Chicago Bears rookie star quarterback Caleb Williams finally signed his rookie contract this week after a long delay. It seems that the delay is a result of the rookie attempting some rather creative tax strategies, but the NFL seems to have shut them down.
According to a report from NFL insider Mike Florio of Pro Football Talk, Caleb Williams tried some interesting strategies to limit the amount of tax that he paid on his income.
“For example, multiple sources tell PFT that there was an attempt to get Williams paid as an LLC. The Collective Bargaining Agreement doesn’t seem on the surface to foreclose that approach. However, the league decided that it does. The Bears were told by the NFL that the player’s money can’t go to a business entity other than the player,” Florio wrote for Pro Football Talk.
“Another approach emerged from the concept of a forgivable loan, which would have resulted in Williams getting the money tax free until the loan was forgiven, as many as 10 years into the future. The Bears, through the NFL, also nixed that possibility.”
Ultimately, it seems like those strategies fell through as the NFL refused to allow him to pursue those creative tax strategies. As a result, he will simply have to take his paycheck and pay his taxes just like everyone else. But you can’t fault him for trying.
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