Russell Wilson Contract

[SteelerSask2]

I'm hearing some things about the Russell Wilson contract that I'm a little unsure about. They are talking about a relatively small number considering he has led them to two consecutive Super Bowls with basically the whole amount guaranteed. I don't think that is right, that will create an uneven competitive advantage with the richest owners who can pay the biggest one time investment cheque saving a hell of a lot of cap space. I realize there is risk in a fully guaranteed contract, but how much risk is involved in Russell Wilson. He is young, has been durable and has shown no signs of off field issues whatsoever. I think the league should take a hard look and possibly reject this contract if it goes down this way.

 

[FordFairLane]

Depends on the numbers. Wilson might rather have 80 million totally guaranteed than 120 million with only 30-40 guaranteed. Either way he is rich and maybe the security is worth more to him. I personally don't think Wilson is an elite QB at this point and would not give him a cap crippling deal.

 

[Litos]

Why would the league reject a contract like that? Is a decision between a player and a team, a transaction made under a free market.

If Ben signed with the Steelers for 10 millons a year guaranteed cause he thinks that it is more than enough to live happily then why would the league interfere and reject it?

 

[Confluence]

The structure matters. Maybe the gtd amount now allows another financial deal that blows it back up over time ..... wouldn't surprise me because Paul Allen could easily have a "friend" do that.

Marsha does a similar thing in getting a cash amount for a seemingly better deal for the team. My guess is that there exists a financial engineer to make this the same or better.

Someone ought to call the IRS about this implied neat little benefit; it should be taxable.

My guess is that turning the smaller amount to income now, then re-constituting it later as investment income lowers the net tax and makes the deal acceptable. Kinda like how Warren Buffet and Mitt Romney pay tax at a lower rate.

 

[insaniti]

I'm not sure how you think this creates an uneven competitive advantage. It's a risk for the Seahawks. Lets say he signs a 80 million, 6 year contract with a 20 million signing bonus. His annual salary would be 10 million each and every year of the contract, with the 20 million spread out over the length of the contract. So his cap hit would be 13.3 million each year. HOWEVER, if he gets hurt, his play declines, or they cut him, he will still receive that whole contract. On the other hand, if he continues to play well, and gets better, they are getting a top tier QB at a fraction of the cost. It's a risk for each side, but this is the type of deal every team wishes their players would negotiate in reality.

The Steelers have paid Ben 105 million since he was drafted. Only 34 million of that was guaranteed. If he had signed a 6 year 80 million fully guaranteed deal, Ben would have lost 20 million, but the Steelers would have saved 20 million, and you wouldn't have seen cap hits of 18-19 million because of restructures. It's a high risk high reward type contract for the Seahawks. The question is why would Wilson sign a contract like this? Joe Flacco set the market for average to above average QB's with super bowls on their resume's.

 

[MT~Forged]

How much money is enough? Are the Championships worth more to him then the extra 30-40 million? If saving the team 30-40 million allows them to build a BETTER team around him, and they see another 3-4 SB's, who is laughing then? When everyone else is living off their playing money, maybe he is able to rake in another 100+ Million during retirement.

 

[Wingman]

80 million Guaranteed is huge! no risk for him at all. If he gets cut he gets paid. If he gets hurt he gets paid. If he becomes not worth the deal he still gets paid. If after all the taxes, fees etc he ends up with only 30 million and just decides to put it in savings accounts and spend it he will be able to live very well. figure life expectancy of 60 years post contract and he has 30 million in the bank that becomes a tax free salary of 500,000.00 per year. That will be tough for anyone to live on.

 

[swal75]

Fully guaranteed dollars have to be put into escrow. A rich team can afford to put it away whereas the "poorer" season to season type payroll owners such as the raiders can't do it. Most of the "guaranteed" dollars you hear about are for injury only.

 

[MT~Forged]

80 million Guaranteed is huge! no risk for him at all. If he gets cut he gets paid. If he gets hurt he gets paid. If he becomes not worth the deal he still gets paid. If after all the taxes, fees etc he ends up with only 30 million and just decides to put it in savings accounts and spend it he will be able to live very well. figure life expectancy of 60 years post contract and he has 30 million in the bank that becomes a tax free salary of 500,000.00 per year. That will be tough for anyone to live on.

Investment income is still taxable.

 

[Confluence]

Investment income is still taxable.

but at a lower rate (15% like Warren and Mitt) if you can structure it properly.

 

[SteelerSask2]

The point about an uneven playing field as though a team might be worth a billion it doesn't mean that every owner has liquid cash to stroke an 80 million dollar cheque for the guaranteed money. Thus someone like Allen who can write that cheque is kinda doing an end around. Is it a risk to him? Yes? Is he putting his team in a better cap situation yeah. Can one of his companies hire Wilson as a spokesman for 5 times his value? ???????
The NHL rejected the Kovalchuk/ New Jersey Devils contract 4 or 5 years ago, because it was an end around of the salary cap.

 

[insaniti]

Just because it's 80 million guaranteed doesn't mean it's 80 million up front. The only thing up front is the signing bonus, the rest would be paid like a normal contract in yearly salary. The ONLY difference is they HAVE to pay him that much NO MATTER WHAT. If they cut him, he still gets that annual salary, if he gets hurt, he still gets that annual salary.

 

[swal75]

Yes, they have to set aside fully guaranteed dollars in a special fund that has to be paid up front so essentially Seattle would be paying that 80M immediately and it would be dispersed to Wilson on a normal pay schedule.

 

[south dakota STEEL]

Very fortunate for Wilson. Lucky *******.

Very good QB. Gamer type....

 

[deljzc]

Wilson hasn't signed a contract, correct?

What are we talking about?

 

[Wingman]

Investment income is still taxable.

The principal is not, that is all I was calculating the division of the principal. One percent interest or less is not much and what ever he pays or has to pay will only be on the interest.

 

[SteelerSask2]

Wilson hasn't signed a contract, correct?

What are we talking about?

Exactly what I said. The word is out that is how the contract is going to look. If we are only going to talk about what has happened The Pats cheated and won another super bowl, Bell got hurt and the Steelers lost in the Wild Card. And Jarvis Jones Sucked. Shut down the site now it's all been done.

 

[Drink IRON City]

........Come on, we've had longer POST(s) on potential alone. LONGER, b ut shorter POSTs on short people. Talking about Wilson's contract shouild fall inbetween that, somehow. I would be curious to see what the structured pay out is. There is nothing that says it has to be in equal incriments or once a year payout. I'd think something to the tune of a large initial pay out, then gamely payouts of a smaller portion, then a large lump at end of contract. The end lump, is just a way to have a little leverage, incase something went wrong. Even though it's in escrow, doesn't mean its gauranteed. If for some reason Mr. Wilson didn't follow contract, then it could be litigated away. EXAMPLE: Contract for 6yrs, (i could care less about color / origins / etc.) Mr. Wilson finds out Kunta-Kinte is his great great great great grandpa. Russ decides to say **** it, in the middle of year three. He walks off field in game and finds a pay phone to call africa. He locates his "old" family and swims on over there. Gone for good. Well SEATTLE can contest the contract, for remaining $$$$$ in escrow.

NOTE: In no way was this intended to offend Russ or Kunta-Kinte. **** the rest of yaz (that cuss was for Omar)


Salute the nation

 

[Wingman]

Kunta kinte- nice use of your knowledge of literature. I have yo give karma for other folks again before I can give you karma iron

 

[MT~Forged]

but at a lower rate (15% like Warren and Mitt) if you can structure it properly.

Just correcting the "TAX FREE" statement, I know it is at a lower rater. I DO NOT agree with the lower rate, but that is a different argument/discussion.

 

[MT~Forged]

The principal is not, that is all I was calculating the division of the principal. One percent interest or less is not much and what ever he pays or has to pay will only be on the interest.

I stand corrected, mis-understood where you were going.

 

[Wingman]

I stand corrected, mis-understood where you were going.

No harm I was obviously not clear enough with my post, sorry for the confusion, By the way I would really like to try to live on only 500,000 a year wouldn't you, especially with out needing to go to work, no wonder these guys are retiring early.