Mark Brunell Lists $24 Million in Liability, Files for Bankruptcy

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http://www.firstcoastnews.com/sports...storyid=157839

JACKSONVILLE, Fla. -- Former Jaguars star Mark Brunell filed for bankruptcy Friday, listing nearly $25 million in liability and $5.5 million in assets.

According to Brunell's bankruptcy filing that First Coast News has obtained, the nature of the debts is marked as primarily business debts. Brunell's assets are estimated to be between $1 to $10 million opposed to his estimated liabilities at $10 to $50 million, according to the paperwork. The debt is forcing him to give up his Whataburger restaurants and restructure his finances.

Earlier this month, Brunell, along with two of his former teammates Todd Fordham and Joel Smeenge faced multiple loan defaults in connection to their company, Champion LLC.

"He realized this was the only choice that he had as a result of the guarantees that he signed not really focusing on what the consequences could be," Michael Freed, Brunell's lawyer, said Friday morning.

Meanwhile, he no longer owns the 11 Whataburger fast food restaurants in Florida and Georgia. He has operated them for years and frequently appeared in promotional campaigns.

"He is not involved with the restaurants any longer," said Whataburger spokesperson Natalie Silva. "The transfer of operations was complete as of June 24."

Former Jaguars star Joel Smeenge has already filed for bankruptcy.

In a statement released Thursday Brunell writes:

This week with much regret, I will take the step of filing with the court to have my personal finances reorganized under Chapter 11 bankruptcy code. After much deliberation, and many years of shouldering enormous amount of debt resulting from passive real estate investments, it has become clear that this is the only viable course of action.

I have been a silent partner of a group of friends engaged in real estate development with investments in Florida and elsewhere. The timing of the group's real estate acquisitions at the height of the real estate market, in hindsight, clearly was not good, particularly given the subsequent collapse of the economy. I have personally made the payments on these loans in good faith for several years as we worked hard to find buyers, partners, or refinancing. In the end we couldn't and I'm no longer able to shoulder this burden.

Struggles in tough times like these are character builders and I have learned, and am presently learning, many lessons through this process. It has reaffirmed what is most important to me - my faith, my family and friendships.

My family and I will continue our tradition of trying to make a positive difference in our community, especially with initiatives serving children. We plan to continue this commitment and celebrate our many blessings each day.

Brunell won the Super Bowl with the New Orleans Saints earlier this year. He's expected to sign a contract with the New York Jets soon for the backup quarterback slot.

"When you see someone like Mark Brunell file bankruptcy, it really drives home the incredible impact the deflated economy has had on everyone," said Jacksonville Bankruptcy Attorney Chip Parker.

Parker said filing Chapter 11 could actually benefit Brunell with lower interest repayment over an extended timeframe. His creditors could also receive more in bankrupty court than they would if property was liquidated.

"Under Chapter 11, Mr. Brunell will present a plan of reorganization to his creditors and provide for his creditors a better alternative with a higher payout for creditors," said Parker.

Last February, we reported on the first lawsuit, involving CNL Bank based in Jacksonville. The bank accused the NFL stars of failing to make payments on a $2.2 million loan. Freed says that case was recently settled.

Up in Michigan, a judge has ruled against Brunell and his former teammates.

A bank based in Grand Rapids, Mich., Select Bank, accuses them of defaulting on a $1.1 million loan. Michael Freed, who represents Brunell and all the other defendants in the lawsuit, says there is no question that the company (Champion LLC) did not remain current on the loan.

"This was simply something that's a result of a bad economy, unprecedented economy that's affecting a lot of people. And he intends to be in a position to do a lot of good things going forward," Freed said.
Select Bank's lawyer said the failed business involved real estate projects in Traverse City and Grand Rapids.

Freed said there are other loan defaults involving the players, but wouldn't reveal their locations. Freed said in the CNL Bank and Select Bank cases, they're working with the banks to liquidate the property.

Another local business just filed suit. The Esplanade at Town Center Condo Association filed a lien totaling about $2,000. It was for unpaid dues.

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