Bears' Top Pick Caleb Williams' Bold Financial Play Rejected by NFL: The Strategy You Need to Know
by Marley Watkins, Rey Jefferson, Luam Keflezgy, Aug 1, 2024
Disclaimer: This article is not a substitute for professional tax advice.
The latest buzz..
As the top draft pick, ProFootball Talk reports that Chicago Bears quarterback Caleb Williams requested that his $39 million rookie contract be paid to his LLC or as a loan. However, the NFL denied his request.
Why is this important?
The speculation is that this move would have had the potential to significantly reduce his state tax burden. Although the move was rejected, the bold play speaks to a desire to explore creative strategies for NFL players’ wealth and tax advisors. How can we play the game smarter, not harder? How did Williams even shoot his shot on this one?
What happened?
According to yahoo!Finance: Williams is signed to the Chicago Bears as a first-round draft pick in the 2024 NFL Draft, ESPN reports… Williams is currently under a four-year, $39 million deal with a $25.5 million signing bonus, according to On3. Another outlet, Sports Illustrated, reported his contract is a four-year, $39.5 million deal with a $25.5 million signing bonus.
The contract was recently signed after various discussions, as Williams reportedly had some unconventional requests. Pro Football Talk reported that various sources stated Williams, who doesn’t have an agent, was looking to receive compensation from the Chicago Bears as a Limited Liability Company (LLC). However, the NFL turned down this method of payment.
It was proposed that Williams could receive a forgivable loan, which would defer taxation on the funds until the loan was forgiven. The NFL also turned down the suggestion.
“Just for general knowledge, it’s very common for different things to be asked for in the very beginnings of negotiations,” the Chicago Bear’s general manager, Ryan Poles, said, per Sports Illustrated. “So it wasn’t anything shocking in terms of what was being asked for or anything like that. But at the end of the day I’m glad it worked out and pretty kind of standard.”
How does Williams feel about it?
Williams has yet to comment on the speculation surrounding the signing, however this raises the question. What if he’d been successful? Or better yet, how could he have achieved his ultimate business goals?
Tell me more..
Caleb could be saving even more than he thought by expanding his view of corporate structuring from just one business to a multinational corporation. While it might sound complicated, it's not just for pro athletes. You too can use similar strategies to give your tax, financial, and legal advisors more room to manage, grow, and protect your wealth.
Be the W-2 Guy or a Multinational Corporation
Imagine going from a regular W-2 earner to running a multinational corporation (MNC). By spreading your business wings across borders, you can tap into international tax laws that could aid in tax planning.
What could this look like for me?
Check out the free Simply Global calculator which simulates the generally accepted impact of going multinational (based on public data from the Fortune 500).
Just enter your estimated income and watch the numbers fly! This shows how much your advisors could help you save as an MNC.
More for you:
Become Multinational Corporation today
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