TE Matt LaCosse Opts Out

luuked said:

How does any regular person ever pay off a loan ?

Why would the team look bad for doing exactly what was agreed upon with the NFLPA ?

There was an agreement between the league and the union about that 150k advance and I don't see why any team (or the league) should be upset about players opting out the same way that I don't see why anyone should be frustrated when that advance is collected back next year.

It is business.. for both sides.

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It's not a loan. If the Patriots simply lent him $150k, then he wouldn't have to pay taxes on it, unless he didn't pay it back. If this was a loan that was due next year and he didn't pay it back then he would get a 1099 for 2021 and would have to declare it as a loan forgiveness, which would make it subject to income tax.

Spiral said:

It's not a loan. If the Patriots simply lent him $150k, then he wouldn't have to pay taxes on it, unless he didn't pay it back. If this was a loan that was due next year and he didn't pay it back then he would get a 1099 for 2021 and would have to declare it as a loan forgiveness, which would make it subject to income tax.

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The tax situation is completely irrelevant for the discussion. Not sure why you keep focusing on that.

Spiral said:

It's not a loan. If the Patriots simply lent him $150k, then he wouldn't have to pay taxes on it, unless he didn't pay it back. If this was a loan that was due next year and he didn't pay it back then he would get a 1099 for 2021 and would have to declare it as a loan forgiveness, which would make it subject to income tax.

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You are not wrong, but I think your explanation is a bit difficult to follow.

The player has to pay taxes on the $150k in 2020 at 24%. If the player pays the $150k back in 2021 the player can write off the amount against any income he has in 2021. Most likely the team will just pay him $150k less in 2021 so there is no repayment. If he is cut in 2021 and does not have income in 2021 and the $150k is repaid in 2021, the taxes paid in 2020 will be returned to the player because he files a $150k loss in 2021. Depending on other income, the $150k is taxed at 24%, and if his contract is at $500k+ the tax rate of 37%, so $150k is like a loan with a 13% tax savings included.

It is not as clear as you state as no tax situations are. I am sure the agents have the opt-out financial considerations figured out for each player depending on their present contracts. The person who makes money for sure is the tax CPA.

How the hell are the pats going to find a way to make up those 131 yards per game he provided.

*Double check stats*

No wait that was that 131 yards for the entire season.

One-If-By-Sea said:

You are not wrong, but I think your explanation is a bit difficult to follow.

The player has to pay taxes on the $150k in 2020 at 24%. If the player pays the $150k back in 2021 the player can write off the amount against any income he has in 2021. Most likely the team will just pay him $150k less in 2021 so there is no repayment. If he is cut in 2021 and does not have income in 2021 and the $150k is repaid in 2021, the taxes paid in 2020 will be returned to the player because he files a $150k loss in 2021. Depending on other income, the $150k is taxed at 24%, and if his contract is at $500k+ the tax rate of 37%, so $150k is like a loan with a 13% tax savings included.

It is not as clear as you state as no tax situations are. I am sure the agents have the opt-out financial considerations figured out for each player depending on their present contracts. The person who makes money for sure is the tax CPA.

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Agree that it's a relatively simple matter if he's on the team in 2021. However, let's face it--that's extremely unlikely. So in 2021 he will owe the Patriots $150k. Yes he will get a credit on his 2021 taxes that he will file in 2022, but the issue is that he most likely won't have the cash to pay back this $150k a year from now.

Jordan Reed signs with SF 49ers.

Triumph said:

Jordan Reed signs with SF 49ers.

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I want to say Reed hasn’t played a meaningful down in the NFL since RG3 was the starting qb for Washington. Think about that, that was a long time ago, always wondered how some people get so enamored by what he did 7 years ago? I feel for these players that have been concussed and injured so many times. But htf does this guy keep getting signed and receiving paychecks? He should of been medically retired years ago, atleast from an outsiders opinion.

Patriot Missile said:

I want to say Reed hasn’t played a meaningful down in the NFL since RG3 was the starting qb for Washington. Think about that, that was a long time ago, always wondered how some people get so enamored by what he did 7 years ago? I feel for these players that have been concussed and injured so many times. But htf does this guy keep getting signed and receiving paychecks? He should of been medically retired years ago, atleast from an outsiders opinion.

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Yes

Delanie Walker is no prize either. I would like a young Njoku because I believe that he has untapped potential and he is relatively healthy.

I heard of Matt LaCosse's opt-out while on vacation this week at the Cape.

Damn shame, I was really expecting big things from him this season...