Sharks

Report: Sharks' Kane, $27 million in debt, files for bankruptcy

Sharks
Sharks' Evander Kane

Sharks forward Evander Kane reportedly filed for Chapter 7 bankruptcy in a petition in federal bankruptcy court in San Jose on Saturday, listing nearly $27 million in debt.

The Athletic's Daniel Kaplan reported Monday that Kane is facing six active "lawsuits, court actions and administrative proceedings with lenders," including a lawsuit -- first reported by San Jose Hockey Now's Sheng Peng on Saturday -- filed last week by Centennial Bank in federal court in Florida seeking $8.3 million from Kane and the Sharks.

Kane, according to Kaplan, listed liabilities of $26.8 million and assets of $10.2 million in the filing. He listed seven dependents living with him, ranging from his six-month-old daughter to his 77-year-old grandmother, $1.5 million in gambling losses over the last 12 months and a $1.88 million valuation of a counterclaim against Rachel Keuchele. Keuchele alleged battery in a lawsuit filed in Erie County Supreme Court in New York.

According to the filing, Kane's monthly income is minus-$91,131.13. Kaplan reported that Kane's filing warned his creditors that he could opt out of the season.

“Debtor may terminate his contract and he may opt out of the season, as allowed under current rules, because of health concerns given the recent birth of his first child,” the bankruptcy petition said. “Should he terminate his contract or opt out at a point in the season, Debtor will not receive his salary.”

Kane, 29, didn't opt out of the NHL season prior to the Christmas Eve deadline. He has practiced at the Sharks' training camp in Scottsdale, Ariz.

 
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The Sharks signed Kane to a seven-year, $49 million contract in 2018. Kane, according to Cap Friendly, earned $3 million in signing bonuses and will earn $3 million in base salary. That's the lowest base salary of any year of his contract, and Kane must pay 20 percent in escrow on that salary as a result of the collective bargaining agreement the NHL and the NHL Players Association signed last summer.

Kane's filing, according to Kaplan, included a portion mentioning that "even if all scheduled games are played, his salary will be adjusted based upon the reduced number of games." That contradicts reporting last month from Sportsnet's Elliotte Friedman about the NHL and NHLPA agreeing on a 56-game season. Friedman reported Dec. 18 that salaries wouldn't be prorated.