Falcons had been seeking $20M from imprisoned QB
By STEVE WYCHE
The Atlanta Journal-Constitution
Published on: 02/04/08
Michael Vick will only have to repay $3.75 million of the $20 million the Falcons sought to recover from their imprisoned quarterback.
A ruling Monday by a U.S. District judge overturned a previous decision by an arbitrator. It was originally ruled that Vick had to repay the Falcons $20 million in bonuses since he could not earn them due to his 23-month federal prison sentence and indefinite suspension by the NFL. Vick was sentenced in December to felony charges related to dogfighting.
The Falcons could appeal David Doty's ruling but were non-committal Monday.
Vick's attorney, Lawrence Woodward Jr., said Vick was happy with the ruling but understands there could be appeals.
"He's grateful for some good news but he realizes he needs to keep doing all the right things to get back to playing football," Woodward said.
The Falcons issued the following statement from President Rich McKay: "While we are disappointed by Judge Doty's decision, this ruling does not affect our salary cap management for the 2008 season. Any potential recovery would have only affected our 2009 salary cap. As to our future legal strategies, we will meet with our legal representatives to more fully understand our options before making that determination."
The NFL criticized the ruling.
"It makes no sense that an individual who willfully violates his contract is entitled to be paid tens of millions of dollars even though he is in jail and providing no services whatsoever to his employer," NFL spokesman Greg Aiello said in a statement.
"We're very pleased by the ruling," NFL Players Association general counsel Richard Berthelsen said in a phone interview. "It's an enforcement of something that we felt we negotiated in the 2006 extension of the collective bargaining agreement."
The players' union got owners to agree to provisions that allow owners to recoup signing bonus money but not other bonus money, even in contracts like Vick's (10 years, $130 million), that were signed before the 2006 extension. Doty ruled that all but $3.75 million of the money the Falcons sought was non-signing bonus money.
Vick has been paid roughly $37 million in bonuses by the Falcons.
Should Vick, who remains on the roster, repay the Falcons $3.75 million, Atlanta would receive a credit for that amount toward the salary cap a year after receiving the money. If Vick never pays the money, the Falcons never receive the credit.
Atlanta had not planned to get any relief from the Vick case for 2008, but still project to have more than $20 million under the salary cap to use to sign free agents.
The salary cap is expected to increase from $109 million to $116 million. Atlanta also is expected to release some players to clear additional space to re-tool the roster under new general manager Thomas Dimitroff.
Vick will cost the team $7.57 million against the salary cap this season and more than $8 million in 2009.
— The Associated Press contributed to this report.
By STEVE WYCHE
The Atlanta Journal-Constitution
Published on: 02/04/08
Michael Vick will only have to repay $3.75 million of the $20 million the Falcons sought to recover from their imprisoned quarterback.
A ruling Monday by a U.S. District judge overturned a previous decision by an arbitrator. It was originally ruled that Vick had to repay the Falcons $20 million in bonuses since he could not earn them due to his 23-month federal prison sentence and indefinite suspension by the NFL. Vick was sentenced in December to felony charges related to dogfighting.
The Falcons could appeal David Doty's ruling but were non-committal Monday.
Vick's attorney, Lawrence Woodward Jr., said Vick was happy with the ruling but understands there could be appeals.
"He's grateful for some good news but he realizes he needs to keep doing all the right things to get back to playing football," Woodward said.
The Falcons issued the following statement from President Rich McKay: "While we are disappointed by Judge Doty's decision, this ruling does not affect our salary cap management for the 2008 season. Any potential recovery would have only affected our 2009 salary cap. As to our future legal strategies, we will meet with our legal representatives to more fully understand our options before making that determination."
The NFL criticized the ruling.
"It makes no sense that an individual who willfully violates his contract is entitled to be paid tens of millions of dollars even though he is in jail and providing no services whatsoever to his employer," NFL spokesman Greg Aiello said in a statement.
"We're very pleased by the ruling," NFL Players Association general counsel Richard Berthelsen said in a phone interview. "It's an enforcement of something that we felt we negotiated in the 2006 extension of the collective bargaining agreement."
The players' union got owners to agree to provisions that allow owners to recoup signing bonus money but not other bonus money, even in contracts like Vick's (10 years, $130 million), that were signed before the 2006 extension. Doty ruled that all but $3.75 million of the money the Falcons sought was non-signing bonus money.
Vick has been paid roughly $37 million in bonuses by the Falcons.
Should Vick, who remains on the roster, repay the Falcons $3.75 million, Atlanta would receive a credit for that amount toward the salary cap a year after receiving the money. If Vick never pays the money, the Falcons never receive the credit.
Atlanta had not planned to get any relief from the Vick case for 2008, but still project to have more than $20 million under the salary cap to use to sign free agents.
The salary cap is expected to increase from $109 million to $116 million. Atlanta also is expected to release some players to clear additional space to re-tool the roster under new general manager Thomas Dimitroff.
Vick will cost the team $7.57 million against the salary cap this season and more than $8 million in 2009.
— The Associated Press contributed to this report.
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