NFL Contracts

[Longboysfan]

Could a player structure his contract so he get's paid for just showing up at the facility.
Say as a bonus he get's $2000 every time he goes to the team facility to work out during the actual year.
This would be to avoid paying taxes on out of state games - where state and local taxes are applied.
Thank you.

 

[jazzcat22]

They can probably write it any way they want to. Reduce the base salary for that to happen.

Unless there is something in the CBA preventing that.
This is where incentives may come into play as well.

Good question.

 

[Creeper]

The answer to the first question is yes, a player can get a roster bonus which is a payment for being on the roster on a given date. Roster bonuses can be lump sum, meaning a single large bonus payment on a given date or they can be paid on a per game basis.

Is a roster bonus taxable by other states? The answer is no because the bonus is paid in the state where the team is based.

Can a player take a roster bonus in lieu of salary? Yes, but roster bonuses effect the CAP differently than regular bonuses. Roster bonuses are treated like salary and are not pro-rated. And I do not believe a team can convert a roster bonus to a regular bonus so it can be pro-rated. I would have to do some research on that. Also, roster bonuses are not guaranteed. If a player is cut before the bonus pay date, he does not get the bonus. Salary that is guaranteed is paid whether the player is cut or not, and obviously a signing bonus is paid up from and cannot be taken back.

 

[Jumbo075]

A better solution is to recognize days of practice as work days. Players practice 5 days a week, and play a game one day per week. Instead of having to pay taxes for an entire week of pay for 3 hours of game time on the road, they should only have to pay taxes for the one day they are in town to play the game.

 

[conner01]

Sure, but it would be such a small amount it wouldn’t make much of a tax impact. The salary portion is paid weekly and you’d never get a player to agree to something that’s not somewhat guaranteed and the league would never let you structure a deal where any excessive amount is incentive money. I also don’t think any states tax people would allow it to not count. Any income is income and if he got it in a week he played in New York it would still be taxable income in New York.
A player could actually come out better by taking bonus money into tax free accounts for IRS since that’s a larger tax. Max IRA, use a trust for part of income and such. It would also help protect players from themselves lol
Spending is what leaves most player broke at the end of their career, not taxes

 

[kskboys]

They can probably write it any way they want to. Reduce the base salary for that to happen.

Unless there is something in the CBA preventing that.
This is where incentives may come into play as well.

Good question.

All NFL contracts have to be approved by the NFL and Player's U. I doubt if it would be allowed.

There are standard contracts that the NFL uses for most players.

 

[rags747]

The problem is that some states insist on getting a free ride.

 

[sunalsorises]

I honestly don’t understand why an athlete has to pay state tax in every state where the athlete plays. The team pays him and is asking the player to travel for work.

On another note, does the player have to pay tax when playing in London or Mexico City or in the event the game is moved to a neutral location due to disaster?

 

[Flamma]

I honestly don’t understand why an athlete has to pay state tax in every state where the athlete plays. The team pays him and is asking the player to travel for work.

On another note, does the player have to pay tax when playing in London or Mexico City or in the event the game is moved to a neutral location due to disaster?

I could be wrong, but I think these rules apply to everyone, it's just that the majority of the population don't pay the extra taxes. But with professional athletes there is a lot more money involved, and they can't hide it.

Sort of like, there is no sales tax in Delaware. If I buy something there and bring it back to NJ (like a 75" flat screen TV ) I'm supposed to pay a use tax to NJ. Never going to happen. But if I buy a car I can't get away with it. The second I register it, I pay.

 

[Corso]

I honestly don’t understand why an athlete has to pay state tax in every state where the athlete plays. The team pays him and is asking the player to travel for work.

On another note, does the player have to pay tax when playing in London or Mexico City or in the event the game is moved to a neutral location due to disaster?

Yup

 

[KingCorcoran]

I honestly don’t understand why an athlete has to pay state tax in every state where the athlete plays. The team pays him and is asking the player to travel for work.

On another note, does the player have to pay tax when playing in London or Mexico City or in the event the game is moved to a neutral location due to disaster?

States pass laws that require professional athletes to pay the tax if they play a game in their state. “jock tax”

 

[plymkr]

I would hate to figure out my taxes if a large portion of my salary is paid in different states with different tax brackets. I’d have to get an accountant that knows what he’s/she’s doing. Tax time would be a headache.