Love this topic because it's rarely discussed. The win bonus aspect in the playoffs is very intriguing. In the XFL this past season, players had a $1,000 win bonus during the regular season. But 7,000 for a playoff win and then 11,500 for the championship game. Players and coaches openly talked about the bonuses being added motivation to win.
8:00 I work with the brother of the assistant S&C coach of the Niners and was told he got a $30k bonus for getting to the Superbowl. Would have been more had they won but I can at least confirm the employees also get bonuses. Keep up the great content JT!
I became good friends with Tommy Knight who was the Cardinals first draft pick in 1997. You know how when guys get drafted they give them a hat with the team logo? Well, Tommy told me his first paycheck said minus $22 for the hat. They actually made him pay for the hat.
Made me think of the scene in moneyball where the A's had pay vending machines in the locker room for the players and the David Justice character is absolutely appalled.
I remember when my Bears making the playoffs after a long drought in the mid-2000s. The media ask one of the players what is the best part of the playoffs. He replied with the extra checks" that when I learned that players only truly get paid during the season.
HEY JT! New to the QB school, and remember watching you and hearing your name growing up alot. It's great to see how you reinvented your self as an Athlete!, with this platform. Can you do a video that walks the viewers through the process of what happens to first round picks after they receive there signing bonus, and also how players today have transitioned into better business men and not end up broke!
Years ago I knew a CPA who somehow got a copy of a pay stub for the Giants' Lawrence Taylor. This was in the days before automatic deposits. He got a regular check/stub just like all the rest of us. Except with a ton more numbers....a ton more. Income and withholdings. And a neat Giants logo on the stub.
Thank you. That was very well done. It still amazes me how many Professional athletes, mostly in NBA and NFL, are broke soon after they stop playing. A Budget and Finance class should be mandatory.
@@johnlewis8934 Agree. But since so many come from poverty or lower middle class, they are not used to having the nice lifestyle. It is after that first paycheck is gone does reality set in. But the folks around them don't want to hear that as they want more money. Then when the money dries up, they are gone. It is hard to build wealth when people are so dependent upon one person to be the savior instead of each person getting up doing something to greatly increase the chances that their life will improve and support each other.
Early 20s given big money. And most of Americans don't know how to manage money just because someone has a lot does not mean they know how to manage it. Now some players go broke from too much spending, partying and another one having too many babies with different women.
Very interesting topic JT ! I was wondering how does it work when you get cut from the 90 person prelimenary squad to the 53 man roster ? Is everybody on a contract and if so is your contract voided, do you get a release fee, how does it work financially for the guys who get cut ? Love the vids and keep them coming !!
depends on how the contract is for that player. Some may get cut, and the team pays out the rest of his contract. Some get cut, and thats it for there pay.
You have injury settlements. Also the player will only get whatever is guaranteed. You take most guys that get cut in the first round of cuts during camp they will only have at times a $3k or so signing bonus which is paid out right away. Then the only other money they would get would be whatever they got paid per week of camp they were there for. For an example looking on Spotrac on one team a player undrafted signed 3 years $2,850,000 contract with $20,000 at signing. He made the team but if he would have been cut only the $20,000 would be paid to him and whatever he earned from camp which is $1850 per week for first year and all veterans $3,200.
I watched a different video by someone else. He was given an old paystub from a former player. The guy was taking home $170k per week after taxes. If you can't live off that you need to fix a few things.
You’re right, BUT….imagine your 22 year old self getting paycheques like that and thinking they’ll be coming in that way for the next 10 years. For the first little bit, it would be hard not to be wasteful
Have you done a episode on super bowl rings? Who all gets one, what’s the cost, who decides on the design and how long does it take before you actually get it?
I went to school in Philly. Occasionally there’d be a story about a visiting high-paid NFL player and how much they would have to pay in city tax. John Elway comes to mind as a subject of one of those.
Love the content as always! Have you done any videos on cadence? I’ve always been curious as to how cadence is called in the huddle especially for qbs who use the “double cadence” for example white 80 white 80 set hut (No snap) blue 80 blue 80 set hut *balls snapped* are there sessions in practice just doing cadence?
there is a guy who did a video like this but on MLB pay . He called the pay they got in the pre season camp pay as " Meal Money " in a nut shell they only get paid for the meals . (roughly $20 per day )
Its intresting that you say that there isn't much of a difference between the check if you win or loose a playoff game. I would have thought that if you win you get "two" checks at least (for the game won, and at least the next game win/lose because you made it to that round), but if you lose you only get that one check
I was left with questions. What percentage do the agents get? What's an average salary and check in the NFL? What's the pay for Pro Bowl? Super Bowl winning team? Super Bowl losing team? Super Bowl MVP check? Season MVP check?
This was a good video. It also explains why Tom Brady is willing to take less money leaving money to sign other players. He knows that by winning not only in the regular season but in the playoffs and super bowl he's going to make his money back. Plus the more he wins the the more endorsements he's going to get.
Facts...that's why I credit Brady more for the dynasty they had in NE. It's not necessarily what's he's done on the field (though he's no doubt an all-time great) and not to take away from the genius of Belichik. Belichik carried Brady early on with the defenses he fielded but the discounts Brady always took enabled Belichik to construct what he wanted on his terms to be good, year in year out. If Brady asks for his market value every contract, IMO I don't see the yearly SB contention playing out like it did. Then again, people can certainly be justified if they think the opposite.
Belichik AND the Patriot organization were extremely fortunate Brady didn't get top QB value during his prime playing years. He sacrificed some of his personal money to keep OR sign better players AND keep winning. The Pats were competitive during Brady's 20 year run. Giselle's money is great BUT it's not like he was getting paid one million dollars a season. The QB is the highest paid player on MOST NFL teams. He was compensated pretty good. REGARDLESS. He's not hurting. He wants to win. REGARDLESS. This is one reason he is the GOAT!
JT, there were two points you didn't cover that would be interesting to know. One, the NFL Player Association fees (if any) as well as how the retirement program works. Two, some of these bi-weekly checks are huge thus Taxes are huge and with the compressed pay for a year over say half year means over paying taxes. How do players learn to handle this?
Right, Like he kept saying 2/17th's of your check. I was like just say when you sign your contract, you get a pile of money and then every week during the season, you get regular checks.
Growing up my next door neighbor was Scott Brocius…. Once we were old enough to understand, he showed us a pay stub from the athletics………..then later after winning the series with the Yankees………. Wow
Back in the early 90s a Packers practice squad player stole a roster players check from his locker and either cashed it or tried to cash it, yeah he was caught. I believe the roster player was guard Rich Moran.
I remember when MTV Cribs was a thing and sport stars will show off their houses. Unless they're Lebron James or Carmelo Anthony in their rookie years, I doubt any of them will maintain the lifestyle of a $6 million dollar mansion, 5 luxury cars, and a million dollar home for their parents.
I believe they do. I remember seeing somewhere about a player picking a team based on how tax friendly their schedule was as far as home games + divisional games
Where does the team revenue come from to pay the players regular season and playoff season? Where does the team or franchise revenue come from and how much?
They do. It's part of the rookie symposium. Individual teams will also have sessions for new players and rookies, even to the point of teaching them table manners (so they feel more comfortable and professional at business lunches and team events).
The original questioner asked about taxes, which is very significant; athletes don't net nearly as much as reported: the IRS' highest tax bracket (all income above ~$600K) is a whopping 37%. Assume state income tax averages to 5%. Agent gets 3%, according to one source. NFLPA dues average $31,000/year. On top of that, say a guy wants the nice car, house (and maybe buy mom a house), clothes, model girlfriend, then he might no longer be a millionaire, but, as one NBA player put it, "a high thousandaire." Back me up, JT!
My uncle does tax work for a company like H&R Block and he handles (is assigned) tax returns for random athletes, some NHL, some NASCAR, NBA, etc. He said they have to do tax returns for every state they played in or made money in, including if they go to Canada- Canadian taxes. I couldn't imagine keeping all that straight, mailing in 40 different tax returns. Also he laughed when he said they send in ridiculous write-offs- things like a bottle of water, Subway sandwich, etc.
I think the tax can also vary based on where an individual game was played (where the work was being performed). If game is being played in Chicago, then both home and away team are subject to Illinois tax codes, etc.
@@j.e.7430 For the Illinois game the state of Illinois will charge 4.95% tax. This is what is actually owed for someone who also lives there. If you live in a non-income tax state like FL, TX, etc. you lose this 4.95% without any offset. If you live in a higher tax state like CA, NY, etc. you still have to pay the higher rate where you live but you receive a credit for the 4.95% Illinois charges.
How do taxes work? NFL players must pay state tax in all of the states they play in, correct? How does that work with the player's state of residence? Does that state also expect a cut?
The player ends up bearing the higher of the two rates. If residence is higher player gets a credit for tax paid to source state. If away state is higher residence state credit is limited to what the residence state would have charged.
Aren’t signing bonus checks spread out over time? And now they manipulate the cap with voidable years on players contract. Like kicking the can down the road
The cap hit might be what you are thinking of with signing bonuses. THAT gets spread out over time - even though in most cases the money is paid immediately.
Seems like a silly question, but I've always wondered where they deposit their huge checks? Surely that's not going into a normal bank account, as a normal checking/savings account is only FDIC insured up to $250K.
I have a question about travel “meal” money. I had a friend who worked support in the NHL. He told me me guys receive an envelope of cash right before they get on the plane, for a road trip, according to how many days they’ll be gone and the amount of the per diem allowed in the NHLPA agreement. Is there such thing as that in the NFL?
My mom worked with a person who's wife was an NFL team employee. She was told the team paid all the players' bills and gave the remaining money to the players. They didn't want their players to be in the news for failing to pay child support, or having cars repossessed, or houses foreclosed, etc.
This is the sort of thing that warrants a trust fund to deposit the pay into, then get a weekly or biweekly stipend out of it like a regular paycheck for the full year.
It’s the same in all sports. Think of how much money good NBA, NHL or MLB franchises make during deep playoff runs. Don’t have to pay the players but keep bringing in that revenue of ticket prices, at a much higher per ticket cost.
I think about the money I blew in the military. I was young and dumb on many occasions. Now, compound this by A LOT. I can only imagine what I would have done with that kind of pay. I wish players would invest at least 1/2, if not more, of their take-home pay. Many of them could live securely off dividends & interests for the rest of their lives.
Only if you live in one of those states. You end up paying the GREATER of your home/domicile state tax rate and the rate of the location where you play (source state).
My homeboy was getting $7500/wk when he was on the practice squad. If/When he got put on the active roster he would make the league minimum which was like $45k a week. He got paid every Tuesday.
Hey JT, great idea for a channel! I have a two-part question for you, what do practice squad players make and what happens (salary wise) if a player goes on and off the practice squad?
This is interesting and made me curious about the money doled out for SB winners. $164,000 each player and then whatever is leftover after taxes. More than what most make in a year--not bad.
Just think someone on Green Bay's or Buffalos practice squad vs. San Fran or Miami. Its still a good check ($200K +/-/year), but the rent $ difference between the cities, I imagine ps players share apartments in a lot of cities.
Here’s a question I’ve always had: what do the highest paid players actually DO with all that money ?? For example, if a player makes say $10M, his game check would be around $588K minus deductions. Obviously no one will spend that much money every week. Even if you live in a mansion and have 6 cars, you can’t burn through $588K x 17. What do they do with the millions per year that they don’t actually spend ? Is it stocks, bonds, real estate, bitcoin ? What’s the most common parking space for the money ?
Understanding that an NFL career is typically shorter than working in a factory setting, is there a retirement and if so, how long do you have to play to draw retirement?
If most players get less money for playoff games than regular season games, is it a common theme that players should get paid more in playoff games to better reflect a regular season game? Or would that create too much of an inequality between playoff and non playoff teams?
It seems more and more common to hear of controversies surrounding younger players wanting long term deals (like most recently Dak and Jamal Adams). Doesn't 4 or 5 years seem like too long a time to have to keep star players on cheap rookie contracts? 3 years sounds more reasonable.
Are players taxed the same home or road games. I heard depending on what state they play in, at the end of the year, they have file they have to pay taxes in that state.
do NFL agents push in bonus schemes like in other sports? as a example through season you get 5+ sacks or a WR completes 30+ catches or you finish with best running yards in NFL season?
What is a player responsible for in terms of travel, hotel, meals. Are taxes taken out of each check or are you considered as contract labor / self employed?
JT, What does the league to do help young players who receive large amounts of money at one time? I always hear stories about how players go through their money so fast without really having anyone to help be a financial advisor and show them how to budget their money. What are your thoughts?
So interesting. Is it true you pay state and local taxes based on where the game is played? E.g. different tax rate in CA vs FL. How does the huge difference in player salaries affect relationships on the team?
Sometimes it's not how they manage their money, it's how someone else does. There are stories all the time of financial advisors mismanaging their clients' money. And of course the obvious, people blowing the bag once they get it.
@@daveg4236 So if somebody signs a $10 million contract with a $2 million signing bonus, they get $2 million when they sign and then $10 million/17 in game checks?
@@CJFloden 10m deal that includes 2m guaranteed. So now if it's a one year deal then take that 8m and divide by 17. But...looks like these comments are saying the checks are spread out different now. I don't pay attention. Remember to chop that game check in half for taxes and an escrow that they pay into
Really would have benefited from more detail. How much $ for workouts? For camp? Wish that stuff was translated. “A little...”, “A lotta...” money doesn’t convey much.
Lot of information left out. How does pay work for players on injured reserve? What if a player is cut or traded after the season starts? Do they get playoff money if their old team makes the playoffs. How do state taxes work when you play road games in another state? Video was not very informative at all. On a 1 to 10 scale.... I'd give it a 2.5.
Your net worth is your assets - liabilities. A big chunk of players assets is the actual cash money that’s in the bank. So I assume some nfl players net worth are that high. However, it’s probably a good estimate since we don’t know players other assets or liabilities.
Thanks J.T.!! Wondering about injuries if your injured and cannot play for X number of games do you still collect the same check? What if you blow out an ACL or something major and get sent to IR? Wondering if that changes your pay? Also is there a change in pay if you move up the depth chart or if you play in a game on the field v. on the bench? I know you mentioned roster bonuses not sure if that was what you meant. Appreciate the content and look forward to more to come.
Love this topic because it's rarely discussed. The win bonus aspect in the playoffs is very intriguing. In the XFL this past season, players had a $1,000 win bonus during the regular season. But 7,000 for a playoff win and then 11,500 for the championship game. Players and coaches openly talked about the bonuses being added motivation to win.
8:00 I work with the brother of the assistant S&C coach of the Niners and was told he got a $30k bonus for getting to the Superbowl. Would have been more had they won but I can at least confirm the employees also get bonuses. Keep up the great content JT!
He would’ve also gotten a ring too
Go Chiefs!
150K for the players. That’s fucking insane
I became good friends with Tommy Knight who was the Cardinals first draft pick in 1997. You know how when guys get drafted they give them a hat with the team logo? Well, Tommy told me his first paycheck said minus $22 for the hat. They actually made him pay for the hat.
Crazy greedy nfl! I hate Roger Göddel. POS!
That's a total Bidwell move (owner family).
I could see the Bengals owner doing that except he would add the shipping cost to it.
Made me think of the scene in moneyball where the A's had pay vending machines in the locker room for the players and the David Justice character is absolutely appalled.
That is the Cardinals in a nutshell.
I remember when my Bears making the playoffs after a long drought in the mid-2000s. The media ask one of the players what is the best part of the playoffs. He replied with the extra checks" that when I learned that players only truly get paid during the season.
Imagine being in the the Patriots Staff getting those Playoff Checks on top of your Regular Pay.
SB bonus
For damn near 20 years strait
Or..now...the Chiefs!!!
The chiefs will probably win the superbowl again and this includes beating the bills
HEY JT! New to the QB school, and remember watching you and hearing your name growing up alot. It's great to see how you reinvented your self as an Athlete!, with this platform. Can you do a video that walks the viewers through the process of what happens to first round picks after they receive there signing bonus, and also how players today have transitioned into better business men and not end up broke!
Years ago I knew a CPA who somehow got a copy of a pay stub for the Giants' Lawrence Taylor. This was in the days before automatic deposits. He got a regular check/stub just like all the rest of us. Except with a ton more numbers....a ton more. Income and withholdings. And a neat Giants logo on the stub.
JT rookie contract with the saints was a 3 year 973k contract with a $68,000 signing bonus
Tyler can Google.
@@TheQBSchool is it just me or are you an ass to all of your subscribers
@@TylerHankss It's just your ass. DEAL w/ it.
@@TylerHankss Nah, he's just sarcastic.
My first time watching your channel, but I played WR at Davis so I’ll be sticking around. Your name was always thrown around.
Really interesting, and not as complicated as I thought it might be.
I liked your comment before the video thats how confident I am you're correct
Couple guys in nfl I know there checks are weekly and crazy glad they worked hard and proved many wrong
Thank you. That was very well done.
It still amazes me how many Professional athletes, mostly in NBA and NFL, are broke soon after they stop playing. A Budget and Finance class should be mandatory.
They do have classes now, it just depends on if the player takes the classes and puts into action what they learn
@@johnlewis8934 Agree. But since so many come from poverty or lower middle class, they are not used to having the nice lifestyle. It is after that first paycheck is gone does reality set in. But the folks around them don't want to hear that as they want more money. Then when the money dries up, they are gone. It is hard to build wealth when people are so dependent upon one person to be the savior instead of each person getting up doing something to greatly increase the chances that their life will improve and support each other.
Early 20s given big money. And most of Americans don't know how to manage money just because someone has a lot does not mean they know how to manage it. Now some players go broke from too much spending, partying and another one having too many babies with different women.
Why mandatory? You do you. If i want to blow $5mil on hookers and coke, who are you to tell me what i should and shouldn’t do.
Very interesting topic JT ! I was wondering how does it work when you get cut from the 90 person prelimenary squad to the 53 man roster ? Is everybody on a contract and if so is your contract voided, do you get a release fee, how does it work financially for the guys who get cut ?
Love the vids and keep them coming !!
depends on how the contract is for that player. Some may get cut, and the team pays out the rest of his contract. Some get cut, and thats it for there pay.
You have injury settlements. Also the player will only get whatever is guaranteed. You take most guys that get cut in the first round of cuts during camp they will only have at times a $3k or so signing bonus which is paid out right away. Then the only other money they would get would be whatever they got paid per week of camp they were there for. For an example looking on Spotrac on one team a player undrafted signed 3 years $2,850,000 contract with $20,000 at signing. He made the team but if he would have been cut only the $20,000 would be paid to him and whatever he earned from camp which is $1850 per week for first year and all veterans $3,200.
I watched a different video by someone else. He was given an old paystub from a former player. The guy was taking home $170k per week after taxes. If you can't live off that you need to fix a few things.
They take home $170k at the end of the week and immediately go to the club to blow $40k on bottle service. 😒
You’re right, BUT….imagine your 22 year old self getting paycheques like that and thinking they’ll be coming in that way for the next 10 years. For the first little bit, it would be hard not to be wasteful
Pretty much the same in MLB, my friends son was drafted by Detroit in the 5th round. 450k signing bonus was there the next day.
Except in the MLB and the NBA all of the money is guaranteed and they have to pay you even if you get hurt once you are signed.
@@gphillimo very true, minor league pay is a joke unless you can get assigned to the 40 man roster and play AAA
They need that because they have to work their way up the minors where they don't make much money.
Great video JT. I've always been curious how this works with the players. I also thank you for your time in Detroit.
Have you done a episode on super bowl rings? Who all gets one, what’s the cost, who decides on the design and how long does it take before you actually get it?
I’ve always wondered this. Great content bro. Keep it up, learn more from your channel than any other channel.
I went to school in Philly. Occasionally there’d be a story about a visiting high-paid NFL player and how much they would have to pay in city tax. John Elway comes to mind as a subject of one of those.
Love the content as always! Have you done any videos on cadence? I’ve always been curious as to how cadence is called in the huddle especially for qbs who use the “double cadence” for example white 80 white 80 set hut (No snap) blue 80 blue 80 set hut *balls snapped* are there sessions in practice just doing cadence?
there is a guy who did a video like this but on MLB pay . He called the pay they got in the pre season camp pay as " Meal Money " in a nut shell they only get paid for the meals . (roughly $20 per day )
I was always curious about how this worked in terms of players getting paid. Good info here.
appreciate vids like this. thanks🤘🏾
This so great damn who woulda thought Mike Shanahan had a wiser son 😂 would u put a explosion effect in the beginning to compliment the BOOM? lol
🤯💥
Its intresting that you say that there isn't much of a difference between the check if you win or loose a playoff game. I would have thought that if you win you get "two" checks at least (for the game won, and at least the next game win/lose because you made it to that round), but if you lose you only get that one check
Former Packer backup Great JT O'Sullivan
I was left with questions.
What percentage do the agents get?
What's an average salary and check in the NFL?
What's the pay for Pro Bowl?
Super Bowl winning team?
Super Bowl losing team?
Super Bowl MVP check?
Season MVP check?
Agents get how the contract is worded.
This was a good video. It also explains why Tom Brady is willing to take less money leaving money to sign other players. He knows that by winning not only in the regular season but in the playoffs and super bowl he's going to make his money back. Plus the more he wins the the more endorsements he's going to get.
Doesn't hurt that Giselle's net worth is $400 mil.
Facts...that's why I credit Brady more for the dynasty they had in NE. It's not necessarily what's he's done on the field (though he's no doubt an all-time great) and not to take away from the genius of Belichik. Belichik carried Brady early on with the defenses he fielded but the discounts Brady always took enabled Belichik to construct what he wanted on his terms to be good, year in year out. If Brady asks for his market value every contract, IMO I don't see the yearly SB contention playing out like it did. Then again, people can certainly be justified if they think the opposite.
Belichik AND the Patriot organization were extremely fortunate Brady didn't get top QB value during his prime playing years. He sacrificed some of his personal money to keep OR sign better players AND keep winning. The Pats were competitive during Brady's 20 year run. Giselle's money is great BUT it's not like he was getting paid one million dollars a season. The QB is the highest paid player on MOST NFL teams. He was compensated pretty good. REGARDLESS. He's not hurting. He wants to win. REGARDLESS. This is one reason he is the GOAT!
Also helps when his wife at the time was making 50 plus million a year
@@howelakeOne absolutely can’t deny that was a factor, but his playoffs bonuses and endorsements went a long way, too.
He looks like a mix of Alex smith and Kyle shannahan
Unlike Shannahan his videos are good even in the last quarter.
and Rich Gannon
Kyle shannahan
He is their secret love child.
Your absolute correct
JT, there were two points you didn't cover that would be interesting to know. One, the NFL Player Association fees (if any) as well as how the retirement program works. Two, some of these bi-weekly checks are huge thus Taxes are huge and with the compressed pay for a year over say half year means over paying taxes. How do players learn to handle this?
Seeing that alot of athletes go bankrupt they don't
I wish he would have broke down with numbers so people can see what he's saying if you follow
Right, Like he kept saying 2/17th's of your check. I was like just say when you sign your contract, you get a pile of money and then every week during the season, you get regular checks.
That's so enlightening nobody ever talks about this l can't thank you enough for your thoughts
I wonder if agent fees and things like that are automatically deducted or is that something each player has to do on there own?
Players have to do that on thier own
Growing up my next door neighbor was Scott Brocius…. Once we were old enough to understand, he showed us a pay stub from the athletics………..then later after winning the series with the Yankees………. Wow
a check for $20K would change my life
I’m watching this and I just get a notification saying the players are getting paid over 36 weeks instead of 17 starting this season
No you didn’t
They're trying to.
Emmanuel Acho and Marcellus Wiley were just talking about it.
Insightful.
th-cam.com/video/IGE90R8NaME/w-d-xo.html
First time hearing about the playoff checks
Back in the early 90s a Packers practice squad player stole a roster players check from his locker and either cashed it or tried to cash it, yeah he was caught. I believe the roster player was guard Rich Moran.
I remember when MTV Cribs was a thing and sport stars will show off their houses. Unless they're Lebron James or Carmelo Anthony in their rookie years, I doubt any of them will maintain the lifestyle of a $6 million dollar mansion, 5 luxury cars, and a million dollar home for their parents.
"Straight cash homie" -Randy Moss
😂😂😂😂😂🏉🏉🏉🏉 One of the most classic quotes in the history of Sports 🏉🏉🏉
Hey JT loving the videos man! Question. Do you pay state taxes when you play an away game (the other team's state)?
I believe they do. I remember seeing somewhere about a player picking a team based on how tax friendly their schedule was as far as home games + divisional games
Yes
why would they pay taxes? delivering the checks?
Yvng Reezy It is considered work when in another state.
you pay the tax in the state you play.
This was very interesting. Have you done a video on how the team salary cap works?
Where does the team revenue come from to pay the players regular season and playoff season? Where does the team or franchise revenue come from and how much?
I remember when you played for my Bengals. Who Dey
That's why its best to try to sign with a team that plays in a state that has no state tax.
This was a really great video on a topic I'd never dream of learning about. Thanks JT!
I thought the NFL brought in former players and/or financial advisors for the rookies so they could get a handle on how to manage their money?
They do. It's part of the rookie symposium. Individual teams will also have sessions for new players and rookies, even to the point of teaching them table manners (so they feel more comfortable and professional at business lunches and team events).
Did you listen to everybody when you were 21, 22? I didn't.
@@TheQBSchool I see your point. Hopefully some of the veterans will add to those pearls of wisdom.
@@Paldasan
Im sure all they heard was blah blah blah
Great Video! A lot of good information. Thank you for that! Just Curious on your opinion of Ohio State’s new QB Will Howard!?
Interesting content. Thank-you.
The original questioner asked about taxes, which is very significant; athletes don't net nearly as much as reported: the IRS' highest tax bracket (all income above ~$600K) is a whopping 37%. Assume state income tax averages to 5%. Agent gets 3%, according to one source. NFLPA dues average $31,000/year. On top of that, say a guy wants the nice car, house (and maybe buy mom a house), clothes, model girlfriend, then he might no longer be a millionaire, but, as one NBA player put it, "a high thousandaire." Back me up, JT!
My uncle does tax work for a company like H&R Block and he handles (is assigned) tax returns for random athletes, some NHL, some NASCAR, NBA, etc. He said they have to do tax returns for every state they played in or made money in, including if they go to Canada- Canadian taxes. I couldn't imagine keeping all that straight, mailing in 40 different tax returns.
Also he laughed when he said they send in ridiculous write-offs- things like a bottle of water, Subway sandwich, etc.
I think the tax can also vary based on where an individual game was played (where the work was being performed). If game is being played in Chicago, then both home and away team are subject to Illinois tax codes, etc.
@@j.e.7430 For the Illinois game the state of Illinois will charge 4.95% tax. This is what is actually owed for someone who also lives there. If you live in a non-income tax state like FL, TX, etc. you lose this 4.95% without any offset. If you live in a higher tax state like CA, NY, etc. you still have to pay the higher rate where you live but you receive a credit for the 4.95% Illinois charges.
I imagine when the owners put players salaries into the escrow account before the season starts is a drop in the bucket
How do taxes work? NFL players must pay state tax in all of the states they play in, correct? How does that work with the player's state of residence? Does that state also expect a cut?
They pay taxes in the states they play, plus pay taxes in their state of residence
The player ends up bearing the higher of the two rates. If residence is higher player gets a credit for tax paid to source state. If away state is higher residence state credit is limited to what the residence state would have charged.
Is there like an nfl office job where you aren’t playing in the game but involved with your team
Really informative
Aren’t signing bonus checks spread out over time? And now they manipulate the cap with voidable years on players contract. Like kicking the can down the road
Some. Not most.
The cap hit might be what you are thinking of with signing bonuses. THAT gets spread out over time - even though in most cases the money is paid immediately.
Seems like a silly question, but I've always wondered where they deposit their huge checks? Surely that's not going into a normal bank account, as a normal checking/savings account is only FDIC insured up to $250K.
I have a question about travel “meal” money. I had a friend who worked support in the NHL. He told me me guys receive an envelope of cash right before they get on the plane, for a road trip, according to how many days they’ll be gone and the amount of the per diem allowed in the NHLPA agreement. Is there such thing as that in the NFL?
Can we get a percentage breakdown of what goes where (taxes, agent fees, etc) with actual numbers?
My mom worked with a person who's wife was an NFL team employee. She was told the team paid all the players' bills and gave the remaining money to the players. They didn't want their players to be in the news for failing to pay child support, or having cars repossessed, or houses foreclosed, etc.
Im sure the player history agree to that. The Bengals did that with Chris Henry because he was very irresponsible and was getting into trouble
Good perspective
This is the sort of thing that warrants a trust fund to deposit the pay into, then get a weekly or biweekly stipend out of it like a regular paycheck for the full year.
Great information!!!!!
It’s the same in all sports. Think of how much money good NBA, NHL or MLB franchises make during deep playoff runs. Don’t have to pay the players but keep bringing in that revenue of ticket prices, at a much higher per ticket cost.
I think about the money I blew in the military. I was young and dumb on many occasions. Now, compound this by A LOT. I can only imagine what I would have done with that kind of pay. I wish players would invest at least 1/2, if not more, of their take-home pay. Many of them could live securely off dividends & interests for the rest of their lives.
Having games in Seattle, Texas or Florida must be circled on everybody's calendar and marked as "Christmas Bonus"....
Only if you live in one of those states. You end up paying the GREATER of your home/domicile state tax rate and the rate of the location where you play (source state).
Very cool video!
My homeboy was getting $7500/wk when he was on the practice squad. If/When he got put on the active roster he would make the league minimum which was like $45k a week. He got paid every Tuesday.
Hey JT, great idea for a channel! I have a two-part question for you, what do practice squad players make and what happens (salary wise) if a player goes on and off the practice squad?
They get paid a lot less. Then, they make minimum.
Great info, the monotone voice literally made me dose off twice, even though I was super interested in the content.
This is interesting and made me curious about the money doled out for SB winners. $164,000 each player and then whatever is leftover after taxes. More than what most make in a year--not bad.
1 question you did not cover : deduction : what kind of taxes and other deduction if any are taken out of a check and are you given a 1099 or W2 ?
Just think someone on Green Bay's or Buffalos practice squad vs. San Fran or Miami. Its still a good check ($200K +/-/year), but the rent $ difference between the cities, I imagine ps players share apartments in a lot of cities.
Here’s a question I’ve always had: what do the highest paid players actually DO with all that money ?? For example, if a player makes say $10M, his game check would be around $588K minus deductions. Obviously no one will spend that much money every week. Even if you live in a mansion and have 6 cars, you can’t burn through $588K x 17. What do they do with the millions per year that they don’t actually spend ? Is it stocks, bonds, real estate, bitcoin ? What’s the most common parking space for the money ?
Understanding that an NFL career is typically shorter than working in a factory setting, is there a retirement and if so, how long do you have to play to draw retirement?
You mentioned that taxes are deducted from their pay, can you expand on that?
If most players get less money for playoff games than regular season games, is it a common theme that players should get paid more in playoff games to better reflect a regular season game? Or would that create too much of an inequality between playoff and non playoff teams?
Wow, can't imagine what its like for Cleveland?
Cleveland players are the only ones who qualify for food stamps.
It seems more and more common to hear of controversies surrounding younger players wanting long term deals (like most recently Dak and Jamal Adams). Doesn't 4 or 5 years seem like too long a time to have to keep star players on cheap rookie contracts? 3 years sounds more reasonable.
Are players taxed the same home or road games. I heard depending on what state they play in, at the end of the year, they have file they have to pay taxes in that state.
State dependent
Don't forget when JT changes football teams it's time to change your furnace filter.
Very informative good thing
Damn, imagine not getting a paycheque from January to August
Can you do a video on how you think cam newton will do in the Patriots organization.
do NFL agents push in bonus schemes like in other sports? as a example through season you get 5+ sacks or a WR completes 30+ catches or you finish with best running yards in NFL season?
What happens when a player gets injured?
Very informative.
What is a player responsible for in terms of travel, hotel, meals. Are taxes taken out of each check or are you considered as contract labor / self employed?
Are contracts adjusted based on the local tax rates? What about sports where there are Canadian teams? Do you get paid in the local currency?
JT, What does the league to do help young players who receive large amounts of money at one time? I always hear stories about how players go through their money so fast without really having anyone to help be a financial advisor and show them how to budget their money. What are your thoughts?
So interesting. Is it true you pay state and local taxes based on where the game is played? E.g. different tax rate in CA vs FL. How does the huge difference in player salaries affect relationships on the team?
Yes
Why do players offen file for bankrupcy? Do players not manage their money properly ?
Sometimes it's not how they manage their money, it's how someone else does. There are stories all the time of financial advisors mismanaging their clients' money. And of course the obvious, people blowing the bag once they get it.
Very interesting.
So when they talk about the guaranteed money, is that additional to the salary or just a guaranteed portion of it and the rest is paid in game checks?
Signing bonus is separate from salary/game checks
@@daveg4236 So if somebody signs a $10 million contract with a $2 million signing bonus, they get $2 million when they sign and then $10 million/17 in game checks?
@@CJFloden 10m deal that includes 2m guaranteed. So now if it's a one year deal then take that 8m and divide by 17. But...looks like these comments are saying the checks are spread out different now. I don't pay attention.
Remember to chop that game check in half for taxes and an escrow that they pay into
@@daveg4236 ok that was my initial question. Thank you!
Really would have benefited from more detail. How much $ for workouts? For camp? Wish that stuff was translated. “A little...”, “A lotta...” money doesn’t convey much.
Thanks
you get weekley game checks 16 of them
Lot of information left out. How does pay work for players on injured reserve? What if a player is cut or traded after the season starts? Do they get playoff money if their old team makes the playoffs. How do state taxes work when you play road games in another state? Video was not very informative at all. On a 1 to 10 scale.... I'd give it a 2.5.
I keep seeing things like the net worth of NFL players being like $50 million is that true, do they actually make that much money?
Your net worth is your assets - liabilities. A big chunk of players assets is the actual cash money that’s in the bank. So I assume some nfl players net worth are that high. However, it’s probably a good estimate since we don’t know players other assets or liabilities.
Thanks J.T.!! Wondering about injuries if your injured and cannot play for X number of games do you still collect the same check? What if you blow out an ACL or something major and get sent to IR? Wondering if that changes your pay? Also is there a change in pay if you move up the depth chart or if you play in a game on the field v. on the bench? I know you mentioned roster bonuses not sure if that was what you meant. Appreciate the content and look forward to more to come.
Dude he said only garanatie is your singing bonus money. If you injured you dont get game check only team paid yours recovery.
He mentioned that some players do direct deposit.