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-   -   Hypothetical players contract - how much does a player really net? (http://hfboards.hockeysfuture.com/showthread.php?t=1273519)

littletonhockeycoach 10-20-2012 11:59 AM

Hypothetical players contract - how much does a player really net?
 
There are a lot of smart and really well informed people on this forum so I'd like to start a discussion about what a high (+$4M/season), middle ($1 - 4M) and low (league minimum) contract really nets a player after all his costs, fees, insurance, union dues, agent cost, publicist cost, the adjustment for the CBA revenue, etc. are included.

Let's include taxes, FICA, Medicare, Health Ins and stuff like that too since I believe they are subject to the same rules as the rest if us.

And let's not forget to add in their portion of the escrow.

Or to make it easier, let's just pick one Sabre. Maybe, Ryan Miller....... He was supposedly paid $6,250,000 per season in 2011-12. I guess that's his gross. But what's he really net from that?

In other words, what's his take home pay?

And is he paid monthly? Per game a la NFL or is it escrowed? I dunno?

I'd sure like to put their compensation in terms of something meaningful to me who it took a couple of decades to gain a modest income.

If this type of info or discussion is recorded somewhere else on this board, let me know what thread or site to look for/at. Thanks.

Woodhouse 10-20-2012 03:11 PM

An NHLPA Certified Agent/Agency likely assists represented players in more areas than contract negotiation, ie. financial planning, tax and estate planning, insurance, PR, marketing and endorsements, etc., so their percentages are probably variable and take larger percentages from endorsements than the actual contracts. In a quick search I found that the NFL (<=3%) and NBA (<=4%) have limits on fees taken from player contracts, but nothing immediately on the NHL.

***

The NHLPA conducted its Executive Board Meetings on June 25, 26, 27, at the Peninsula Hotel in Chicago. I believe that the rate for union dues in this lockout year would have been decided upon at these Meetings:
Quote:

ARTICLE XIV
DUES

Section 1. The Executive Board, at one of its annual meetings shall fix for the following year the rate of annual dues for Members of the Association. Special assessments may be levied upon recommendation of the Executive Board and ratification by a majority of the voting Members in good standing.

Section 2. A Member who fails to pay or authorize the payment of his dues shall automatically be suspended from the Association and shall lose all the rights and privileges of membership. A service fee will be deducted from each NHL player's salary even if the player declines membership in the Association. Said fee will beequal to the annual dues of the Association.

Link: http://www.nhlpa.com/docs/about-us/n...nstitution.pdf
Idk if that rate ever becomes publicly available or not, but again, I didn't look too hard for it.

***

For the calendar years of 2011 and 2012, the employee's share of FICA was reduced to 4.2% of gross compensation, with a limit of $106,800 for 2011 and $110,100 for 2012.

***

The employee's share of Medicare is 1.45% of wages, with no limit on the amount of wage subject to the Medicare tax.

HockeyH3aven 10-20-2012 03:35 PM

Having spoken to the agent of quite a few buffalo bills (Chris Kelsay, Terrence McGee, Brian Moorman, Coy Wire at the time, etc) the industry standard agent fee is 3% of the contract's value.

He couldn't say for certain it was the same in the NHL or NBA, but he was pretty certain it wouldn't change more than a percentile each way.

For the amount of money they make, I'd imagine the effective income tax rate is probably right around 30% based on 2009 data from taxfoundation.org

As for the frequency of pay rate, I can't be exactly sure. I'll have to ask our finance manager. We've sold quite a few cars to Sabres players so he might have access to some financial data (ala pay stubs).

SackTastic 10-20-2012 03:58 PM

Fairly sure NHL players are paid twice monthly.

McTankel 10-20-2012 04:10 PM

Quote:

Originally Posted by Beechsack (Post 55140831)
Fairly sure NHL players are paid twice monthly.

I can confirm this. Not telling you how I know though. :laugh:

New Sabres Captain 10-20-2012 04:23 PM

Quote:

Originally Posted by Awwufelloff (Post 55141053)
I can confirm this. Not telling you how I know though. :laugh:

Hamburg...hmm...

Patrick Kane? Is that you?

littletonhockeycoach 10-21-2012 01:24 AM

Quote:

Originally Posted by Awwufelloff (Post 55141053)
I can confirm this. Not telling you how I know though. :laugh:

Lol!

I assume that paydays happen only during the regular season?

Also, does a player's travel per diem (meals, lodging travel, expense $$) count as income (i.e. subject to taxation)?

ZZamboni 10-21-2012 10:02 AM

Quote:

Originally Posted by GrigsAndGirgs (Post 55141287)
Hamburg...hmm...

Patrick Kane? Is that you?

No, it's Tim Kennedy. Oh how he longs for those days :laugh:


Either that or he's just another "I know something but I can't tell you how" types. :biglaugh:

Dime a dozen.

HiddenInLight 10-22-2012 06:49 AM

Quote:

Originally Posted by GrigsAndGirgs (Post 55141287)
Hamburg...hmm...

Patrick Kane? Is that you?

He is clearly Terry Pegula.

Duddy 10-22-2012 08:40 AM

Quote:

Originally Posted by HiddenInLight (Post 55183389)
He is clearly Terry Pegula.

Nope, that I know for sure, because I am Mr. President Big Daddy Ted.

McTankel 10-22-2012 01:21 PM

Quote:

Originally Posted by GrigsAndGirgs (Post 55141287)
Hamburg...hmm...

Patrick Kane? Is that you?

No I wish haha! I just know for a fact that they get paid twice per month. :laugh:

rabi 10-22-2012 01:53 PM

Quote:

Originally Posted by Awwufelloff (Post 55188387)
No I wish haha! I just know for a fact that they get paid twice per month. :laugh:

Someone works at Paychex or ADP?


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