San Jose Sharks forward Evander Kane, who filed for bankruptcy in January, has been sued by one of his creditors for $15 million.
In its lawsuit filed this week in the Northern District of California’s federal bankruptcy court, Professional Bank, which says it loaned Kane $1.5 million in March 2019, claims it is entitled to “punitive and exemplary damages based on the fraud of Defendant Kane … ten times theamount of the compensatory damages.”
Professional Bank’s complaint alleges that the Sharks forward made promises on how he would repay the loan that he did not fulfill, and that he misrepresented his financial circumstances and financial condition — overstating his assets and understating his liabilities.
“It appears likely from conduct and circumstances since March of 2019 that Kane intended to declare bankruptcy and intended to take the position that he was not going to pay Professional Bank and Kane’s other creditors,” the claim says.
“It appears likely that the initial planning of the bankruptcy was believed to be already in process and in progress when Kane requested the loan from Professional Bank. At around that same time, Kane was also borrowing enormous amounts of money from other banks including Centennial Bank, Zions Bancorporation, and South River Capital. Kane was also incurring enormous amounts of debt owed to other creditors.
“By all appearances, the plan back then was that these amounts were never going to be paid or paid back.”
Kane’s lawyer, Stephen D. Finestone, wrote in an email that, “Mr. Kane has no comment about the lawsuit and will deal with it in the Court.”
In his filing for Chapter 7 bankruptcy in January, Kane listed assets of $10.2 million and liabilities of $26.8 million. Kane, 29, has earned in excess of $55 million during his 12-year NHL career, according to spotrac.
In his bankruptcy filing, Kane listed $1.5 million in gambling losses and having seven dependents, all family members. The filing also listed six pending legal actions. Documents also showed that he had over $16 million in unpaid loans, among other debts.
In Chapter 7 bankruptcy, the court places an automatic temporary stay on an individual’s debts, stops creditors from collecting payments, and prevents foreclosures on homes, among other things. Forty-seven creditors were listed in Kane’s bankruptcy petition.
Zions Bancorporation, one of Kane’s major creditors, was seeking to convert his case from a Chapter 7 bankruptcy to Chapter 11, which would make the money that is still owed to Kane available to creditors. That request, which was joined by other lenders, was denied by a Northern California bankruptcy judge last month, but the decision is being appealed.
Kane is in the third year of a seven-year, $49 million contract he signed with the Sharks in May 2018. Over the next four seasons, according to contract details on CapFriendly, Kane is due to make $26 million in salary, including bonuses. He has a salary of $3 million for this season, although NHL players are deferring 10 percent of their salary into future years and putting another 20 percent into escrow.
There was speculation in March that Kane would void the final four years of his contract to deprive creditors of their means to recoup money owed to them. Sharks general manager Doug Wilson said at the time that the team was committed to fulfilling Kane’s contract.
Even as his troublesome financial issues have come to light, Kane has been having the most productive season of his NHL career this year.
Kane enters Wednesday’s game with the Colorado Avalanche with 45 points, the most he ever has had after 52 games.
“He’s probably our best player night in and night out,” Sharks coach Bob Boughner said Wednesday morning. “I haven’t had one issue off the ice with Evander. We know that he’s going through stuff in his personal life, but his ability to come here and focus and get the job done and be one of our best players every night is pretty remarkable.
“I have a lot of good things to say about Evander not only as a player, but as a teammate this year. He’s come full circle.”
Kane has a team-high 22 goals this season, marking the sixth straight year he’s scored at least 20 goals. He recorded his 500th career point Saturday, assisting on Logan Couture’s goal in a 4-3 Sharks loss to the Avalanche.
With their 5-4 overtime loss to the Avalanche on Monday, the Sharks were officially eliminated from playoff contention. After Wednesday, the Sharks have three games remaining.
