Russ did it.. Renegotiated his contract

[Bobblehead]

https://www.fieldgulls.com/2017/10/31/1 ... cquisition

no surprise huh?

[tweet]https://twitter.com/AndrewBrandt/status/925348283425452032[/tweet]

 

[seahawkfreak]

One can argue about RW's status in the NFL but this is what leaders of a team do.

:stirthepot:

 

[Spin Doctor]

One can argue about RW's status in the NFL but this is what leaders of a team do.

:stirthepot:

I would renegotiate my contract too. For Russ this is a life or death situation lol.

 

[Mistashoesta]

His blind side is more protected now. I would too.

 

[chris98251]

Probably picked him up at the Airport, set up a room in his house and ordered a piss load of Chinese food

 

[Alexander]

Some of the replies in this thread seem to suggest that Russ took a pay cut to accommodate Brown's contract. He did not. They simply converted his remaining salary for the year into a signing bonus, allowing them to spread the cap hit into 2018 and 2019. Basically borrowing a bit of future cap space to make the necessary room this year.

Despite what's been suggested in other threads, this did not require any financial sacrifice from Russ. It's fairly routine cap maneuvering.

 

[Anthony!]

Some of the replies in this thread seem to suggest that Russ took a pay cut to accommodate Brown's contract. He did not. They simply converted his remaining salary for the year into a signing bonus, allowing them to spread the cap hit into 2018 and 2019. Basically borrowing a bit of future cap space to make the necessary room this year.

Despite what's been suggested in other threads, this did not require any financial sacrifice from Russ. It's fairly routine cap maneuvering.

LOL of course not, its Wilson he can't have done anything to help the team. LOL pathetic

 

[brimsalabim]

it’s not “routine “ at all.

 

[rain7]

It's definitely a routine approach to freeing up cap room. I think Baldwin did this last time. This raises our cap numbers for future years though.

 

[scrummymustard]

Some of the replies in this thread seem to suggest that Russ took a pay cut to accommodate Brown's contract. He did not. They simply converted his remaining salary for the year into a signing bonus, allowing them to spread the cap hit into 2018 and 2019. Basically borrowing a bit of future cap space to make the necessary room this year.

Despite what's been suggested in other threads, this did not require any financial sacrifice from Russ. It's fairly routine cap maneuvering.

LOL of course not, its Wilson he can't have done anything to help the team. LOL pathetic

I don't know why you get defensive and keep thinking people are talking crap about RW. RW is great, some people on this forum for some reason don't like him, but what ya gonna do. In this example, they are just stating facts, it is not a diss on RW, but, he did not give up anything. He is getting exactly the same amount of money he was already getting, just faster. He helped out the team, just like Doug helped out the team when he did it earlier this year with the trade for Richardson. Romo was known for doing this in Dallas because they were so cap strapped and had to open up space all the time. Teams with minimal cap space do this a lot.

RW Cap hit in 2018 was $21.7 mil, now it is $23.7. 2019: was $23.2, now $25.2.

It is extremely routine, done throughout the league every year and helps out the Hawks cap space this year. Recognizing that, its also great for the player because its harder for teams to cut them in future years because of the increased dead cap hit, leading to player extensions.

 

[scrummymustard]

it’s not “routine “ at all.

It is a routine cap maneuvering tactic. These players have all done the same thing in 2016 & 2017 alone. (If they are on there more than once, then they have done it multiple times)


Russell Wilson, QB
Justin Tucker, K
Tony Jefferson, SS
Brandon Williams, DT
Philip Rivers, QB
Alex Mack, C
Cameron Heyward, DE
Doug Baldwin, WR
Jimmy Smith, CB
Rodney McLeod, FS
Terron Armstead, LT
Zach Ertz, TE
James Winchester, LS
Ryan Schraeder, RT
Patrick Peterson, CB
Doug Free, RT
Mike Iupati, G
Justin Houston, OLB
Devin McCourty, FS
Eric Wood, C
Philip Rivers, QB
Buster Skrine, CB
Jason Witten, TE
Orlando Scandrick, CB
Sean Lee, OLB
Antonio Brown, WR
Mike Mitchell, FS
Marcus Gilbert, RT
Jared Veldheer, RT
Mark Ingram, RB
Cameron Jordan, DE
Thomas Morstead, P
James Carpenter, G
Tyron Smith, LT
Tyrone Crawford, DE
Jimmy Smith, CB
Marshal Yanda, G
Ndamukong Suh, DT
Koa Misi, OLB
Corey Graham, FS
Charles Clay, TE
Cameron Jordan, DE

 

[bigskydoc]

The team told Wilson, instead of paying you $666,666.67 per week for the next 9 weeks, we are going to cut you a check for the full $6 million this week. You get a top ten left tackle out of the deal, and you save about $90,000 in taxes. There is literally no downside for the player in these restructuring deals, unless he lives in a high tax state, like California, and plays games in states with lower or no state income tax.

It's routune.

 

[Scorpion05]

The team told Wilson, instead of paying you $666,666.67 per week for the next 9 weeks, we are going to cut you a check for the full $6 million this week. You get a top ten left tackle out of the deal, and you save about $90,000 in taxes. There is literally no downside for the player in these restructuring deals, unless he lives in a high tax state, like California, and plays games in states with lower or no state income tax.

It's routune.

The only caveat to that, if I'm not mistaken is that he gets less in "take home pay." Since NFL players are paid on a 17 week basis, based on their base salary. So Russell gets more withheld in taxes and will have to sort all that out come tax time

 

[Vesuve]

One can argue about RW's status in the NFL but this is what leaders of a team do.

:stirthepot:

Plus 1.

 

[scrummymustard]

The team told Wilson, instead of paying you $666,666.67 per week for the next 9 weeks, we are going to cut you a check for the full $6 million this week. You get a top ten left tackle out of the deal, and you save about $90,000 in taxes. There is literally no downside for the player in these restructuring deals, unless he lives in a high tax state, like California, and plays games in states with lower or no state income tax.

It's routune.

Exactly.

However, for professional athletes, California is unfortunately still going to get their income tax as they go on the duty days method for income allocation, not the weekly pay check they receive.


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[bmorepunk]

The team told Wilson, instead of paying you $666,666.67 per week for the next 9 weeks, we are going to cut you a check for the full $6 million this week. You get a top ten left tackle out of the deal, and you save about $90,000 in taxes. There is literally no downside for the player in these restructuring deals, unless he lives in a high tax state, like California, and plays games in states with lower or no state income tax.

It's routune.

Not to turn this into a weird tax debate like the other thread, but is the tax savings due to it being paid out in Washington instead of other states where the income tax is higher during road games?

 

[Hawkstorian]

It cost Russ nothing, but don't let that get in the way of feeding whatever narrative you prefer.

 

[xStickybudz]

Like honestly this guy is one of the best things to ever happen to this franchise

 

[gowazzu02]

Like honestly this guy is one of the best things to ever happen to this franchise

yup

Business side aside.....that game winning drive tho!

 

[bigskydoc]

... for professional athletes, California is unfortunately still going to get their income tax as they go on the duty days method for income allocation, not the weekly pay check they receive.

This is not a performance bonus, which falls under the "duty day method." As long as the bonus is 100% guaranteed, then he won't have to pay the California tax. If any portion of the bonus is contingent upon him playing games in California, then they get their taxes.

Since he gets this money even if he retires, or is traded, the day after the check is cut, this money does not fall under the "duty day method."

Point I'm making though, is that this costs Russ exactly nothing, and may actually pay him slightly more.

The only caveat to that, if I'm not mistaken is that he gets less in "take home pay." Since NFL players are paid on a 17 week basis, based on their base salary. So Russell gets more withheld in taxes and will have to sort all that out come tax time

As a high income earner, we can safely assume that he has essentially 39.6% withheld from every pay check. We can also safely assume that they will withhold 39.6% of this bonus.

For this bonus, he will get a check for $3.624 million, with the rest going to the IRS. We can quickly calculate the break even point, as his takehome pay, after withholding, is $402,666.87 each week (ignoring state income tax obligations). $3.624 million divided by $402,666.87 gives us exactly 9 weeks, as expected.

So, it would take 9 weeks of weekly pay to make what he will take home with the one check.