Published: May 5, 2021, 04: 28 hrs.
Last updated: May 5, 2021, 05: 06 hrs.
NHL Star Evander Kane's financial problems have taken a turn for the worse after Professional Bank filed a lawsuit against the ailing San Jose Sharks winger, demanding $ 15 million.
Kane declared bankruptcy in January, claiming $26. 8 million in total debt. That was less than three years after he signed a seven-year extension with the Sharks for $49 million.
Another of his creditors, Zions Bancorp, in a petition to bankruptcy court in February alleged that the hockey player had a "serious gambling problem" and made him "poor, self-centered financial decisions ". Zions is also considering suing its celebrity debtor.
Meanwhile, Professional Bank accuses Kane of committing fraud by applying for and receiving a $1.5 million loan, which he claims he never intended to pay back. back. The bank is seeking punitive damages ten times that amount.
According to the lawsuit, Kane "also borrowed huge amounts of money from other banks, including Centennial Bank, Zions Bancorporation, and South River Capital ... [and] ... incurred huge amounts of debt to other creditors."
These loans were secured by Kane's lucrative contract with the Sharks. In many cases, the lenders agreed to loans for insurance repayments that would be made to them directly by the Sharks from the Canadian athlete's salary.
But according to a lawsuit by Professional Bank and another from Centennial Bank, Kane quickly revoked the automatic payments from the Sharks.
Centennial's lawsuit was filed in February, just days before Kane filed for bankruptcy. It seeks to recover $8.3 million in principal and interest.
The Professional Lawsuit seeks to change Kane's bankruptcy category from Chapter 7, which applies to individuals, to Chapter 11, which is for businesses. Chapter 11 could allow Kane's creditors to seize his future earnings - $29 million left over from his Sharks contract.
The athlete's bankruptcy filing lists 47 total creditors. He also claims that despite earning $7 million per year, his monthly income is minus- $ 91, 131. 13. He lists seven dependents living in his home, including his parents, two uncles, and grandmother.
According to Zion's motion: "[Kane] should not be allowed to continue to get by with his substantial salary and bonuses or be allowed to continue to gamble and speculate with his income instead of passing it on to his creditors. "
Kane's gambling was first noticed in November 2019 when the Las Vegas-based Cosmopolitan sued him to recover $ 500, 000 in unpaid casino tags.
That case was dismissed in April 2020, presumably because Kane settled the debt.