Michael Vick has taken another blind side hit - and an expensive one, at that.
Already facing prison time, the disgraced quarterback lost the first round in his financial battle with the Atlanta Falcons when an arbitrator ruled Tuesday that Michael Vick must repay $20 million in bonuses he got from the team while secretly bankrolling a gruesome dogfighting ring.
The case is far from over. The NFL players' union said it will appeal the ruling by Stephen B. Burbank, a University of Pennsylvania law professor.
The Falcons argued that Vick, who pleaded guilty to federal charges for his role in the long-running dogfighting operation, knew he was in violation of the contract when he signed a 10-year, $130 million deal in December 2004.
The team said Michael Vick used money from that contract to fund his illicit ring and sought the repayment of $19,970,000 he was paid over three years.
"We are certainly pleased with today's ruling," the Falcons said in a statement. "It is the first step in a process that our club has undertaken in an attempt to recoup significant salary cap space that will allow us to continue to build our team."
In a very technical ruling, Burbank said the Falcons are entitled to $3.75 million of the $7.5 million bonus that Michael Vick was paid after signing the contract in 2004, $13.5 million of the $22.5 million roster, reporting and playing bonuses he was paid in 2005 and 2006, and $2.72 million of the $7 million roster, reporting and playing bonus that he received this year.Burbank took a different tact than his ruling last year in a bonus dispute involving former Denver Broncos receiver Ashley Lelie.
In that case, the arbitrator ordered the Denver Broncos to repay $220,000 to Lelie, who reportedly had to give up about $1 million in fines, lost bonuses and a prorated portion of his signing bonus to get out of the final year of his Denver contract after a dispute over playing time.
Giving teams more financial leeway than he did in the Lelie case, Burbank said Falcons were entitled to recover bonuses for future services that Vick won't be able to earn because of his dogfighting admission.
He was suspended indefinitely without pay by the NFL, in addition to losing millions in lucrative endorsement deals.
If upheld, the decision would be a further strain on Vick's finances. He already has been sued by an Indiana bank that claims he failed to repay at least $2 million in loans for a car rental business, and by a Canadian bank that claims he owes more than $2.3 million for real estate investments.
Of course, Michael Vick has more troubling issues to deal with than cash-flow problems. He'll be sentenced December 10 in the federal dogfighting case and is expected to get at least a year in prison.
Michael Vick is also facing additional charges of felony dogfighting via the State of Virginia, which carry possible sentences of up to five years each.
In addition, Vick tested positive for marijuana last month, drawing the ire of the judge who will be sentencing him in December.
U.S. District Judge Henry Hudson ordered Vick confined to his Virginia home between 10 p.m. and 6 a.m. with electronic monitoring.
He also must submit to random drug testing.
The quarterback's stunning downfall began in April when authorities conducting a drug investigation of Vick's cousin raided property Vick owns in Surry County, Va. Officers seized dozens of dogs and equipment associated with dogfighting.
Michael Vick initially denied any knowledge of the enterprise, then pledged after he was charged that he would fight to clear his name.
After his three co-defendants pleaded guilty, Vick followed suit in late August and admitted to bankrolling the enterprise and participating in the killing of dogs.
In his only public comment since the admission, Michael Vick took responsibility for his actions and asked for forgiveness:
"I offer my deepest apologies to everybody out there in the world who was affected by this whole situation," he said, "and if I'm more disappointed with myself than anything it's because of all the young people, young kids that I let down, who look at Michael Vick as a role model."