Confirmed Signing with Link: [ANA] F Frank Vatrano signs extension with the Ducks (3 years, $4.57M AAV; $9M deferred salary)

[Crazy8oooo]

like the tweet in the op says it wont be taxed at the same rate.

Long term investment is taxed differently but the IRS will still get theirs.

 

[Pablo El Perro]

Long term investment is taxed differently but the IRS will still get theirs.

The IRS will, but California not so much

 

[190Octane]

Long term investment is taxed differently but the IRS will still get theirs.

Tax brackets are a thing.

Getting taxed on only 900k per year 10 years from now means you pay a lot less than 50% on everything now. The effective rate will be much lower, especially without 12% state tax on top.

 

[Trojans86]

I would bet that the deferred money is put into a trust where it is the end invested in securities and grows in value

 

[Crazy8oooo]

The IRS will, but California not so much

Living in CA, I am happy for that. They take every little bit they can out of us so screw them. Not sure I’d call that tax circumvention though when he’ll be responsible for paying his taxes on it when he collects it…just won’t likely be to CA.

 

[Pablo El Perro]

Living in CA, I am happy for that. They take every little bit they can out of us so screw them. Not sure I’d call that tax circumvention though when he’ll be responsible for paying his taxes on it when he collects it…just won’t likely be to CA.

It's just a loophole. People take those

 

[Daz28]

What the f***? lol. Okay. Well congrats to him.

edit - just looked at this contract structure, he's a smart man! That's how you plan for the future. But at the same time he could have just invested that money all now and in 10-20 years it would be worth much more than the 9M. But either way, I like it.

Not sure you're looking at this the right way. He likely wouldn't have received that amount now, so basically, Samueli is the one betting he can make that money back with investments. It's a win-win for both, and a loss for CAL taxes.

 

[chizzler]

Living in CA, I am happy for that. They take every little bit they can out of us so screw them. Not sure I’d call that tax circumvention though when he’ll be responsible for paying his taxes on it when he collects it…just won’t likely be to CA.

The company is in CÁ. He most certainly will pay those taxes. And at this rate, it might be higher.

 

[Nemesis Prime]

Only based take

 

[Pablo El Perro]

The company is in CÁ. He most certainly will pay those taxes. And at this rate, it might be higher.

Because he's taking it over 10 years, there is a loophole with the deferred compensation. In this case, he'd be paying taxes in the state in which he resides at that time.

 

[NWWisconsinDuck]

Nice 2 point first period for Frankie after signing the new deal

 

[Crazy8oooo]

The company is in CÁ. He most certainly will pay those taxes. And at this rate, it might be higher.

If he’s not living or working in CA when he collects it, it doesn’t get taxed in CA.

 

[Mattb124]

This is the future of sports deals until new CBAs try and crack down on them. High tax states should all be doing this.

California’s Franchise Tax Board will tackle this before a new CBA does, if they haven’t already . Tax code already exists that won’t allow you to leave CA, establish residency in another state, and pay state income tax solely on the basis of your new state of residence (the concept is called “California-source Income” and includes wages and salaries - https://codes.findlaw.com/ca/revenue-and-taxation-code/rtc-sect-17951.html).

 

[Daz28]

I would bet that the deferred money is put into a trust where it is the end invested in securities and grows in value

If the owner were not a billionaire, I could see that. The way I'm looking at it, the billionaire can likely make a lot of that money back in investments before he ever has to pay even one cent of it out. Basically a very low cost margin loan. The player will still get his guaranteed money. The only ones getting screwed here are the State of California and the fans of teams whose players won't agree to this, because their agents/players are too dumb to realize that a billionaire is going to do a lot better investing than the players broker likely ever could.

 

[Korpse]

Advice for investing ?

If you come into $4,000,000 don’t put it in a high interest savings account.

 

[Coffee]

If you come into $4,000,000 don’t put it in a high interest savings account.

What should we put it into?

 

[Pablo El Perro]

What should we put it into?

My pump and dump!

 

[Coffee]

My pump and dump!

@The Crypto Guy guide us

 

[Daz28]

@The Crypto Guy guide us

If you think stocks are risky, then maybe stay away from investments that have zero revenue. Anyways, not trying to derail this into an investing thread. There's already an investment/crypto section/threads.

 

[crowi]

I love that teams like the Ducks that can't front-load deals and make them buyout-proof, have at least some way to attract players. Teams like TO and NY can't even imagine the advantage they have.

 

[LuGBuG]

I’m shocked at how many financial experts we have. It’s pretty impressive.

 

[Andrei79]

The moment a Canadian team does this is when the league will step in.

 

[Rec T]

Nice 2 point first period for Frankie after signing the new deal

And an empty netter to seal things. Quite glad that he's sticking around.

/and if the financial side of things work out for everyone, more power to him & the team.

 

[LuGBuG]

Swiss Army knife type player. Glad he’s sticking around. I don’t really give a crap about the details of a contract for a millionaire that’s paid by a billionaire. Cap hit is all that matters.

 

[Leafs87]

Assume the NHL will overturn this?