May 18th, 2021 4.00pm
NFL star Evander Kane has been in severe financial problems for some time now, but things have taken a turn to the worse after a bank filed a lawsuit against the San Jose Sharks player, demanding £10.6 million.
Despite being paid £4.95 million per year, Kane is in serious debt.
Started the Year with Bankruptcy Filing
The year didn’t start in the right way for Kane, who filed for bankruptcy in January, claiming he owed nearly £19 million. The news came as a shock, as Kane inked a seven-year extension to his deal with the Sharks, worth £34.6 million.
The subsequent court proceedings revealed the full scale of his problems. Zions Bancorp, one of Kane’s creditors, stated in a motion the hockey star was suffering from a gambling addiction and disclosed a number of his poor financial decisions made over the last couple of years. But that’s not all, as Zions plans to file a separate lawsuit against the star debtor.
In its lawsuit, Professional Bank alleges that Kane committed fraud by applying for a £1.1 million loan, which was later approved. According to the court documents, the bank claims the disgraced hockey star never meant to return the money. That’s why it’s seeking punitive damages worth ten times the size of the loan Kane received.
The lawsuit further claims that Kane had kept on borrowing large sums of money from other US banks, continually increasing the size of debts owed to a rapidly-growing list of investors, including Centennial Bank and South River Capital.
Kane Kept on Borrowing Money
It gets more interesting how the loans were secured in the first place. It was done against Kane’s multi-million deal with San Jose Sharks. On several occasions, banks approved the loans on the assurance the NFL franchise would repay the money from the Canadian player’s salary.
However, Professional Bank stated in its lawsuit that Kane had soon canceled automatic payments from his team. Another lender, Centennial Bank, which has also filed a complaint against the athlete, claims the same.
Centennial Bank sued Kane in February, only a couple of days before the player applied for bankruptcy, looking to get £10.6 million in principal and interest.
The main goal of the suit filed by Professional Bank is to change the category of the Sharks winger’s bankruptcy. If the court rules in the bank’s favour, Kane would be treated as a company. In practice, this would allow creditors to collect their debt through the remaining £20.5 million from his current contract with the team from San Jose.
A Long List of Creditors
The bankruptcy filing submitted by Kane lists a total of 47 creditors. It also claims that his monthly income is minus £65,857.68, despite the fact Kane has a staggering annual salary. The filing also lists seven people living in his home, including his parents and a grandmother.
The motion, filed by Zions Bancorp, argues that Kane shouldn’t be allowed to handle his multi-million salary, as he will continue to use funds to fund his gambling addiction. Instead, his income should be committed to a large number of his creditors.
His gambling problems were first made public in November 2019, when the Cosmopolitan of Las Vegas filed a lawsuit to get back around £350,000 Kane owed in unpaid casino markers.
In the meantime, the player resolved the matter with the Las Vegas casino, and the case was dropped in April last year.
Unfortunately, we’re confident we’ll be hearing more from him in the future.
Despite a multi-million contract, he’s been experiencing severe financial problems.