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.
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:
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.
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).