The Mayor of Fed Ex Field Posted January 7, 2003 Share Posted January 7, 2003 If a player signs a $10 million contract, after everything is said and done, how much does he walk away with? After the agents cut, lawyers fees, and taxes. Thanks in advance. Link to comment Share on other sites More sharing options...
redskin56 Posted January 7, 2003 Share Posted January 7, 2003 In the collective bargaining agreement, standard agent cuts are 3%. However, the new collective bargaining agreement will probably change this. The NLFPA is lobbying hard against a 3% payment for agents. They would rather see the agents paid on an hourly or contractual price instead of a percentage basis. The new trend in contracts is that the monies paid under the contract are tax free dollars. In other words, it may be a $10 Mill. deal that is truly worth about 5-6 because the teams pay the taxes due under the contract. Some contracts are not currently worked out like this but it seems to be a trend that is picking up pace. Lawyer's fees will be different for each Lawyer. It would not surprise me that most Lawyers would be on a percentage basis as well. Hourly rates would probably be somewhere in the $400-$600 an hour range. Link to comment Share on other sites More sharing options...
Art Posted January 7, 2003 Share Posted January 7, 2003 Smoot, That's too hard a question to ask. Are you talking about a straight bonus of $10 million, or a total contract value, including bonus, of $10 million. People sometimes forget that these bonus dollars are taxed at the highest rate possible since the government feels it deserves your bonus at the same rate you receive it. It's taxed more highly than base salary. Conceivably if a players signs a $10 million bonus when you take out taxes and attending agent (lawyer is included here) fees, you probably see him end up with around $4 to $4.5 million is my guess. Link to comment Share on other sites More sharing options...
The Mayor of Fed Ex Field Posted January 7, 2003 Author Share Posted January 7, 2003 Thanks guys, i just won my bet. Some yokel I work with said that if someone signed a contract for 10 mil, they would get that amount tax free. I had to look to you guys to prove him wrong, I already knew thae answer. Art and the other guy, I owe you both $6.667 that is 1/3 of the 20 I just made. Check is in the mail. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.