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McCarty bankrupt

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From the Detroit News:

McCarty's home headed to foreclosure sale

Paul Egan / The Detroit News

Darren McCarty's half-million-dollar home in Farmington Hills will be sold through a bank foreclosure as the former Detroit Red Wings star tries to pay off more than $6 million in personal debts that have forced him into bankruptcy, his lawyer said today.

McCarty filed for Chapter 7 bankruptcy last November, owing substantial debts to creditors ranging from banks and credit card companies to casinos in Detroit and Las Vegas.

McCarty's Southfield lawyer, Martin Fried, said it is difficult to say how many cents on the dollar McCarty's creditors will receive. But payments will be made, Fried said.

"His financial problems are that he had a really serious reduction in his income," Fried said.

McCarty went from an annual salary of $2.1 million with the Red Wings to a greatly reduced income during the NHL lockout, to a current annual salary of $850,000 with the Calgary Flames, Fried said. McCarty also got divorced and is making substantial payments to support his ex-wife and four children, he said.

Despite his financial problems, "the times I've met with him he seemed kind of upbeat," Fried said. "This isn't like the end of the world."

McCarty's sister has been looking after his home on Eagle Trace in Farmington Hills since McCarty moved to Calgary, Fried said. The home, valued at $591,780 in bankruptcy filings, will be sold through a bank foreclosure, he said.

McCarty was released by the Wings last summer after 11 seasons and signed by the Flames.

Although his debts include $100,000 claimed by the Bellagio casino in Las Vegas, $60,000 claimed by the Palms Casino in Las Vegas and $25,000 claimed by the MotorCity Casino in Detroit, Fried said McCarty's financial problems are not related to a gambling problem.

McCarty could not immediately be reached for comment.

His bankruptcy filings in Detroit listed total debts of $6.25 million and total assets of $1.95 million.

You can reach Paul Egan at (313) 222-2069 or pegan@detnews.com.

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Although his debts include $100,000 claimed by the Bellagio casino in Las Vegas, $60,000 claimed by the Palms Casino in Las Vegas and $25,000 claimed by the MotorCity Casino in Detroit, Fried said McCarty's financial problems are not related to a gambling problem.

Sure, I'm buying that one.

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From the Detroit News:

Although his debts include $100,000 claimed by the Bellagio casino in Las Vegas, $60,000 claimed by the Palms Casino in Las Vegas and $25,000 claimed by the MotorCity Casino in Detroit, Fried said McCarty's financial problems are not related to a gambling problem.

McCarty could not immediately be reached for comment.

His bankruptcy filings in Detroit listed total debts of $6.25 million and total assets of $1.95 million.

You can reach Paul Egan at (313) 222-2069 or pegan@detnews.com.

Of course his debts have nothing to do with gambling, pro athletes never gamble and if they do they never become addicted to it. I'm sure the $185,000 he owes to the casinos are all from extra trips to the buffet.

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if those numbers are correct, not quite 3% of his debt is from gambling. Granted, if he's that much in debt he shouldn't be betting at all, but it doesn't look like that's what caused his financial problems.

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if those numbers are correct, not quite 3% of his debt is from gambling. Granted, if he's that much in debt he shouldn't be betting at all, but it doesn't look like that's what caused his financial problems.

That is not an accurate statement. That 3% is what he currently owes to the casinos. You know he's lost a lot more than that running up credit card debts from gambling.

How do you owe that much to casinos and not have a gambling problem? If a lawyer is going to lie, come up with something creative.

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so where did the rest of the millions he's earned go? paying the guys in Grinder? what is not being said is that he either has a massive gambling problem, has made multiple foolish investments, or his wife has really, really expensive taste...

he's made enough millions that even discounting taxes, agent's fees, the house, etc, he should be quite capable of living solely on the interest.

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Is 6 million that much debt when you have 2 million in assets and make 850k per year?

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<sniff> <sniff>

what coke problem?

Just sayin'.

I've heard rumors from limo drivers.

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<sniff> <sniff>

what coke problem?

Just sayin'.

I've heard rumors from limo drivers.

i wouldn't be suprised. not in the least.

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"His financial problems are that he had a really serious reduction in his income," Fried said.

Welcome to reality !!!! Almost every American has gone through this recently. He should be glad he actually has a "job" there is a large number of unemployed people right now and I dont think he will get any sympathy from them.

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Welcome to reality !!!! Almost every American has gone through this recently. He should be glad he actually has a "job" there is a large number of unemployed people right now and I dont think he will get any sympathy from them.

Not only that. but we are talking about 850K - a reduction to 850K. For 850K I could buy a very nice house in a very nice area in cash and never have to worry about a place to live the rest of my life. And with the other 600K I could practically retire now - at 41.

Also, a hockey player's livelyhood is a very small percentage of his life (in years), so it would be smart to live well below your means in order to have a strong fincancial future.

Darren is smarter than this. It has to be an addiction problem of some kind, but that's still no excuse.

I know a former Detroit Lion (no names here). He was a backup player. Didnt play much. He made about 400K and had 4 expensive cars and a huge house. His career lasted 5 years. He lives with his mom now. He would have lived a reasonable middle-class lifestyle he would still be living well - into his 60's. It's just idiotic. Dude - you are not Barry Sanders - stop trying to live like him.

I also know a fellow radio DJ (I worked with him). He went on to Dallas and cut a rap/rock record called "Country Girl". He then got a HUGE publishing deal. That money hasn't been touched because he continues to live off of his radio salary. And he will do that until he decides he doesn't want to do radio anymore. He'll probably retire in his early 40's and he'll never have to do what he doesn't want to just for the paycheck. He's a smart kid.

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Not only that. but we are talking about 850K - a reduction to 850K. For 850K I could buy a very nice house in a very nice area in cash and never have to worry about a place to live the rest of my life. And with the other 600K I could practically retire now - at 41.

Yeah but after taxes it's only about $400K :)

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Not only that. but we are talking about 850K - a reduction to 850K. For 850K I could buy a very nice house in a very nice area in cash and never have to worry about a place to live the rest of my life. And with the other 600K I could practically retire now - at 41.

Also, a hockey player's livelyhood is a very small percentage of his life (in years), so it would be smart to live well below your means in order to have a strong fincancial future.

Darren is smarter than this. It has to be an addiction problem of some kind, but that's still no excuse.

I know a former Detroit Lion (no names here). He was a backup player. Didnt play much. He made about 400K and had 4 expensive cars and a huge house. His career lasted 5 years. He lives with his mom now. He would have lived a reasonable middle-class lifestyle he would still be living well - into his 60's. It's just idiotic. Dude - you are not Barry Sanders - stop trying to live like him.

I also know a fellow radio DJ (I worked with him). He went on to Dallas and cut a rap/rock record called "Country Girl". He then got a HUGE publishing deal. That money hasn't been touched because he continues to live off of his radio salary. And he will do that until he decides he doesn't want to do radio anymore. He'll probably retire in his early 40's and he'll never have to do what he doesn't want to just for the paycheck. He's a smart kid.

Forty percent of that 850,000 goes to the taxman. Takes him to 510,000. Take 20% of the gross for the agent and the lawyers, now we're at $340,000. Take off your $250,000 for the dream house, and you have $90,000 -- net. If you can live off of 9,000 a year, you can get by on the interest. But you're looking at $4000 to $6000 a year for property taxes. Good luck.

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I thought agents get 4%. But your point still stands. Don't forget the Detroit city tax. What about Canada? Do the players have to pay any Canadian tax for games they play up in the Great White North?

It's easy to go through that money, especially when you factor in buying a house/car for your parents which I'm sure is the first thing many of these guys do. Then you take care of your friends. You don't have to necessarily be out all the time to go through it.

Let's not forget that Darren may have spent a lot of money helping his dad through his illness.

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You guys are thinking about it the wrong way. He was living with a budget of 2.5 million. He didnt work for a year and made 195k. Now his contract is "only" 850k. Still thats a long way from 2.5 million. Now he has to pay back money that was borrowed with a 2.5 million income in mind and hes making 850k. He got bought out for a little under 600k and his wife got 75% of that. Looks like she had an outstanding lawyer and Darren got screwed. Probably more than just that 75% too.

Then you add his hard partying and gambling to that. Darrens not totally off the deepend there yet. Hes not Dwight Gooden, but those extra debts along with a couple bad investments and your bankrupt.

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Let's not forget that Darren may have spent a lot of money helping his dad through his illness.

Sorry for his dad's sickness and death. But what does his dad have to do with owing money to Detroit and Las Vegas Casinos?

I do not fell sorry for hime after his attorney said "he had a major deduction in salary" maybe he needs to survive off of unemployment like very other person.

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Uh... I didn't say it had anything to do with it. The discussion is how you can go through a lot of money in a short period of time.

He lost 60% of his income and he's also paying quite a bit in child support. That's a big adjustment to make. I don't think the bankruptcy means he's broke, it's just a strategic thing.

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You guys are thinking about it the wrong way. He was living with a budget of 2.5 million. He didnt work for a year and made 195k. Now his contract is "only" 850k. Still thats a long way from 2.5 million. Now he has to pay back money that was borrowed with a 2.5 million income in mind and hes making 850k. He got bought out for a little under 600k and his wife got 75% of that. Looks like she had an outstanding lawyer and Darren got screwed. Probably more than just that 75% too.

Then you add his hard partying and gambling to that. Darrens not totally off the deepend there yet. Hes not Dwight Gooden, but those extra debts along with a couple bad investments and your bankrupt.

That's the way I see it too. Darren is making a combined $1 million in two years, when he originally signed a 4 year deal in 2003 to make $2.5 a season. He was expecting to make a hell of a lot more money than an average of $500,000 a year for two years. I don't care who you are, anyone who get's his salary cut by 4/5 is going to have financial problems. I wouldn't be surprised if we hear about more Hockey players having to declare bankruptcy. Many players got their salaries cut by 1/2 or more.

I know it's easy to say he should have done this, he should have done that, and how easy it is to live on $850,000, when most of us make under $100,000, but people live based on their income. A lot of famous people indulge because they have everything thrown at them, i.e. Money, Fame, Booze, Drugs, Girls, etc.. I wonder how many of us given the chance at being famous can stay clean?

I read on mlive that he originally filed in October 2005, but it's become public in April 2006. I wish Darren all the best. He was one of my favorite Wings, put his body on the line every game, and gave us some great memories.

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I still have a problem with the fact he's going bankrupt, financially I can see him in a tight situation, but I thought the new laws were going to make it tougher to go bankrupt. I guess i'm not sure how much the wife and kids take, but i'm sure he could partition the court due to his changed income to get that more in line if needed.

I understand that 850k after taxes and everything isn't as much as it sounds, but they say a person can afford 2.5 times their salary on a home and it's very common to see lenders give 3 times. That's 2.55 million in debt which would put him in the same position as us for the most part, actually a little less as a car payment to me is a decent size chunk compared to my salary. Even if he's driving a H1 at 100k that's only 1/8 of his salary. It's not uncommon for people to drive cars that are 1/3 - 1/2 of their annual pay.

Now I understand that he's unlikely to be making this salary in 10 years, but he also is probably making money outside of his contract as well. Local tv advertisements and such and i'm sure he's still getting money from this area and he's not even playing here anymore.

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I can certainly understand spending the money you've made but he's also $6 million in debt. With a house worth $500K that appears to be paid for, where does he owe this other money to?

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Didn't he get divorced and didn't his wife get something like $400,000 of the $500,000 the Wings paid him when he left?

No wonder he's bankrupt, he got married. That'll do it.

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I can certainly understand spending the money you've made but he's also $6 million in debt. With a house worth $500K that appears to be paid for, where does he owe this other money to?

Complete breakdown of it all here http://www.freep.com/apps/pbcs.dll/article?AID=/20060412/NEWS05/604120385/1007

DMA Holdings, Portage...$2 million

Huntington Nat'l. Bank, Bloom. Hills...$1.5 million

John Andrews, Brighton...$649,400

John Matouk, Berkley...$234,288

Bellagio Casino, Las Vegas...$100,000

Palms Casino, Las Vegas...$60,000

MBNA America...$35,322

Jeff Beckett, Troy...$30,000

Law firm of John Schaefer, Birmingham...$28,000

MotorCity Casino, Detroit...$25,000

Chase Card Services...$24, 415

American Express...$18,774

Chase Cardmember Services...$13,538.98

Law firm of Seyburn Kahn, Southfield...$8,270

Capital One Services, St. Louis...$4,940

J.D. Candler Roofing, Detroit...$3,177

US Bank, St. Louis...$2,639

Exxon Mobil...$1,089

American Express...$902

DirecTV, Illinois...$537

Blue Dot Services of Michigan...$386

SBC, Saginaw...$287

Oakland County Drain Commission...$282

DTE Energy, Detroit...$264

Bright House Networks, Livonia...$179

Consumers Energy, Lansing...$68

Total of this sampling ...$4,741,757.98

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He got a taste of what life is really about. Yeah he had it so rough didnt he... Why doesnt he go apply for unemployment and receive $724 every two weeks.

Yeah I wonder as well about the new bankruptcy laws. Depending when he filled I guess. What a shocker... file for bankruptcy and walk away from the problem he put himself into.

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Looks to me like his 'friends' talked him into some poor investments, his wife saw the money tree getting a bit thin and split before the career ended, and he actually believed all the butt-kissers when they told him his band was any good. I love the guy for what he did in the Red Winged wheel sweater, but his life outside the rink is not really our concern. I found out real quick that when you are down on your luck, your friends and family take a few steps back. When the dust settles and he gets humbled a bit, I'm sure the Wings will have a special job waiting for him somewhere in the organization.

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You might be on to something with what happened.

He could also have a bit of the Mickey mantle complex where he's living it all up for today. He figures when he's 38 and out of hockey that somebody local will hook him up with a nice job somewhere.

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