NFL refused to allow Caleb Williams tax moves

[Saxum]

https://www.msn.com/en-us/sports/nfl/nfl-refused-to-allow-caleb-williams-tax-moves/ar-BB1qaJFO
 

Quote

 

Chicago Bears rookie star (He is already a star?) quarterback Caleb Williams finally signed his rookie contract this week after a long delay. It seems that the delay is a result of the rookie attempting some rather creative tax strategies, but the NFL seems to have shut them down.

 

Ultimately, it seems like those strategies fell through as the NFL refused to allow him to pursue those creative tax strategies. As a result, he will simply have to take his paycheck and pay his taxes just like everyone else. But you can’t fault him for trying.

 

 

He did NOT graduate with CPA or business degrees.

[DaggersEOD]

Good on the kid for trying. Sounds like he had some viable ideas and the NFL just slammed the door shut. 
 

Probably afraid it would work and be copied by others. Wouldn’t be surprised if access to player income tax revenue is a part of the negotiations with state/local government. 
 

But I’m just some random with no special tax knowledge. 🤷‍♂️

Edited July 17 by DaggersEOD
Last line addition

[DaggersEOD]

9 minutes ago, UConn James said:

Guys are still making a bag, but even for the huge deals, you might be surprised at how low a % of a contract is in actual take-home.

And it has to last them the rest of their lives. 

[Orlando Buffalo]

Look at the way that NHL salaries are paid for the no tax states. All the stars on TB are paid the whole salary except for league minimums in signing bonus that is paid out over time. Basically they are paid the exact same amount of.money but keep much more of it. The Josh Salary alone is $4 million a year to state of NY, they would be pissed to lose it.

[DCofNC]

28 minutes ago, DaggersEOD said:

And it has to last them the rest of their lives. 

Oh I feel horrible for him, he’s already made 3x more money in college than the average person will make in their lifetime.  Now he gets another 40M, even if that’s cut in half and he never earns another dime in any other fashion he would be able to take $400k a year for the next 50 years WITHOUT considering interest earnings.   The poor, poor guys. 

23 minutes ago, Orlando Buffalo said:

Look at the way that NHL salaries are paid for the no tax states. All the stars on TB are paid the whole salary except for league minimums in signing bonus that is paid out over time. Basically they are paid the exact same amount of.money but keep much more of it. The Josh Salary alone is $4 million a year to state of NY, they would be pissed to lose it.

And this is why it pays to play on a team where the state has no income tax.  Look at what Josh Jacobs did, deferring his signing bonus and all but the minimum salary until the team completed their move to Las Vegas.  He’s forever my hero, F California.

[Ethan in Cleveland]

Bears were gifted the first overall. They could have kept Fields, traded down and gotten MHJr, and another boat load of picks. They could have let Fields walk and sign Wilson or another vet. 

Williams wasn't even that good at USC. He is going to be a bust.

They screwed up big time 

[K D]

Boo hoo pay your taxes millionaires

[Old Coot]

Tua & Dak are laughing all the way to the bank. FLA & TX have no personal income tax (also Nevada, Washington state and Tennessee)

[MJS]

He sure thinks he is special. Let's see if his play on the field actually justifies it.

[dma0034]

3 hours ago, MJS said:

He sure thinks he is special. Let's see if his play on the field actually justifies it.

 

They've given him more coming in then they ever gave Fields which is bs to me. I don't like Williams cockiness coming into the league and I think he's very unlikable but if he wins he'll be crowned a king

[FireChans]

8 hours ago, Ethan in Cleveland said:

Bears were gifted the first overall. They could have kept Fields, traded down and gotten MHJr, and another boat load of picks. They could have let Fields walk and sign Wilson or another vet. 

Williams wasn't even that good at USC. He is going to be a bust.

They screwed up big time 

They traded the #1 pick last year. That’s how they got it this year. It wasn’t a “gift.”

 

Eventually, you have to use your picks to find a good QB, something the Bears haven’t had in a decade plus. Caleb was the best QB prospect in the last two seasons. It’s much easier to argue that they did everything right, even if Caleb isn’t the answer.

Edited July 18 by FireChans

[Don Otreply]

9 hours ago, DaggersEOD said:

And it has to last them the rest of their lives. 

So getting a job after their playing career is over is not on the table any more?? 

[aristocrat]

He should have established Florida or Texas residency so his signing bonus wasn’t taxed by the state. Game checks would be taxed though 

[RangerDave]

9 hours ago, Orlando Buffalo said:

All the stars on TB are paid the whole salary except for league minimums in signing bonus that is paid out over time.

They still pay federal income taxes, OASDI taxes, health insurance premiums (I assume?), etc.  They don't get 100% of their salary in their paychecks like I do. (My salary is so low for two of my jobs, that they do not take state or federal taxes out.  But at the end of the year, I have to lump all income from my various parttime jobs together and pay taxes if the combined total is over the standard deduction.)

[Orlando Buffalo]

1 minute ago, RangerDave said:

They still pay federal income taxes, OASDI taxes, health insurance premiums (I assume?), etc.  They don't get 100% of their salary in their paychecks like I do. (My salary is so low for two of my jobs, that they do not take state or federal taxes out.  But at the end of the year, I have to lump all income from my various parttime jobs together and pay taxes if the combined total is over the standard deduction.)

You are correct, I mentioned the no tax states to insinuate I was referring to  state taxes only. If a guy has a 4 year $5 million per year salary, and $4 million was paid in FL vs being paid in NY the player would save $1.2 million in taxes over the course of the contract. 6% is a big difference to me

[Don Otreply]

IMO, if you aren’t paying taxes your shouldn’t be allowed to use any infrastructure in this country,

 

roads, airports, access to clean water,  police, firefighters, schools, etc etc, pay your share or hit the road,

 

to make it clearer for the cognitively impaired, we are talking about people with financial means…, 

Edited July 18 by Don Otreply

[prissythecat]

When playing on the road,  NFL players have to pay state tax in those states thaf have it .  So they don’t get a completely free lunch playing for a team in no tax state.

[SoCal Deek]

12 minutes ago, prissythecat said:

When playing on the road,  NFL players have to pay state tax in those states thaf have it .  So they don’t get a completely free lunch playing for a team in no tax state.

Is that true? Are you sure? I know it didn’t work that way when I traveled for business. 

[Cvanvol7]

19 minutes ago, SoCal Deek said:

Is that true? Are you sure? I know it didn’t work that way when I traveled for business. 

 

 

Was your business being a professional athlete? Because yes there are jock taxes in almost all states, I think even some cities have special taxes levied https://en.wikipedia.org/wiki/Jock_tax

[Frostbite]

19 minutes ago, SoCal Deek said:

Is that true? Are you sure? I know it didn’t work that way when I traveled for business. 

That is correct. Would love to see their returns. Most states give a credit for taxes paid to other state jurisdictions to prevent double taxation. At the end of the day, each player is likely only paying in whatever their home state tax is (unless it's a very low rate or no tax like FL/TX/TN).