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Charitable contributions -- questions for Miguel

Discussion in 'PatsFans.com - Patriots Fan Forum' started by Mike the Brit, Jul 6, 2006.

  1. Mike the Brit

    Mike the Brit Minuteman Target PatsFans.com Supporter

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    I noticed a story the other day (perhaps in ProfootballTalk) that Reggie Bush had made contributions to a couple of local charities in New Orleans. The money did not come out of his pocket but from funds that were paid to his charitable foundation as part of his contract.

    My questions: is this common? and, does such money count against the cap?
     
  2. bradleybliss

    bradleybliss Rookie

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    It is an IRS thing that enables the player to protect some of the money in their contract - it helps the team as well because it promotes good PR for the new player with their fan base. It is a very good thing for everyone.
     
  3. MoLewisrocks

    MoLewisrocks PatsFans.com Supporter PatsFans.com Supporter

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    I'm pretty sure any money a team pays to a player counts against the cap. Otherwise guys like Snyder would have abused the heck out of such a loophole over the last 5 years. There can't be anything going from Reggie's contract going to a charity yet anyway since he hasn't even signed a contract with the Saints. The contract from which money is currently going to his foundation or matching contributions he makes locally is one with a corporate sponsor he has already signed an advertising deal with. And those kinds of arrangements are common.
     
  4. Mike the Brit

    Mike the Brit Minuteman Target PatsFans.com Supporter

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    Thanks to you both.

    You must be right, Mo. I imagine all charitable contributions would be tax-deductible anyway, so there wouldn't be any advantage in having your contribution earmarked, and, as you say, ambitious high-revenue owners would try to use it as a way around the cap.

    I've just done a Google search and found an article in the Times-Picayune that confirms this:
    Since being drafted in April, the No. 2 overall pick has teamed with his sponsors to give $50,000 to Holy Rosary Academy and High School and $86,000 to help seed the field at Tad Gormley Stadium, and to lend 12 Hummers to the Slidell Police Department for another year.
    http://www.nola.com/sports/t-p/index.ssf?/base/sports-24/1151906480103650.xml&coll=1
     

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