Bison in the NFL

[56BISON73]

The reality is, taxes aren't the problem, spending is the problem. As for taxes. Let's say $2 million the first year. $1.5 million in signing bonus, $500k of salary. Signing bonus is taxed to the state of residency. So many times the athlete will have Florida for example as state of residency versus Wisconsin. No state taxes. Saves 10% or $150,000. Federal taxes will be 37-38% range.


The signing bonus net of taxes will be $950,000.

The annual salary will be taxed to the state the team is located. In Watson's case Wisconsin. 50% gone in taxes. Net $250k. year 1 income $1.2 million net of taxes. When you play outside of the home state you are taxed in the state you play and get a credit for the taxes paid to visiting game state on his Wisconsin return. Thus for the game in Minneapolis, he is taxed on 1/16th or 17th now of his taxes by Minnesota. $30k of Minnesota income pays about $2,500 of tax to Minnesota, Wisconsin tax is lowered by that amount.

Someone playing for Tampa, Miami, Jacksonville will not pay taxes on 1.2 there game income. So a potential 75-100k savings versus a player from Wisconsin or Minnesota.

But getting back to the main point. It isn't the amount of tax, but the spending. Player makes a major portion of his income in the year of signing the contract. In this case 1.2 million. The mind set of said person, pro athlete, doctor, engineer, lottery winner is "I am making $1mm plus, thus I am spending accordingly". Whereas in reality they are making $250k after taxes. that is what they should base the lifestyle on, but human nature they don't.

As a result, you start buying multiple cars, homes (1 for the parents), you pay for everything for your entourage. $250k does not last long. But hey, I'll have a long career. So lets finance some of the purchases. And pay it off over 5 years. Well since my payment has gone down, I have more of the $250k left over, lets get a Florida house and car as well. Your debt has just doubled.

I haven't even gotten into the bad business deals these people will enter into. Again not only athletes, Doctors, Mircosoft employees, farmers. If you have money, people will present "opportunities" to make more money. Then things really go south.

A couple of local athletes, although they didn't make the big money with their NFL careers, they were smart. Signing bonus, the big checks, invested very conservatively. Did not touch it. Lived on the game check and also saved a portion of that. Secondly in both cases both are working locally.

In cases like Carson and Billy Turner, the fact their career earnings and signing bonus' have been so large. Hopefully they have saved enough they will never have to do a real job. In just seeing Billy Turner's house listing from Green Bay, it tells me he has a modest lifestyle and has probably saved a good chunk of money. When you have the big house and flashy cars, that means money is being spent and financial issues will probably soon follw.

.........

[southcliffbison]

The reality is, taxes aren't the problem, spending is the problem. As for taxes. Let's say $2 million the first year. $1.5 million in signing bonus, $500k of salary. Signing bonus is taxed to the state of residency. So many times the athlete will have Florida for example as state of residency versus Wisconsin. No state taxes. Saves 10% or $150,000. Federal taxes will be 37-38% range.


The signing bonus net of taxes will be $950,000.

The annual salary will be taxed to the state the team is located. In Watson's case Wisconsin. 50% gone in taxes. Net $250k. year 1 income $1.2 million net of taxes. When you play outside of the home state you are taxed in the state you play and get a credit for the taxes paid to visiting game state on his Wisconsin return. Thus for the game in Minneapolis, he is taxed on 1/16th or 17th now of his taxes by Minnesota. $30k of Minnesota income pays about $2,500 of tax to Minnesota, Wisconsin tax is lowered by that amount.

Someone playing for Tampa, Miami, Jacksonville will not pay taxes on 1.2 there game income. So a potential 75-100k savings versus a player from Wisconsin or Minnesota.

But getting back to the main point. It isn't the amount of tax, but the spending. Player makes a major portion of his income in the year of signing the contract. In this case 1.2 million. The mind set of said person, pro athlete, doctor, engineer, lottery winner is "I am making $1mm plus, thus I am spending accordingly". Whereas in reality they are making $250k after taxes. that is what they should base the lifestyle on, but human nature they don't.

As a result, you start buying multiple cars, homes (1 for the parents), you pay for everything for your entourage. $250k does not last long. But hey, I'll have a long career. So lets finance some of the purchases. And pay it off over 5 years. Well since my payment has gone down, I have more of the $250k left over, lets get a Florida house and car as well. Your debt has just doubled.

I haven't even gotten into the bad business deals these people will enter into. Again not only athletes, Doctors, Mircosoft employees, farmers. If you have money, people will present "opportunities" to make more money. Then things really go south.

A couple of local athletes, although they didn't make the big money with their NFL careers, they were smart. Signing bonus, the big checks, invested very conservatively. Did not touch it. Lived on the game check and also saved a portion of that. Secondly in both cases both are working locally.

In cases like Carson and Billy Turner, the fact their career earnings and signing bonus' have been so large. Hopefully they have saved enough they will never have to do a real job. In just seeing Billy Turner's house listing from Green Bay, it tells me he has a modest lifestyle and has probably saved a good chunk of money. When you have the big house and flashy cars, that means money is being spent and financial issues will probably soon follw.

You have forgotten one key element regarding financial woes of professional athletes. That is having the best friends money can buy...........

[CAS4127]

The reality is, taxes aren't the problem, spending is the problem. As for taxes. Let's say $2 million the first year. $1.5 million in signing bonus, $500k of salary. Signing bonus is taxed to the state of residency. So many times the athlete will have Florida for example as state of residency versus Wisconsin. No state taxes. Saves 10% or $150,000. Federal taxes will be 37-38% range.


The signing bonus net of taxes will be $950,000.

The annual salary will be taxed to the state the team is located. In Watson's case Wisconsin. 50% gone in taxes. Net $250k. year 1 income $1.2 million net of taxes. When you play outside of the home state you are taxed in the state you play and get a credit for the taxes paid to visiting game state on his Wisconsin return. Thus for the game in Minneapolis, he is taxed on 1/16th or 17th now of his taxes by Minnesota. $30k of Minnesota income pays about $2,500 of tax to Minnesota, Wisconsin tax is lowered by that amount.

Someone playing for Tampa, Miami, Jacksonville will not pay taxes on 1.2 there game income. So a potential 75-100k savings versus a player from Wisconsin or Minnesota.

But getting back to the main point. It isn't the amount of tax, but the spending. Player makes a major portion of his income in the year of signing the contract. In this case 1.2 million. The mind set of said person, pro athlete, doctor, engineer, lottery winner is "I am making $1mm plus, thus I am spending accordingly". Whereas in reality they are making $250k after taxes. that is what they should base the lifestyle on, but human nature they don't.

As a result, you start buying multiple cars, homes (1 for the parents), you pay for everything for your entourage. $250k does not last long. But hey, I'll have a long career. So lets finance some of the purchases. And pay it off over 5 years. Well since my payment has gone down, I have more of the $250k left over, lets get a Florida house and car as well. Your debt has just doubled.

I haven't even gotten into the bad business deals these people will enter into. Again not only athletes, Doctors, Mircosoft employees, farmers. If you have money, people will present "opportunities" to make more money. Then things really go south.

A couple of local athletes, although they didn't make the big money with their NFL careers, they were smart. Signing bonus, the big checks, invested very conservatively. Did not touch it. Lived on the game check and also saved a portion of that. Secondly in both cases both are working locally.

In cases like Carson and Billy Turner, the fact their career earnings and signing bonus' have been so large. Hopefully they have saved enough they will never have to do a real job. In just seeing Billy Turner's house listing from Green Bay, it tells me he has a modest lifestyle and has probably saved a good chunk of money. When you have the big house and flashy cars, that means money is being spent and financial issues will probably soon follw.

Fundamental economics really. More/all people should apply these principles on their level of income rather than expecting/counting on handouts … that the people who are finically conservative ultimately end up paying for. Just a passing thought.

[kab1one]

Fundamental economics really. More/all people should apply these principles on their level of income rather than expecting/counting on handouts … that the people who are finically conservative ultimately end up paying for. Just a passing thought.

As I noted in the example, it applies to Doctors, Lawyers, Microsoft employees when it comes to poor money management. To be honest the best experiences I have seen is the way medical doctors can lose money or invest poorly. What differentiates then from a pro athlete is career longevity. Athletes often times have 1 opportunity to make money. Whereas someone that makes money in the medical profession has the opportunity to make and lose money many times in their career.

[mtoutfitter]

As I noted in the example, it applies to Doctors, Lawyers, Microsoft employees when it comes to poor money management. To be honest the best experiences I have seen is the way medical doctors can lose money or invest poorly. What differentiates then from a pro athlete is career longevity. Athletes often times have 1 opportunity to make money. Whereas someone that makes money in the medical profession has the opportunity to make and lose money many times in their career.

Agree. It's called being productive and having a job.

[Son of a Bison]

Too many doctors I know from college days studied long hours during school and training while their balance sheets were in the red. Got married, had a few kids, got in the black financially, made some lifestyle choices, had to work more and more and then got divorced (which was the worst investment they could have made). Traded too much time for money at wrong stage of life.

[cx500d]

Too many doctors I know from college days studied long hours during school and training while their balance sheets were in the red. Got married, had a few kids, got in the black financially, made some lifestyle choices, had to work more and more and then got divorced (which was the worst investment they could have made). Traded too much time for money at wrong stage of life.

No, marriage was the worst investment choice, followed by having kids.


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[123Gobison]

I will bet money that Billy Turner and Christian Watson will go bankrupt within 2 years. Just my opinion.

[southcliffbison]

I will bet money that Billy Turner and Christian Watson will go bankrupt within 2 years. Just my opinion.

I'll play, you fucking asshole........within two years of what? their retirement? What lead you to that conclusion specifically with BT and CW?

[scottietohottie]

I look fucking lit in this public immunity stuff eh.