San Jose Sharks Player Sued for Gambling Problem

San Jose Sharks, a popular NHL team, has had one of their professional athletes sued for $15 million. Evander Kane has been part of the team since 2018, when he first signed his contract. This latest development follows the lawsuit that was filed against Kane in February this year by another creditor, Zions Bancorp. Following the first lawsuit, Kane declared bankruptcy under Chapter 7. This means that creditors are unable to get their hands on his future earnings according to federal law. However, these two lenders are looking to appeal that decision.

Kane Files for Bankruptcy

Earlier this year, Evander Kane, of the NHL’s San Jose Sharks, filed for bankruptcy. Documents were shared with the California court that proved the professional athlete has a serious gambling problem. At the time of the bankruptcy declaration, Kane was in debt for close to $29 million. Kane lost close to $1,5 million from December to January alone. Evander Kane filed for bankruptcy after Centennial bank filed a lawsuit against him and the team in Florida’s federal court. According to the lender, Kane owes the company $8,3 million in interest and principal.

This was less than three years after he had signed the $49 million extension contract with the Jose Sharks. Another of Kane’s creditors, Zions Bancorp, stated that the famous hockey player has made poor and self-centred decisions. The latest creditor to come forward is Professional Bank. The financial institution has accused Kane for fraud by applying for a loan of $1,5 million. The lender has shared that the actions taken since the funds were given to him indicate that he never had any intentions of paying it back. The bank is currently suing for 10 times the amount issued for punitive damages.

Security Taken Against Deal

According to Professional Bank’s lawyers, Kane was borrowing large sums of money from several other banks resulting in a significant amount of debt owed to Professional Bank and other creditors.

The loans were taken out with Kane using his contract extension with the San Jose Sharks as security. In most cases, lenders approved the loans under the premise and assurance that repayments would be made directly to them from the NHL team from Kane’s wages. However, according to both Centennial Bank and Professional Bank, Evander Kane quickly revoked the Shark’s payments which were meant to be automatic.

The professional suit that Kane currently faces seeks to change his bankruptcy declaration from Chapter 7, for individuals, to chapter 11, which deals with companies. Chapter 7 is often referred to as a last resort for debtors that strips the individual of all assets that are not deemed needs for living. Kane’s bankruptcy documentation listed assets to the value of $10,2 million, including three residential properties. In addition to this, Kane is involved in legal proceedings with a woman who claims that the player attacked her at a hotel in 2016.
Changing the category of the declaration would allow the professional hockey player’s creditors to access his future earnings or the $29 million that is still set to be received through the Sharks contract.

Kane’s List of Creditors

Kane’s bankruptcy filing listed a total of 47 creditors. The filing also listed that while the athlete earns $7 million annually, his monthly expenses and income leave him with a deficit of around $91,131 every month. The documentation shed light on Kane’s domestic situation, listing his seven dependents. This includes Kane’s two uncles, his grandmother, and his parents.

Zions BanCorp’s motion included the legal and financial opinion that the athlete should not be allowed to continue the management of his substantial bonuses and salary or be allowed to engage in gambling activities to speculate over his income instead of paying his creditors off immediately.

Kane’s slippery slope began when a Las Vegas gaming venue, Cosmopolitan, took Kane to court to recover unpaid casino markers to the value of $500,000. The case was eventually dropped in April last year but it is unclear whether the venue received its pound of flesh, struck a deal with Kane or received the outstanding funds from Kane.