710 Tuesday BR's Jason Cole on what Russell wants plus more!

[hawxfreak]

They are trying to give him a really decent new contract that they can use bonus money to give him some now and kick in to full gear next year , clayton said by next February he could actually see nearly 40mil
Not quite the same situation as browner and RWs agent would take it as a slap in the face when hes going to make bank next year regardless
The FO does right by their players they don't try to screw around with them
Look at all the other contracts they have done , the season can't start soon enough

 

[EntiatHawk]

What we have is bits and pieces of information which in the end may have some truth but will not be the whole truth. We all should know that you can take something and spin one way or another by just using part of the truth that fits your message.

I say pay the man, make him the highest paid QB right here and now and structure the contract to be as team friendly as it can be. This,next year and years to come then it will be the benchmark that the other teams have to pay to their QB's. At that time RW will not be the highest paid and we will look back how we got a good deal.

I want Indy to pony up a boatload ; )

 

[fridayfrenzy]

The Seattle FO should give Wilson a few million bump in salary this year for some type of incentive to get this done now.

Signing an extension at this point is really for the Seahawks' benefit of using this year to pro-rate the signing bonus. Yes, RW gets his signing bonus a year early, but were talking about the investment income growth being the only thing enticing RW to sign now.

I disagree with the notion that seattle should give russell wilson a few million dollar bump when they never done that before, even with richard sherman and kam chancellors extension. Plus, giving him few million dollar bump would prevent them from resigning bobby waggner this offseason which makes no sense. Russell was drafted in the third round and therefore he makes 1.5 mill, he has to deal with it.

The Seattle FO has to do what is in their best interest. If they believe that signing him now is advantageous for the cap and in securing a lower long term contract then they should give RW a bump in salary.

If the Seattle FO does not sweeten the pot then there isn't really anything in it for RW to sign at this time.

What is in it for RW to sign at this time?
-signing bonus received 6-8 months sooner and can use that to generate investment income.

What is in for Seattle to sign at this time?
-get to use 2015 salary cap space for the pro-rated bonus
-ability to plan for Wagner and cap space going forward
-do not have the risk of any other big QB contracts signing before that could increase the market value of RW

 

[Narniaman]

The Seattle FO has to do what is in their best interest. If they believe that signing him now is advantageous for the cap and in securing a lower long term contract then they should give RW a bump in salary.

If the Seattle FO does not sweeten the pot then there isn't really anything in it for RW to sign at this time.

What is in it for RW to sign at this time?
-signing bonus received 6-8 months sooner and can use that to generate investment income.

What is in for Seattle to sign at this time?
-get to use 2015 salary cap space for the pro-rated bonus
-ability to plan for Wagner and cap space going forward
-do not have the risk of any other big QB contracts signing before that could increase the market value of RW

Let's suppose that RW did sign, and got a signing bonus of $20 million dollars.

Right off the top you need to subtract maybe 40%. . for Federal and State Taxes. Actually, it's more complicated than that. The top Federal rate is 39.6%; Washington has no state income tax, but pro football players have to pay income taxes in the states where they play. For example, in California the top rate is 13.3%; if the Seahawks play in California, and a player receives an average of a million dollars a game. . .he would have to write out a check to California for $133,000 dollars.

But let's ignore that . . .and just assume a combined tax rate of 40%. That means out of the $20 million dollar bonus, he would get to bank $12 million dollars. Let's say he puts it in a high interest CD for a year; According to the rate for today, a year from today he would have accumulated. . . 1.25% of $12 million dollars, or $150,000.

Now consider. . . if holding out for a year would be worth a contract worth $22 million a year instead of $20 million a year over four years. . . that works out to an extra $8 million dollars.

Hmm. . .that would be a tough choice. . . $8 million dollars vs. $150,000. . . .

 

[rjdriver]

The Seattle FO has to do what is in their best interest. If they believe that signing him now is advantageous for the cap and in securing a lower long term contract then they should give RW a bump in salary.

If the Seattle FO does not sweeten the pot then there isn't really anything in it for RW to sign at this time.

What is in it for RW to sign at this time?
-signing bonus received 6-8 months sooner and can use that to generate investment income.

What is in for Seattle to sign at this time?
-get to use 2015 salary cap space for the pro-rated bonus
-ability to plan for Wagner and cap space going forward
-do not have the risk of any other big QB contracts signing before that could increase the market value of RW

Let's suppose that RW did sign, and got a signing bonus of $20 million dollars.

Right off the top you need to subtract maybe 40%. . for Federal and State Taxes. Actually, it's more complicated than that. The top Federal rate is 39.6%; Washington has no state income tax, but pro football players have to pay income taxes in the states where they play. For example, in California the top rate is 13.3%; if the Seahawks play in California, and a player receives an average of a million dollars a game. . .he would have to write out a check to California for $133,000 dollars.

But let's ignore that . . .and just assume a combined tax rate of 40%. That means out of the $20 million dollar bonus, he would get to bank $12 million dollars. Let's say he puts it in a high interest CD for a year; According to the rate for today, a year from today he would have accumulated. . . 1.25% of $12 million dollars, or $150,000.

Now consider. . . if holding out for a year would be worth a contract worth $22 million a year instead of $20 million a year over four years. . . that works out to an extra $8 million dollars.

Hmm. . .that would be a tough choice. . . $8 million dollars vs. $150,000. . . .

Isn't that $8 million subject to the same taxes as well?

I see your point, but believe there are a lot more variables involved depending on how the contract would be structured.

 

[AVL]

The Seattle FO should give Wilson a few million bump in salary this year for some type of incentive to get this done now.

Signing an extension at this point is really for the Seahawks' benefit of using this year to pro-rate the signing bonus. Yes, RW gets his signing bonus a year early, but were talking about the investment income growth being the only thing enticing RW to sign now.

I disagree with the notion that seattle should give russell wilson a few million dollar bump when they never done that before, even with richard sherman and kam chancellors extension. Plus, giving him few million dollar bump would prevent them from resigning bobby waggner this offseason which makes no sense. Russell was drafted in the third round and therefore he makes 1.5 mill, he has to deal with it.

They gave Browner about $250,000 in 2013 for no good reason. It was about what he lost to ped suspension.

 

[Narniaman]

The Seattle FO has to do what is in their best interest. If they believe that signing him now is advantageous for the cap and in securing a lower long term contract then they should give RW a bump in salary.

If the Seattle FO does not sweeten the pot then there isn't really anything in it for RW to sign at this time.

What is in it for RW to sign at this time?
-signing bonus received 6-8 months sooner and can use that to generate investment income.

What is in for Seattle to sign at this time?
-get to use 2015 salary cap space for the pro-rated bonus
-ability to plan for Wagner and cap space going forward
-do not have the risk of any other big QB contracts signing before that could increase the market value of RW

Let's suppose that RW did sign, and got a signing bonus of $20 million dollars.

Right off the top you need to subtract maybe 40%. . for Federal and State Taxes. Actually, it's more complicated than that. The top Federal rate is 39.6%; Washington has no state income tax, but pro football players have to pay income taxes in the states where they play. For example, in California the top rate is 13.3%; if the Seahawks play in California, and a player receives an average of a million dollars a game. . .he would have to write out a check to California for $133,000 dollars.

But let's ignore that . . .and just assume a combined tax rate of 40%. That means out of the $20 million dollar bonus, he would get to bank $12 million dollars. Let's say he puts it in a high interest CD for a year; According to the rate for today, a year from today he would have accumulated. . . 1.25% of $12 million dollars, or $150,000.

Now consider. . . if holding out for a year would be worth a contract worth $22 million a year instead of $20 million a year over four years. . . that works out to an extra $8 million dollars.

Hmm. . .that would be a tough choice. . . $8 million dollars vs. $150,000. . . .

Isn't that $8 million subject to the same taxes as well?

I see your point, but believe there are a lot more variables involved depending on how the contract would be structured.

Oh, absolutely.

Someone in Russell Wilson's tax bracket would have to pay the same income tax -- the marginal rate -- on the $8 million dollars as well as the $150,000.

So, using the aforementioned 40%. . . he would get to keep 60% of $8 million dollars. . .or $4.8 million dollars, as compared to 60% of $150,000 -- or $90,000.

And so as you point out, the question would become. . . $4.8 million vs. $90,000. . . hmm, which should I choose??