It is currently Mon Jun 25, 2018 1:51 pm

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 58 posts ]  Go to page 1, 2, 3, 4, 5, 6  Next
Author Message
 Post subject: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 7:43 am 
Offline

Joined: Mon Aug 21, 2017 11:45 am
Posts: 429
Welcome to the real world Ndamu. It's also happening to millions of working class stiffs who never even sniff 1M.

Ndamukong Suh explains what really happens to star athletes' huge contracts
Mike Ehrmann/Getty

•Miami Dolphins defensive lineman Ndamukong Suh explained to Business Insider that athlete contract values should really be split in half because of taxes and fees.
•Suh said that players face heavy income taxes, state taxes, city taxes, the "jock" tax, agent fees, and regular life expenses, which cut into their earnings.
•Suh said he doesn't think casual fans understand that players don't really make what their contracts say.

In 2015, Ndamukong Suh signed one of the biggest contracts in NFL history, agreeing to join the Miami Dolphins on a deal worth $114 million over six years, with $60 million guaranteed.

However, like many contracts in professional sports, the numbers aren't exactly as they seem.

While speaking to Business Insider to promote his investment with emoji app Genies, Suh said that most people don't understand that when players sign eight- and nine-figure deals, they should really split the number in half. He used his rookie deal as an example.

"Off of my rookie deal, which I'm not hiding anything, you can go and look at my deal, I had $40 million guaranteed, it was 6 years for $40 [million]," Suh said. "And you take the $40 million that was guaranteed and you swipe that in half because of taxes."

Suh then explained how all of the different taxes and fees add up.

"Uncle Sam, the new tax reform, 37% goes to him," he said. "And then you have to factor in, I was in Detroit, so you have to factor in taxes there. So that would be Michigan state taxes and then you have the city of Detroit taxes, which is going to be 1 or 2%.

"So after you look at the particular piece, I'm probably, if I'm not mistaken, Michigan is at like 4 or 5%, so that's 42 [% of the deal]. City of Detroit's 1 or 2[%], so you've got 43 [% of the deal], then you throw your agent fees, that's 45, and then you throw in the concept of inflation, which is another 3[%], that's 48, and then living expenses, let's just say that's 2%, you're at 50%."

Suh noted that he also benefitted from being a first-round pick under the old CBA, saying players who were drafted in later rounds in the new CBA make less money.

Additionally, the "jock" tax — which taxes players for every state in which they play during the season — cuts into their earnings.

"So when I play in New York, when I play in New England, which is Boston, Massachusetts. I play in Buffalo, New York, I'm getting taxed twice in New York. And I have to allocate taxes for that because they don't take taxes out of your pay check ... And then even when I play New York teams, I'm getting taxed out of New York, but also I'm getting taxed out of New Jersey because I'm technically playing in the state of New Jersey."

Suh added: "Athletes have large W2s; we're hit very heavily."

As former NBA player Josh Childress once explained, many athletes also make life purchases, like houses and cars, without taking into account the smaller figures that they're truly earning.

"I think people have allusions of, there's no reason guys should ever go broke," Suh said, adding, "I don't think people see those things and understand what goes into that."


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 7:59 am 
Offline
User avatar

Joined: Wed Jul 09, 2014 10:34 am
Posts: 5372
Does Suh think the average American pays no taxes??? And you can't lump living expenses in with what gets taken from taxes......."37% to Uncle Sam, 4% to Michigan, 1% for my $105,000 Lambo, 5% for my 15,000 square foot house.......how will i survive!!?" jesus he sounds dense.

But how the hell can they get double taxed by NY and NJ if they are playing the game in NJ? that makes no sense.

_________________
Image


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 8:08 am 
Offline

Joined: Mon Aug 21, 2017 11:45 am
Posts: 429
I guess NY wants a bite since the Giants are a NY based team. NJ wants theirs too since the game is played in NJ. They all want a piece.


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 8:32 am 
Offline
User avatar

Joined: Tue Jul 08, 2014 8:57 pm
Posts: 2985
Wow. I never knew that Athletes pay income taxes :P

_________________
"Golf and sex are about the only things you can enjoy without being good at." - Jimmy Demaret


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:03 am 
Offline
User avatar

Joined: Tue Jul 08, 2014 9:45 pm
Posts: 12708
I think football players [Suh] in this case under-estimate the 'casual fan' regarding the monies and taxes incurred in his sport. Just because you make in the top 1% you think you'll get taxed differently than other tax paying Americans that never see that type of money? Why should there be any exceptions for you or any professional sports player? Two words: Money Management! Either learn how to manage your fortune or hire someone who can do it for you and not fuck you over.


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:21 am 
Offline
User avatar

Joined: Wed Jul 09, 2014 10:34 am
Posts: 5372
Steelergenie wrote:
I guess NY wants a bite since the Giants are a NY based team. NJ wants theirs too since the game is played in NJ. They all want a piece.


That does not sound legal, unless they spit it in half what would entirely go to one state or the other.

_________________
Image


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:22 am 
Offline
User avatar

Joined: Tue Jul 08, 2014 9:26 pm
Posts: 3806
Just checked my pay stub. Yup, I also pay Federal, State, and Local taxes.

_________________
"Antonio Brown doesn't need to respond to anything," Tomlin said. "He walks into stadiums and he's Antonio Brown and he made Antonio Brown plays."


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:28 am 
Offline
User avatar

Joined: Tue Jul 08, 2014 9:45 pm
Posts: 12708
Exactly. When I resided in Nevada for example [no state taxes], I would work over the border in califukinya from time to time guess what? I'd have to claim califukinya state taxes too. Not that I liked doing it. Law requires I do it. Again, Money Management....


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:37 am 
Offline

Joined: Thu Oct 22, 2015 2:55 pm
Posts: 1567
I'd LOVE to "try" living off half of $40 million!


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:37 am 
Offline
User avatar

Joined: Tue Jul 08, 2014 8:57 pm
Posts: 2985
There is no way around it for the athletes. They need to invest the money so they can get paid with the dividends like Warren Buffett and be taxed at 15%. 98% of us do not have that option.

_________________
"Golf and sex are about the only things you can enjoy without being good at." - Jimmy Demaret


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 58 posts ]  Go to page 1, 2, 3, 4, 5, 6  Next

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: Google [Bot] and 12 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
FORUM RULES --- PRIVACY POLICY




Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group