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FORMER NHLER SEAN AVERY'S FINANCIAL ADVICE COULD HAVE HELPED EVANDER KANE AVOID BANKRUPTCY

The story of Evander Kane filing for bankruptcy is a cautionary tale of why it is important to monitor your finances closely and to never live above your means - even if you're a millionaire.

In 2015, former NHLer Sean Avery wrote an article for The Players' Tribune, where he outlined just how misleading the dollar figure of an NHL contract can be and gave some valuable advice as to why it's of the utmost importance to manage your money.

While the two stories are not directly linked, it's easy to see now how Avery's advice could have helped Kane in his current situation - first and foremost, by pointing out that it's best not to get too ahead of himself when it comes to his spending after he signed his 7-year, $49M deal with the Sharks in 2018. One of Avery's comments, in specific, really sheds a light on how dramatically different a player's salary is after escrow, taxes and expenses.

"Consider some misleading facts: The average NHL career is five-and-a-half years long and the average NHL salary is $2.4 million. So the average guy should have a total of $13.2 million at the end of his playing days. That's more than enough to live happily ever after.

In truth, it isn't. Taxes take about half (if you take no evasive tax action), agent and management fees take 25 percent, and the NHL snatches another 20 percent to put in escrow, which the owners balance out at the end of the season. Sometimes, they use the players' cash to help small-market teams. Sometimes we'd get a refund. But for The New Avery Rule purposes, consider it gone. So really, that $13.2 million becomes $660,000 — which is still a lot of money, but you have to make that last for the next 50 or 60 years because if you have a five-and-a-half year NHL career, you've retired at age 25 or 26."

Granted, there's a very large gap between Kane's estimated $53M in career earnings and the average player's $13.2M in career earnings, but what that really goes to show you is how fast everything can disappear if you don't manage your money wisely.



In Kane's case, his large list of dependents, his three luxurious homes, the 6 lawsuits against him, and his gambling debts have really painted him into a corner. As awful as this whole bankruptcy ordeal is for Kane and his family right now, the only hope is that the gritty forward learns from this and, from here on out, takes better care of his finances.

At just 29 years old, Kane has plenty of time to rebound from this - especially when you consider that he is set to earn $29M throughout the remainder of his current deal. ($3M has already been paid out as a signing bonus for this season, otherwise it would have been $32M).

Source of the Sean Avery article: Businessjournalism.org
MIKE ARMENTI
JANUARY 12, 2021  (13H43)