Mark Brunell - Chapter 11 (1 Viewer)

[Ron_Mexico]

(Rotoworld) Free agent QB Mark Brunell is expected to file for Chapter 11 bankruptcy Friday morning.

Analysis: Brunell has earned close to $52 million over the past 10 years, but he's facing a string of lawsuits due to failed real estate and business loans. The 39-year-old is expected to sign with the Jets as Mark Sanchez's veteran backup in July.

 

[dgreen]

Are you confused on why the Jets are signing him?

 

[Hoot&HoLLer]

I wonder if this falls under commissioner Goodell's personal conduct policy and if so will Brunell have to get a talking to.

 

[SuperJohn96]

What an idiot.

 

[Brothers Mayhem]

Are you confused on why the Jets are signing him?

Just stabbing in the dark, but Brunell could be a great mentor for Sanchez as well as a "Hold the fort down" kind of QB should sanchez get injured. But truthfully - Rex is a players coach. Brunell needs an income right now and this very well could be a friend helping out a friend. Again, I am just throwing round plausible scenario's.

 

[H.K.]

Mark Brunell declares bankruptcy

Posted by Mike Florio on June 25, 2010 8:35 AM ET

For the second time in less than three years, a former NFL starting quarterback has sought protection not from five offensive linemen, but from the eleventh chapter of the U.S. bankruptcy laws.

The last time around, it was Mike Vick. This time, it's Mark Brunell.

Abel Harding of the Florida Times-Union reports that Brunell plans to make the filing today, despite earning $52 million during his career.

The tipping point seems to be multiple lawsuits resulting from failed business loans for which Brunell and others co-signed. The fact, however, that the total liability under those claims falls in the neighborhood of $3.3 million suggests that Brunell hasn't squirreled away much, if any, of the money he made while playing. To qualify for bankruptcy protection, assets can't exceed debts. Thus, Brunell necessarily has less money than he owes.

The filing will trigger an automatic stay of all pending litigation. Then, the process converts into an effort to identify Brunell's non-exempt assets and to distribute them to creditors based on priority. Eventually, a plan is approved for repaying as much of the debts as possible.

Typically, some creditors end up getting pennies on the dollar, or nothing at all.

There's also a chance that the filing will be converted into a full-blown liquidation under Chapter 7, where Brunell basically comes out of the process with the shirt on his back and the roof over his head, and everything else goes to creditors.

He reportedly plans to sign with the Jets on or after July 22, when the rules of the "Final Eight Plan" expire. It remains to be seen whether the Jets will choose to follow through on their interest, given that Brunell necessarily brings to Broadway the kind of baggage that some teams would prefer to avoid.

I would like to read more about the bolded when additional information is available.

 

[GregR_2]

I wonder if this falls under commissioner Goodell's personal conduct policy and if so will Brunell have to get a talking to.

2/10

 

[Jason Wood]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

 

[massraider]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

I just read an article recently, cannot remember where or which team (thought it was the Falcons), about a team holding a seminar on personal finance for their players. I remember thinking it was a great idea, and teams should do it all the time, and wondered why they hadn't done it before. There was a blurb in the article that teams had tried it before, but there was always a bad turnout. It's a shame.

 

[Don Quixote]

What an idiot.

A lot of people lost money in the real estate market over the past few years. Brunell not the first or the last.

 

[H.K.]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

Isn't it possible for children's assets be protected from bankruptcy if the accounts are opened for them in 529's, UGMA's or UTMA's? Especially if it is well before (i.e. years) before the filing? Seems premature to pass judgment...FWIW, here is another article:

JACKSONVILLE, Fla. -- Former Jaguars star Mark Brunell is filing for bankruptcy.Earlier this month, Brunell, along with two of his former teammates Todd Fordham and Joel Smeenge faced multiple loan defaults in connection to their company, Champion LLC.Former Jaguars star Joel Smeenge has already filed for bankruptcy.In a statement released this evening, Brunell writes:This week with much regret, I will take the step of filing with the court to have my personal finances reorganized under Chapter 11 bankruptcy code. After much deliberation, and many years of shouldering enormous amount of debt resulting from passive real estate investments, it has become clear that this is the only viable course of action.I have been a silent partner of a group of friends engaged in real estate development with investments in Florida and elsewhere. The timing of the group's real estate acquisitions at the height of the real estate market, in hindsight, clearly was not good, particularly given the subsequent collapse of the economy. I have personally made the payments on these loans in good faith for several years as we worked hard to find buyers, partners, or refinancing. In the end we couldn't and I'm no longer able to shoulder this burden.Struggles in tough times like these are character builders and I have learned, and am presently learning, many lessons through this process. It has reaffirmed what is most important to me - my faith, my family and friendships.My family and I will continue our tradition of trying to make a positive difference in our community, especially with initiatives serving children. We plan to continue this commitment and celebrate our many blessings each day.Brunell won the Super Bowl with the New Orleans Saints earlier this year. He's expected to sign a contract with the New York Jets soon for the backup quarterback slot. Last February, we reported on the first lawsuit, involving CNL Bank based in Jacksonville. The bank accused the NFL stars of failing to make payments on a $2.2 million loan. That case is still pending, but up in Michigan, a judge has already ruled against Brunell and his former teammates. A bank based in Grand Rapids, Mich., Select Bank, accuses them of defaulting on a $1.1 million loan. Michael Freed, who represents Brunell and all the other defendants in the lawsuit, says there is no question that the company (Champion LLC) did not remain current on the loan. "He wishes he didn't sign it, but he did," Freed said earlier this month. Select Bank's lawyer said the failed business involved real estate projects in Traverse City and Grand Rapids. Freed said there are other loan defaults involving the players, but wouldn't reveal their locations. Freed said in the CNL Bank and Select Bank cases, they're working with the banks to liquidate the property. The local CNL Bank case still has a trial pending.Another local business just filed suit. The Esplanade at Town Center Condo Association filed a lien totaling about $2,000. It was for unpaid dues.

 

[PlasmaDogPlasma]

Where's your God now Mark?

 

[CalBear]

What an idiot.

A lot of people lost money in the real estate market over the past few years. Brunell not the first or the last.

Exactly; anyone who put a lot of money into real estate near the top of the market got hosed. Brunell got a huge signing bonus in 2007, near the very top of the market; buy a few properties and watch them go underwater and suddenly you're in big trouble.

 

[Addai's Adidas]

Knee surgeries are expensive.

 

[Brothers Mayhem]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

I just read an article recently, cannot remember where or which team (thought it was the Falcons), about a team holding a seminar on personal finance for their players. I remember thinking it was a great idea, and teams should do it all the time, and wondered why they hadn't done it before. There was a blurb in the article that teams had tried it before, but there was always a bad turnout. It's a shame.

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.This comment may not necessarily apply to Brunell or any QB for that matter (As I believe to play QB in the NFL, you have to have and be able to use a brain) Nor does it apply across the board - but it does apply much greater than it should.

 

[FavreCo]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

I just read an article recently, cannot remember where or which team (thought it was the Falcons), about a team holding a seminar on personal finance for their players. I remember thinking it was a great idea, and teams should do it all the time, and wondered why they hadn't done it before. There was a blurb in the article that teams had tried it before, but there was always a bad turnout. It's a shame.

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.This comment may not necessarily apply to Brunell or any QB for that matter (As I believe to play QB in the NFL, you have to have and be able to use a brain) Nor does it apply across the board - but it does apply much greater than it should.

No kidding. These people are idiots. What is the percentage of players who end up broke? It's ridiculous. Had Barry Foster back in the 90's on my dynasty team. He retired abruptly with a couple good years left in his legs (*******). He said he had made enough to retire. IT was a fraction of Brunell's $.

 

[habsfan]

There are some high income earners that will go to any lengths to reduce their tax liabilities, even if it means getting into ventures that are far riskier than just paying the taxes and being done with it. These folks are typically focused on what they do to earn this money, they aren't financial planners and they can be an "easy mark" for people that do provide that sort of advice.

 

[CalBear]

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.

Lots of people whose educational background and sole job is to work with interest rates, margins, etc., lost their shirts in real estate. Plenty of previously-respected financial analysts were telling everyone to buy real estate in 2006-2007, so it's not like he was investing in tulips or baseball cards. Certainly no one running an investment seminar would have given the advice to stay away from real estate.

 

[massraider]

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.

Lots of people whose educational background and sole job is to work with interest rates, margins, etc., lost their shirts in real estate. Plenty of previously-respected financial analysts were telling everyone to buy real estate in 2006-2007, so it's not like he was investing in tulips or baseball cards. Certainly no one running an investment seminar would have given the advice to stay away from real estate.

Peter Schiff!!!!But yeah, aside from him, you are right.

 

[Hoot&HoLLer]

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.

Lots of people whose educational background and sole job is to work with interest rates, margins, etc., lost their shirts in real estate. Plenty of previously-respected financial analysts were telling everyone to buy real estate in 2006-2007, so it's not like he was investing in tulips or baseball cards. Certainly no one running an investment seminar would have given the advice to stay away from real estate.

Nice Charles Mackay reference with the tulips.

 

[massraider]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

I just read an article recently, cannot remember where or which team (thought it was the Falcons), about a team holding a seminar on personal finance for their players. I remember thinking it was a great idea, and teams should do it all the time, and wondered why they hadn't done it before. There was a blurb in the article that teams had tried it before, but there was always a bad turnout. It's a shame.

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.This comment may not necessarily apply to Brunell or any QB for that matter (As I believe to play QB in the NFL, you have to have and be able to use a brain) Nor does it apply across the board - but it does apply much greater than it should.

Bernie Kosar went broke too. Intelligence has nothing to do with it. You can be an idiot and be smart with your money.

 

[Hoot&HoLLer]

Last i heard, aaron brooks was doing pretty good with his money. Yet as quarterback of the saints he always came across a little bit slow. You just never know who's gonna do well and who is not when it comes to managing money.

 

[dgreen]

Seems premature to pass judgment...

New here?

 

[Holy Schneikes]

I don't get all of the righteous indignation at all.

The guy screwed up messing around in the real estate market. Big deal. Lots of people do that. Some of them are pretty smart. He just got nailed with some bad timing and probably some bad advice.

If you want to call him an idiot, I guess that makes SOME sense (though not a lot), but to act like he's a bad person because of it is just plain stupid. He ain't Bernie Madoff, he just lost his shirt. And it's not even like he spent all of his money on private jets, jewelry, yachts and cars (well, maybe he did, but that's not what the story is talking about).

People need to realize that rich people can go broke as easily as poor people can with bad decisions - it's just a different scale. How many times has Trump filed for protection?

 

[CalBear]

People need to realize that rich people can go broke as easily as poor people can with bad decisions - it's just a different scale. How many times has Trump filed for protection?

It's even more likely in the case of athletes who have high-risk income that comes in unpredictable clumps. Take this scenario:You get $12M in cash for signing bonus+paycheck. Investment adviser says, "hey, real estate is great, it's a little risky right now but it's even more risky to be on the sidelines. Let's get into a bunch of real estate with conservative 80% loans; we'll spend $10M, which leaves you with $2M spending money, and you can buy $50M in property. If that property goes up 10%, you've made a 50% profit on your leveraged investment, plus you'll clear $1M/year in rents after property upkeep." Fairly typical investment advice.Now the market tanks and your properties lose 30% of their value; they're now worth $35M and you're paying mortgage on $40M of assets. Businesses go under and your vacancy rate climbs to 20%, so now you're losing money on the upkeep. You get cut and now you're playing for backup money.This is probably fairly close to the actual scenario. It's worse if you leveraged yourself more at the start (using $10M to buy $100M of property, now worth $70M). Note that if you took the same strategy in 1996--if you were Jeff Blake, say--that $10M investment would have been worth $100M or more in 2006. So it's not that the strategy is stupid, it's that your timing was bad. Maybe that's predictable, but as I said, lots of supposedly smart people got it wrong.

 

[TommyGilmore]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

He is set for life.But he was greedy and he wanted even more money. So he invested in a pyramid scheme (aka real estate) and then decided to bail when the going got tough.

Brunell will be just fine financially. It's the people who bought into his scheme who are going to lose everything.

 

[CalBear]

Brunell will be just fine financially. It's the people who bought into his scheme who are going to lose everything.

Who are you talking about? CNL Bank?

 

[Brothers Mayhem]

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.

Lots of people whose educational background and sole job is to work with interest rates, margins, etc., lost their shirts in real estate. Plenty of previously-respected financial analysts were telling everyone to buy real estate in 2006-2007, so it's not like he was investing in tulips or baseball cards. Certainly no one running an investment seminar would have given the advice to stay away from real estate.

You seem hell-bent on making this the markets fault and not Brunell's. Yet, other pro athletes, many with much smaller contracts and many with much larger contracts, managed to avoid chapter 11 and still have their shirt on their back. Brunell the only one that bought real estate ???

 

[CalBear]

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.

Lots of people whose educational background and sole job is to work with interest rates, margins, etc., lost their shirts in real estate. Plenty of previously-respected financial analysts were telling everyone to buy real estate in 2006-2007, so it's not like he was investing in tulips or baseball cards. Certainly no one running an investment seminar would have given the advice to stay away from real estate.

You seem hell-bent on making this the markets fault and not Brunell's. Yet, other pro athletes, many with much smaller contracts and many with much larger contracts, managed to avoid chapter 11 and still have their shirt on their back. Brunell the only one that bought real estate ???

I'm not saying it's the market's "fault"; I'm saying Brunell doesn't seem to have done anything unreasonable. Lots of reasonable people lose money on investments.

 

[baconisgood]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

These guys are magnets for schiesters. They make a ton of money when they are young and have no experience handling it- it is kind of funny when they go broke fbut they probably are much better off % wise than lottery winners ect who fall into millions- many of them go broke.

 

[baconisgood]

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.

Lots of people whose educational background and sole job is to work with interest rates, margins, etc., lost their shirts in real estate. Plenty of previously-respected financial analysts were telling everyone to buy real estate in 2006-2007, so it's not like he was investing in tulips or baseball cards. Certainly no one running an investment seminar would have given the advice to stay away from real estate.

You seem hell-bent on making this the markets fault and not Brunell's. Yet, other pro athletes, many with much smaller contracts and many with much larger contracts, managed to avoid chapter 11 and still have their shirt on their back. Brunell the only one that bought real estate ???

I'm not saying it's the market's "fault"; I'm saying Brunell doesn't seem to have done anything unreasonable. Lots of reasonable people lose money on investments.

Losing money on an investment (or several) is still very different that losing more money than you have.

 

[CalBear]

Losing money on an investment (or several) is still very different that losing more money than you have.

Tell that to Lehman Brothers.

 

[massraider]

Geez, the guy was betting on real estate in Florida and Michigan. I wonder how much BP stock the guy owns.

 

[Sweet Love]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

I just read an article recently, cannot remember where or which team (thought it was the Falcons), about a team holding a seminar on personal finance for their players. I remember thinking it was a great idea, and teams should do it all the time, and wondered why they hadn't done it before. There was a blurb in the article that teams had tried it before, but there was always a bad turnout. It's a shame.

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.This comment may not necessarily apply to Brunell or any QB for that matter (As I believe to play QB in the NFL, you have to have and be able to use a brain) Nor does it apply across the board - but it does apply much greater than it should.

Bernie Kosar went broke too. Intelligence has nothing to do with it. You can be an idiot and be smart with your money.

The reality is, when you make $50+ million over a 15 year period, you do not "invest" in anything. You throw it into super, super, low risk stuff (i.e. treasury strips and the crap gandma used to give you as a kid) and live off the interest...why this is so confusing, I have no idea.

 

[CalBear]

The reality is, when you make $50+ million over a 15 year period, you do not "invest" in anything. You throw it into super, super, low risk stuff (i.e. treasury strips and the crap gandma used to give you as a kid) and live off the interest...why this is so confusing, I have no idea.

Glad you've got it figured out. When did you make your $50 million?

 

[Hastur]

[The reality is, when you make $50+ million over a 15 year period, you do not "invest" in anything. You throw it into super, super, low risk stuff (i.e. treasury strips and the crap gandma used to give you as a kid) and live off the interest...why this is so confusing, I have no idea.

If you're living off interest, you 'invested' in something.

 

[Lake Titicaca]

Where's your God now Mark?

 

[Mr. Retukes]

The reality is, when you make $50+ million over a 15 year period, you do not "invest" in anything. You throw it into super, super, low risk stuff (i.e. treasury strips and the crap gandma used to give you as a kid) and live off the interest...why this is so confusing, I have no idea.

Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.

 

[Montana16]

This kind of thing sickens me. He should be set for life and have generational wealth to provide his kids and future grandchildren. Inexcusable.

I just read an article recently, cannot remember where or which team (thought it was the Falcons), about a team holding a seminar on personal finance for their players. I remember thinking it was a great idea, and teams should do it all the time, and wondered why they hadn't done it before. There was a blurb in the article that teams had tried it before, but there was always a bad turnout. It's a shame.

You can seminar most of them guys to death - only the players who actually got an education would be able to apply the seminar's lessons. Unfortunately, too many of the professional athletes go through life about as smart as they were in the 9th grade. Hard to go from Basket-weaving 101 to the economy, interest rates, margins, etc. Sad.This comment may not necessarily apply to Brunell or any QB for that matter (As I believe to play QB in the NFL, you have to have and be able to use a brain) Nor does it apply across the board - but it does apply much greater than it should.

Bernie Kosar went broke too. Intelligence has nothing to do with it. You can be an idiot and be smart with your money.

The reality is, when you make $50+ million over a 15 year period, you do not "invest" in anything. You throw it into super, super, low risk stuff (i.e. treasury strips and the crap gandma used to give you as a kid) and live off the interest...why this is so confusing, I have no idea.

I agree, give me a few million dollars and id throw it into a bank and live off the interest. If I could get even 4 or 5 percent id live like a king.

 

[Mister CIA]

Mark Brunell, his new financial advisor, and George Clooney

 

[massraider]

Where's your God now Mark?

Mark is very religious.

 

[Don Quixote]

I agree, give me a few million dollars and id throw it into a bank and live off the interest. If I could get even 4 or 5 percent id live like a king.

FDIC limit is $100k. So if it was one of the banks that failed in 2008/2009, you'd be in pretty bad shape now.

 

[baconisgood]

I agree, give me a few million dollars and id throw it into a bank and live off the interest. If I could get even 4 or 5 percent id live like a king.

FDIC limit is $100k. So if it was one of the banks that failed in 2008/2009, you'd be in pretty bad shape now.

There are services that will take your 10 million and split it up among 100 banks to get full coverage.

 

[Don Quixote]

I agree, give me a few million dollars and id throw it into a bank and live off the interest. If I could get even 4 or 5 percent id live like a king.

FDIC limit is $100k. So if it was one of the banks that failed in 2008/2009, you'd be in pretty bad shape now.

There are services that will take your 10 million and split it up among 100 banks to get full coverage.

I'm sure there are, but poster I was responding to said "a bank."

 

[Lake Titicaca]

Where's your God now Mark?

Mark is very religious.

And?

 

[H.K.]

I agree, give me a few million dollars and id throw it into a bank and live off the interest. If I could get even 4 or 5 percent id live like a king.

FDIC limit is $100k. So if it was one of the banks that failed in 2008/2009, you'd be in pretty bad shape now.

There are services that will take your 10 million and split it up among 100 banks to get full coverage.

I'm sure there are, but poster I was responding to said "a bank."

1) The FDIC limit is $250K, not $100k. The insurance limit was slated to roll back to $100,000 Jan. 1, 2010, but Congress extended deadline through Dec. 31, 2013. As things stand now, the standard insurance coverage will revert to $100,000 per depositor Jan. 1, 2014. (Not to mention the FDIC Transaction Account Guarantee Program provides full deposit insurance coverage for all funds in non-interest-bearing transaction deposit accounts for participating institutions through June 30, 2010.)

Also, the FDIC provides separate insurance coverage for deposit accounts held in different categories of ownership. You may qualify for more than $250,000 in coverage at one insured bank if you own deposit accounts in different categories (i.e.- joint accounts, retirement, etc.).

2) CDARS are covered up to $50 Million in FDIC insurance. They are opened and managed by the customer dealing with just one aka "a" bank.

 

[Riffraff]

Where's your God now Mark?

Mark is very religious.

And?

And if he tithed his 10%, the church has some really nice pews and alters for Brunell to pray for help from. Many would consider this a very bad investment as well.

 

[massraider]

Where's your God now Mark?

Mark is very religious.

And?

And nothing, for cripes sake.

 

[Enraged Nerfball]

Where's your God now Mark?

Really?

 

[dickey moe]

Where's your God now Mark?

What a slimeball post.