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Some Twists And Turns Possible Regarding The Bankruptcy Filing Of Evander Kane

from Daniel Kaplan and Kevin Kurz of The Athletic,

Evander Kane and the San Jose Sharks have informed federal bankruptcy court that they are considering ending Kane’s contract. The seven-year, $49 million pact, signed in 2018, has $29 million remaining, according to creditor filings.

Kane in January filed for Chapter 7 bankruptcy, listing debts of $26.8 million and assets of $10.2 million. This move is sure to spark ferocious opposition from creditors, several of whom are banks whose loans to Kane are secured by his contract.

Why would Kane consider negating his lucrative contract? The creditor source said it is unclear, but given the emerging vitriol between the parties, Kane may want to deprive creditors of their main source of financial redress. Athlete bankruptcies are not uncommon, but the harsh friction already evident between Kane and the creditors is.

A similar question is, why would the Sharks, who are not a party to the bankruptcy, sign on to this week’s motion? Could the team see this as a way to get out from under a pricey contract as financial losses mount because of the pandemic?

continued ($$$)

Filed in: NHL Teams, San Jose Sharks, | KK Hockey | Permalink
 

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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