team, the Atlanta Falcons, for a sigining bonus paid to him when he was granted a $130 million dollar contract in January, 2005.

Estimated by Sports Illustrated in 2006 to earn $25.4 million per year in salary and endorsements, Michael Vick was a wealthy man. Some might believe that he is wealthy once again, now that he's been signed by the Philadelphia Eagles. But not so fast.

First of all, Vick's new deal is only worth a reported $1.625M, with a $5.2M option at the end of the 2010 season. Payment only occurs if Vick isn't cut by the team before the start of the season. This may seem like a lot of cash, but it's not very much money when weighed against the magnitude of Vick's legal and financial woes. Right now, he has a multi-millionaire's problems without a true multi-million dollar salary.

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Michael Vick Drama

Philadelphia Eagles quarterbacks Michael Vick, left, and Kevin Kolb, participate in afternoon practice at NFL football training camp in Philadelphia, Monday, Aug. 17, 2009. (AP Photo/Matt Rourke)

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Michael Vick Update

Philadelphia Eagles quarterbacks Michael Vick, left, and Kevin Kolb, participate in afternoon practice at NFL football training camp in Philadelphia, Monday, Aug. 17, 2009. (AP Photo/Matt Rourke)

Philadelphia Eagles quarterback Michael Vick is seen during afternoon practice at NFL football training camp in Philadelphia, Monday, Aug. 17, 2009. (AP Photo/Matt Rourke)

Philadelphia Eagles quarterback Michael Vick throws the ball during afternoon practice at NFL football training camp in Philadelphia, Monday, Aug. 17, 2009. (AP Photo/Matt Rourke)

Philadelphia Eagles quarterback Michael Vick practices at NFL football training camp in Philadelphia, Monday, Aug. 17, 2009. (AP Photo/Matt Rourke)

Philadelphia Eagles quarterbacks Donovan McNabb, left, and Michael Vick are seen during afternoon practice at NFL football training camp in Philadelphia, Monday, Aug. 17, 2009. (AP Photo/Matt Rourke)

Philadelphia Eagles quarterback Michael Vick throws during NFL football practice at the Eagles' practice facility, Sunday, Aug. 16, 2009, in Philadelphia. (AP Photo/Matt Slocum)

Philadelphia Eagles quarterbacks Michael Vick, right, and Donovan McNabb react during NFL football practice at the Eagles' practice facility, Sunday, Aug. 16, 2009, in Philadelphia. (AP Photo/Matt Slocum)

Philadelphia Eagles quarterback Michael Vick waits to throw during NFL football practice at the Eagles' practice facility, Sunday, Aug. 16, 2009, in Philadelphia. (AP Photo/Matt Slocum)

There are also some financial reasons that the NFL chose to reinstate Michael Vick and reasons that the Eagles chose to sign him. They didn't bring Michael on board because they think he's a great guy, or simply because he is a great athlete. There is money to be made in this huge gamble, and the Eagles are going to make it.

There are lingering questions about Michael Vick's signing with the Eagles:

- How does Donovan McNabb feel about the team signing another top quarterback?

- Why choose Philadelphia over other possible cities for Vick to go to?

- What are some of the financial incentives (beyond winning football games) for taking a chance on Michael Vick?

- Why was Vick's suspension from the NFL shorter than expected?

I spoke with Dr. Deborah Stroman, founder of LASER -- Life After Sports with Effective Results. She is one of the leading experts on sports in America. Click below to listen!

Dr. Boyce Watkins is a Faculty Affiliate with the College Sport Research Institute at The University of North Carolina at Chapel Hill. To have Dr. Boyce commentary delivered to your email, please click here.