The Bears signed their first overall draft pick. Caleb Williams Williams renewed his rookie contract today, and we’ve already reported on some of the interesting negotiating tactics he used throughout the process. Shortage of NFLPA-certified agentsinstead opting for a “board of directors” approach and Aiming to secure a no-franchise tag clause In trading.
But according to NBC Sports’ Mike Florio, It wasn’t the only tactic Williams pursued. Having already tried to set a new precedent with his no-franchise-tag clause, Williams also reportedly sought to break new ground on how rookie salaries are taxed. Williams’ father has worked in commercial real estate, offering his camp unique insight into the tax code.
One attempt by Williams’ camp reportedly was to try to pay Williams as an LLC. As a corporation, Williams would face different tax laws than an individual. There doesn’t appear to be any provision in the league’s collective bargaining agreement that would limit this approach. But the NFL ultimately made a blanket decision to reject Williams, telling the Bears that a player’s money can’t go into a non-personal entity.
In the second approach, Williams tried to mimic a forgivable loan on his rookie contract. In this scenario, Williams could receive the money tax-free until the loan was forgiven up to 10 years later. Again, on the advice of the league, Chicago ultimately rejected this option as well.
Other rumors have suggested the contract may have contained language that voided future guarantees, raising the question of whether the Bears would be entitled to offset money if they released Williams with any guaranteed money remaining and he signed with a new team.
Williams and his team made some very creative attempts to maximize the value of Williams’ new revenue stream. The Bears seemed willing to cooperate, but were repeatedly thwarted by the league. These attempts failed, but Williams may have paved the way for future first-round draft picks to have more room to negotiate their rookie contracts.
