Football player agent compensation

If player X gets a four year 20 million dollar contract with 10 million guaranteed, how much does the typical agent get and when does he get it? DOes he get a one time lump payment, or does he get a percentage every time the player gets a check. Does he get paid directly or does the player pay him out of pocket? If the player is fined does the agent lose anything? If a player skips a game and forfeits a game check does the agent lose.

Also, in a certain {censored} situation is the agent's a$$ hanging out there along with the players from a financial perspective or is said player going it alone, money-wise. Could there possibly be a situation where the agent is in a win-win situation because the agent loses nothing if the player is fined but wins if the player gets more money or other money sooner?

This is NOT about players, it's about the in's and out's of agent financial compensation, especially in non-standard situations.

Great question, I will be monitoring this....well you know the rest

Excellent question.
I have been wondering about that because of the Kam situation.

I don't know for sure but if I was to wager a guess, it would be that each player/agent contract has its own stipulations.
Compensation would certainly be one of them.

It is a great question. Hopefully somebody knows the answer.

Pmedic is right that different agents have different rates. The standard is 3%. I don't know how it's paid out.

I know in baseball the agent gets a percentage of the signing bonus up front and is paid each game check.. I only know this because my friend plays professional baseball.

I assume it's the same in all sports.

The agent gets paid when the player gets paid. When money goes into the player's pocket they get their percentage.

I heard a crazy stat once that in real terms, after agent fees and taxes players only realize half their actual contract dollars. Whether that's true or not I don't know.

rastahawk":1vqxefbe said:

I heard a crazy stat once that in real terms, after agent fees and taxes players only realize half their actual contract dollars. Whether that's true or not I don't know.

Click to expand...

Look at their tax bracket.

Basis4day":1d6v9ms7 said:

rastahawk":1d6v9ms7 said:

I heard a crazy stat once that in real terms, after agent fees and taxes players only realize half their actual contract dollars. Whether that's true or not I don't know.

Click to expand...

Look at their tax bracket.

Click to expand...

Exactly.


Take their 39.5 federal, add agents 3% to start. Then add in any state tax (usually 3-8%) or municipality taxes and you're already darn near 50 percent. This doesn't include property taxes and I know most athletes have pretty expensive homes.

All that said, I wish I was in their tax bracket.

rjdriver":3n2nkk5j said:

Basis4day":3n2nkk5j said:

rastahawk":3n2nkk5j said:

I heard a crazy stat once that in real terms, after agent fees and taxes players only realize half their actual contract dollars. Whether that's true or not I don't know.

Click to expand...

Look at their tax bracket.

Click to expand...

Exactly.


Take their 39.5 federal, add agents 3% to start. Then add in any state tax (usually 3-8%) or municipality taxes and you're already darn near 50 percent. This doesn't include property taxes and I know most athletes have pretty expensive homes.

All that said, I wish I was in their tax bracket.

Click to expand...

The thing that really surprised be is the Base Salary State Tax (Players get their base salaries in 16 installments on game days). It's taxed in whatever state the game is actually played, not the state the team is based out of.

Yea Basis...I think they treat it as going to work in that state for a day. I recall when last year Phil Mickelson was looking at a tax system and he paid more in taxes in Cali than he made bottom line. I think it was 39% plus 18% or some such. Not worth it to go to work then.

Usually 3% of each payment they receive from the team.

90%+ of agents charge 3% and they get paid when the player does so it's along the way throughout the contract.

So in Kam's situation when he may have to pay the Seahawks at the end of the year, the agent won't get a thing.

If math is correct. 1.2 mil (training camp), 2.67 (10 gms), 500k recoup from signing bonus = more than base salary

Can you imagine? Sitting 10 games, playing 6 plus the playoffs (hopefully) and having to pay your team money? All the while letting your organization, teammates and fans down to a major degree?

This is the most asinine holdout I've ever seen. There is no good result for Kam in this. He never had leverage and yet the FO still made concessions when they really shouldn't have and he still didn't take it.

Kam may be a smart guy, but he's stubborn and ignorant in this situation. "Leave it all up to god"?, please... Take some personal accountability.