Evander Kane, Sharks notify bankruptcy court that they may void his NHL contract

This is certainly a big development in the ongoing bankruptcy case of Evander Kane of the San Jose Sharks. According to The Athletic, both Kane and San Jose have informed the court that they may void his contract. Kane signed a seven-year, $49 million deal with the Sharks back in 2018. It still has four years left on it after this season, with a value of $29 million.

Kane filed for bankruptcy back in January, listing debts of $26.8 million and assets of just under $11 million. As for why he would look to void his contract when he owes this much money, it's unclear at this point, but The Athletic states a source believes it may be a move to deprive creditors of a means of collecting money from him. As for why the team would sign on to the statement, it may be a way for San Jose to dump a major contract after ongoing financial struggles that all NHL teams are facing due to the COVID-19 pandemic.

The motion from Kane and the Sharks sought to extend the deadline for the possible rejection of his contract from this week to June 7th, giving both parties an extra 90 days. The judge in the case has agreed to that extension.

Whether this is an option either side is actually considering or whether it's all part of the court case is anyone's guess at this point. The usually outspoken Kane has not said a word publicly about his bankruptcy filing.

One of the organizations that Kane allegedly owes money to, Zions Bancorp, recently filed papers in the case saying "Kane has a serious gambling problem. Kane gambles heavily and makes poor, self-centered financial decisions. He ought not be allowed to continue handling his substantial salary and bonuses, or be allowed to continue gambling and speculating with his income instead of committing it to his creditors."

Zions Bancorp is asking the court to change Kane's bankruptcy filing from chapter 7, which is for individuals, to chapter 11, which is for businesses. This would allow the $29 million remaining on Kane's Sharks contract to be available to creditors like Zion, which is owed $4.25 million according to the filing. Zions argues Kane's losses are business related. It also revealed it is considering a lawsuit against the 29-year-old.

Despite these ongoing issues, Kane isn't having a bad season. He has nine goals and 20 points in 23 games so far in 2020-21. He is second on the team in goals and points.

Update:

Source: The Athletic

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