It is currently Wed Dec 19, 2018 5:58 am

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 58 posts ]  Go to page 1, 2, 3  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: 823
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: 5618
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: 823
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: 3204
Wow. I never knew that Athletes pay income taxes :P

_________________
To doubt everything or to believe everything are two equally convenient solutions; both dispense with the necessity of reflection.
- Henri Poincaré


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: 14350
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: 5618
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: 4203
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: 14350
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: 1961
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: 3204
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.

_________________
To doubt everything or to believe everything are two equally convenient solutions; both dispense with the necessity of reflection.
- Henri Poincaré


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

Joined: Wed Jul 09, 2014 10:34 am
Posts: 5618
Steelafan77 wrote:
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.


1%? Shit. Suh makes in the top .01%


Money Management to Mr. Suh....put half of your 25 million dollar signing bonus into bonds and don't touch it. Don't spend more than your take home pay each year....which is about 10 million minimum. Can you not fuck that up? If you want to get fucking crazy, you could save an extra million or two each year and live off the measly pittance of 8 million dollars a year.



These money management guys don't have to be Warren Buffett.

_________________
Image


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 9:41 am 
Offline
User avatar

Joined: Tue Jul 08, 2014 9:45 pm
Posts: 14350
Exactly, RS. Not that hard. Discipline is Key when managing your money. Always pay yourself first. Not in trinkets, toys, houses, expensive lavish getaways, parties.
Interest bearing investments. Lock up a lot of that money deferring it before taxes.


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 10:23 am 
Offline

Joined: Mon Oct 19, 2015 11:10 am
Posts: 1660
Image


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 11:03 am 
Offline

Joined: Mon Aug 21, 2017 11:45 am
Posts: 823
How do some of these guys like Pierre Paul(Giants) pay 0 in Jock taxes? They must have good accountants.


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 11:22 am 
Offline

Joined: Wed Jul 09, 2014 1:55 pm
Posts: 4561
R S wrote:
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.


I was married to a tax commissioner and that is indeed what happens. Whatever entity/city you earn income in (even if for a day) you are obligated to pay that municipality their portion.

So if you are a golfer and you win a pot of money, yup a portion goes to the local and state entities for that day

_________________
#CdnSteelerFanStrong


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 11:24 am 
Offline

Joined: Thu Nov 06, 2014 5:59 pm
Posts: 271
I believe that, years ago, every NFL team added a financial planner to their staffs- for the players benefit. How much more idiot-proof can you make life for these elite athletes?


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 11:59 am 
Offline
User avatar

Joined: Thu Jul 10, 2014 1:01 am
Posts: 12232
jebrick wrote:
They need to invest the money so they can get paid with the dividends like Warren Buffett and be taxed at 15%.


23.8%, plus state & local taxes. But we get the point.

_________________
------------------------------------------------------


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 12:10 pm 
Offline

Joined: Tue Jul 22, 2014 4:50 pm
Posts: 4726
He makes good point-,let’s blow up the IRS and start over


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 12:41 pm 
Offline
User avatar

Joined: Wed Jul 09, 2014 10:34 am
Posts: 5618
Donnie Brasco wrote:
R S wrote:
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.


I was married to a tax commissioner and that is indeed what happens. Whatever entity/city you earn income in (even if for a day) you are obligated to pay that municipality their portion.

So if you are a golfer and you win a pot of money, yup a portion goes to the local and state entities for that day


I get that, but how can you go play the Jets in New Jersey and have to pay BOTH NJ and NY? It's the double dipping thing.

_________________
Image


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 12:57 pm 
Offline
User avatar

Joined: Tue Jul 08, 2014 8:57 pm
Posts: 3204
Kodiak wrote:
jebrick wrote:
They need to invest the money so they can get paid with the dividends like Warren Buffett and be taxed at 15%.


23.8%, plus state & local taxes. But we get the point.


All depends. Florida has no state income tax

_________________
To doubt everything or to believe everything are two equally convenient solutions; both dispense with the necessity of reflection.
- Henri Poincaré


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 1:20 pm 
Offline
User avatar

Joined: Tue Jul 08, 2014 9:36 pm
Posts: 597
You folks are forgetting the constraints of being a w2 employee when giving your ingenious tax advice. I hate to bring real world application into this... Maybe Signstein can enlighten you.


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 1:43 pm 
Offline

Joined: Wed Jul 09, 2014 8:12 pm
Posts: 4324
In all that pissing and moaning he was doing I didn’t catch where he said how paying all those taxes didn’t leave enough for him to donate to charity or spend money to help clean-up the crime, drugs, and black on black murder rate.

Maybe he figured with so many of his associates taking knees on Sunday that it’s all covered.

Quote:
Put half that $25,000,000 signing bonus into bonds


Into bonds? Got nothing left after buying 6 cars, making it “rain” at da club, supporting a 12 man posse, and buying a ridiculous amount of bling.

What most of these fools do is blow a large % of their wealth on “assets” that quickly and dramatically depreciate in value. And in many cases they buy on credit and then end up with a bunch of debt after the cash flow dries up.

While bonds aren’t a great investment right now given the current interest rate environment, they still aren’t a bad bet if done wisely.

Half that signing bonus into munis would pay him $500,000 to approx. $600,000 annual tax free. The portfolio will take a hit as rates rise but long term that shouldn’t be an issue as the income will offset and if buying quality paper the default risk will be low.

That’s a real nice income stream and still leaves the other half for other investments and purchases.

Something like 85% of professional athletes are broke within 5 years of retirement.

Just dumb.

Then they sue their financial advisors. Kinda like Johnny Depp.

Pissed he’s running out of money and blames his financial managers. All the while they claim he blows through $2,000,000 a month and there is no way they can keep up with the outflows.

_________________
#CdnSteelerFanStrong


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 2:02 pm 
Offline

Joined: Wed Jul 09, 2014 1:55 pm
Posts: 4561
R S wrote:
Donnie Brasco wrote:
[

I was married to a tax commissioner and that is indeed what happens. Whatever entity/city you earn income in (even if for a day) you are obligated to pay that municipality their portion.

So if you are a golfer and you win a pot of money, yup a portion goes to the local and state entities for that day


I get that, but how can you go play the Jets in New Jersey and have to pay BOTH NJ and NY? It's the double dipping thing.


Don't quote me on this, but I think that stadium is some sort of joint venture between NY and NJ. So playing in that stadium is taxed at 2% (no clue, just throwing out an example). Half goes to NY and the other to NJ

_________________
#CdnSteelerFanStrong


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 2:03 pm 
Offline

Joined: Mon Aug 21, 2017 11:45 am
Posts: 823
Take a look at PIMIX bond fund. You can buy it through Ameritrade. Pays a 5% dividend and you can get a check sent each month. Beats the banks .1%


Top
 Profile  
 
 Post subject: Re: Suh explains big contracts
PostPosted: Fri Mar 09, 2018 2:26 pm 
Offline
User avatar

Joined: Wed Jul 09, 2014 10:34 am
Posts: 5618
My point with the bonds thing is when he has a ridiculous amount of money to invest, he doesn't need to be overly worried about getting it in the right investments for optimal returns. Just something safe and simple and let it compound. My god, sign up for a Vanguard account for christ's sake and save some $ from the leech financial advisors.

_________________
Image


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

All times are UTC - 5 hours [ DST ]


Who is online

Users browsing this forum: benstunner, Google [Bot], Smashmouth21 and 19 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