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Oilers » Mike Green Opts out of Return-To-Play

Re: Mike Green Opts out of Return-To-Play [message #765477 is a reply to message #765443 ]	Sun, 16 August 2020 20:50

Adam
Messages: 6845
Registered: August 2005
Location: Edmonton, AB

6 Cups

Kr55 wrote on Fri, 14 August 2020 18:55

Adam wrote on Fri, 14 August 2020 16:24

Kr55 wrote on Fri, 14 August 2020 16:11

Adam wrote on Fri, 14 August 2020 15:44

GabbyDugan wrote on Fri, 14 August 2020 15:26

Adam wrote on Fri, 14 August 2020 14:42

Gator21 wrote on Fri, 14 August 2020 14:34

https://oilersnation.com/2020/08/14/edmonton-oilers-defencem an-mike-green-to-retire/

Aaaand now he's retired...thanks for the 2 games Mikey, glad we gave up a pick for that #onceanoileralwaysanoiler

Really though if you knew you were going out you wouldn't want to come back and take a crack at the cup? Or maybe he was just smart enough to know that we'd crap the bed early and not waste his time

Mike Green apparently has some family who's higher risk, so opted out for those reasons. Sucks for us, but I don't blame anyone for doing what they think is best for their family.

He will be 35 before the next season starts. Had a pretty decent career, but wasn't contributing a lot in his last season in either Detroit or Edmonton. Time to step aside for someone younger and hungrier.

Family should come first, and Green should have banked enough to take care of them

https://www.capfriendly.com/players/mike-green

I'm not nosy about anyone's financial situation, but I wonder how much of those career earnings of $67,429,626 went to agent fees, NHLPA dues, escrow, and of course taxes at every level.

Lots!

There's not a lot of ways to shield money as a professional athlete. Most of the player contracts for the various leagues are with the individual, not with a corporation for the player, which means that it's all salary. The tax authorities know exactly how much you make and which jurisdictions you make it in so it's pretty easy to tax them and for every jurisdiction they play in to take a little piece of the action:

https://hockey-graphs.com/2019/01/08/how-much-do-nhl-players -really-make-part-2-taxes/

If you live in Lloydminster, and you had a house on one side of the border and a cabin on the other side - you could choose to tell the government you made your earnings in Alberta or Saskatchewan, based on where you get more favourable tax treatment - and they're not likely to spend a lot of time trying to figure out whether that's correct or not. With a pro hockey player, since there's a schedule, it's waaaay easier for them to check.

The other downside of that for players is that if you pay your agent 3-5% (source - https://anderscpa.com/how-much-nhl-players-really-make/#:~:t ext=Agent%20fees%20generally%20range%20anywhere,of%20their%2 0take%20home%20pay.). If they could incorporate, you'd pay your agent with pre-tax money, and then either keep the money in the corp and get taxed there, or pay out to the player in salary and get taxed personally. Unfortunately, with the players getting paid by the team first - the player gets taxed on the gross, and then pays the agent fees - calculated on the gross - out of his after-tax dollars.

There's a significant amount of slippage, and then these guys also often live like rock stars while they're playing - burning a huge amount of what they earn, because they don't always appreciate how fast that comes to an end...

The two articles there are both interesting ones on this.

I recall an article after Tavares signed with the Leafs about how much easier it becomes for player accountants to play games to save their clients all kinds of money when a massive amount of the player salary is coming in as a signing bonus. With the tricks laid out, they estimated that Tavares, with a good enough accountant, basically took no hometown discount to play with the Leafs.

So if that's the same one I remember - it's a bit misleading:

https://www.forbes.com/sites/seanpackard/2018/07/06/john-tav ares-could-save-nearly-12-million-in-taxes-on-his-new-contra ct/#1e39e7f71ab7

Yes - there are ways to make it better, but most of them involve deferrals. The RCA option they discuss means that basically the Toronto Maple Leafs set up a trust for him, and he doesn't get the money until he's 65.

He's got to rely on the team setting up the trust and he doesn't really run the trust. It's a better strategy for a business owner - where he controls the company that controls the trust. I think that article is more of an advertisement for the services of the guy who wrote it, rather than actual strategies that Tavares used.

I think that's the one I recall as well. Was also this article in G&M where an accountant says he's done RCA's for a number of pro's on the Leafs and Canadiens.

https://www.theglobeandmail.com/investing/globe-wealth/artic le-how-pro-athletes-and-other-high-earners-stick-handle-high -canadian/

Article states that the NBA actually banned the Raptors from being able to use them, because it actually gives the Raptors an unfair advantage over the rest of the league. I suppose that is decent proof that it's pretty effective :)

Only says the players need to wait until retirement to access the funds, and it's good if they plan to retire outside Canada. I assume a pro athlete that retires in their 30's doesn't have to actually wait until they are 65 to get their RCA funds?

That is a good point - their retirement age comes sooner and their income drops dramatically when they do retire.

However, they're still getting no return on a big chunk of money that the team is putting in trust for them. If you're 10-15 years from retirement, are you really better off deferring the tax? Or getting the money and then putting it to work for you? You're paying SOME tax either way and if you get the money then you can invest it or spend it as you please.

Again - with the G&M article I do think the accountant is more concerned with getting business from high earning business owners than he is actually planning Tavares' wealth.

"Thinking that a bad team's best players are the reason the team is bad is the "Tambellini re-signing Lennart Petrell" of sports opinions." @Woodguy55
~~#FireLowe~~ #FireBobbyNicks #FireKenHolland #FireKeithGretzky

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Mike Green Opts out of Return-To-Play	By: smyth260 on Sat, 11 July 2020 17:41
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Sat, 11 July 2020 17:55
Re: Mike Green Opts out of Return-To-Play	By: Adam on Sat, 11 July 2020 20:02
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Sat, 11 July 2020 21:49
Re: Mike Green Opts out of Return-To-Play	By: Skookum Jim on Sun, 12 July 2020 02:24
Re: Mike Green Opts out of Return-To-Play	By: inverno76 on Sun, 12 July 2020 09:01
Re: Mike Green Opts out of Return-To-Play	By: CrudeRemarks on Sun, 12 July 2020 10:19
Re: Mike Green Opts out of Return-To-Play	By: Gator21 on Sun, 12 July 2020 12:25
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Sun, 12 July 2020 12:34
Re: Mike Green Opts out of Return-To-Play	By: Skookum Jim on Sun, 12 July 2020 19:47
Re: Mike Green Opts out of Return-To-Play	By: Adam on Sun, 12 July 2020 21:13
Re: Mike Green Opts out of Return-To-Play	By: Adam on Sun, 12 July 2020 21:17
Re: Mike Green Opts out of Return-To-Play	By: CrudeRemarks on Sun, 12 July 2020 22:46
Re: Mike Green Opts out of Return-To-Play	By: Adam on Mon, 13 July 2020 00:24
Re: Mike Green Opts out of Return-To-Play	By: RDOilerfan on Mon, 13 July 2020 06:27
Re: Mike Green Opts out of Return-To-Play	By: Magnum on Mon, 13 July 2020 08:27
Re: Mike Green Opts out of Return-To-Play	By: Adam on Mon, 13 July 2020 08:41
Re: Mike Green Opts out of Return-To-Play	By: Magnum on Mon, 13 July 2020 09:23
Re: Mike Green Opts out of Return-To-Play	By: Adam on Mon, 13 July 2020 12:07
Re: Mike Green Opts out of Return-To-Play	By: Magnum on Tue, 14 July 2020 07:04
Re: Mike Green Opts out of Return-To-Play	By: Gator21 on Fri, 14 August 2020 14:34
Re: Mike Green Opts out of Return-To-Play	By: Adam on Fri, 14 August 2020 14:42
Re: Mike Green Opts out of Return-To-Play	By: GabbyDugan on Fri, 14 August 2020 15:26
Re: Mike Green Opts out of Return-To-Play	By: Adam on Fri, 14 August 2020 15:44
Re: Mike Green Opts out of Return-To-Play	By: Adam on Fri, 14 August 2020 15:53
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Fri, 14 August 2020 16:11
Re: Mike Green Opts out of Return-To-Play	By: Adam on Fri, 14 August 2020 16:24
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Fri, 14 August 2020 18:55
Re: Mike Green Opts out of Return-To-Play	By: Adam on Sun, 16 August 2020 20:50
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Sun, 16 August 2020 21:06
Re: Mike Green Opts out of Return-To-Play	By: Adam on Mon, 17 August 2020 09:09
Re: Mike Green Opts out of Return-To-Play	By: Kr55 on Mon, 17 August 2020 12:44

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