When does the bill arrive at Deion's house?

[SoonerPatriot]

Sorry for another Branch topic, but now that the fines have accrued to well over 400k, I'm wondering when the Patriots can start asking him to cut some checks.
My guess is he doesn't have 400k lying around the house and it would be difficult for him to come up with the cash w/o getting a loan.

 

[RAWKY]

i do not believe he will get a bill.....Branch is owed between 1 million and 1.5 million this year under his contract with the Pat's

400,000 k fines and 69,000 per wk X 9 wks = 1.21 million

So if he returns for the tenth week he will play the rest of the season for about 300k or so.

Now subtract the taxes due on an income of 1.5 ,million and he will actuall be paying to play ball this year.

 

[SoonerPatriot]

i do not believe he will get a bill.....Branch is owed between 1 million and 1.5 million this year under his contract with the Pat's

400,000 k fines and 69,000 per wk X 9 wks = 1.21 million

So if he returns for the tenth week he will play the rest of the season for about 300k or so.

Now subtract the taxes due on an income of 1.5 ,million and he will actuall be paying to play ball this year.

Someone posted earlier that they can no longer fine him each day once the season begins but they can withold his game checks.

 

[RAWKY]

Someone posted earlier that they can no longer fine him each day once the season begins but they can withold his game checks.

Yes that is why i put the 69K a week time 9 weeks which has been posted as his weekly income if he was playing.

 

[JustWinBrady]

i do not believe he will get a bill.....Branch is owed between 1 million and 1.5 million this year under his contract with the Pat's

400,000 k fines and 69,000 per wk X 9 wks = 1.21 million

So if he returns for the tenth week he will play the rest of the season for about 300k or so.

Now subtract the taxes due on an income of 1.5 ,million and he will actuall be paying to play ball this year.

Please correct me If I'm wrong, but how does branch have an income if he is not playing the first 9 weeks?

If he comes back in week 10, he can play in 7 games and earn a paycheck.
7 games x 70 k = 490,000 then minus the taxes.
400,000 fines
Branch would make ~0 for the season.

Also, I believe the Pats can go after 1/5 of branch's signing bonus which is ~ 200K.

 

[RAWKY]

Please correct me If I'm wrong, but how does branch have an income if he is not playing the first 9 weeks?

If he comes back in week 10, he can play in 7 games and earn a paycheck.
7 games x 70 k = 490,000 then minus the taxes.
400,000 fines
Branch would make ~0 for the season.

Also, I believe the Pats can go after 1/5 of branch's signing bonus which is ~ 200K.

Well the Pat's have to cut the checks less the fines and less the weekly amount not due because he is not showing up for work.

This is a contractual obligation and the Pat's will cut the checks and then do the deductions so they have a paper trail that they in fact fulfilled there part of the contract.

As far as the IRS is concerned it is earned money and taxes are due because the Pat's cut the checks and then deducted the owned amounnts.

I do not know if the fines are deductable under IRS regs. IF they are it is a wash. If they are not then Branch gets to pay the fines and the then the taxes on the fines to boot.

It would depend on whether or not the IRS considered the fines a business expense.

Branch may not in fact have to pay the taxes on the income withheld because he did not show up for work but he would have to file to get any money held out back.

 

[teamplay]

just imagine what his legal fees are going to add up to by the time this is over...what he's doing seems nuts to me...

 

[smg93]

I started a thread earlier on this and the calculation of 14k per day ended when TC ended. At last count, those days he missed amounted to about 532 thousand dollars (that's 38 days * $14,000).

He is scheduled to make $1.045 million this year which equates to $65,312.50 per game. If he misses 9 games that will come to $587,812.50.

To summarize:

Salary of $1,045,000 minus $532,000 in penalties less $587,812.50 would come to ($74,812.50).

In other words if Branch held out till game 10, he would owe the patritos almost $75,000.

 

[patchick]

i do not believe he will get a bill.....Branch is owed between 1 million and 1.5 million this year under his contract with the Pat's

400,000 k fines and 69,000 per wk X 9 wks = 1.21 million

So if he returns for the tenth week he will play the rest of the season for about 300k or so.

Now subtract the taxes due on an income of 1.5 ,million and he will actuall be paying to play ball this year.

It seems to me that there's a difference between a fine and docking a paycheck. By simply subtracting the amount owed from the player's check, you're letting him pay with pre-tax dollars. You're also giving him greater time value of the money the longer he holds out, since you can't dock a paycheck until he earns one.

If--it's a big if--the Patriots are determined to seek the fullest financial sanctions, I think they send him a bill.

[edit: looking back, i think rawky covered some of this, sorry]

 

[Pujo]

He wouldn't have to pay income on money he's fined. The fine is a witholding, by being fined he is being paid less, and his tax liability would also go down.

 

[VrabelMayeWin]

I wonder how he'll feel on Sunday when his former teamates are out there busting their asses without him - and on Monday when he doesn't get a paycheck.

 

[Pat the Pats Fan]

I would think the fines are not coming out of pre tax income like a 401K.

Paychecks should have all of the deductions taken out. The fines would be on the net income. Result, the Twig will need to pay the Patriots to receive his pay stubs which will show a negative amount after the $532K in fines are levied.

So how is that working out for you?

 

[Pujo]

If you have a job, and you don't show up for three days and your employer docks you, do you still owe taxes on the full amount? No. This is a fine for missing work, it's a reduction in income, not a late-hit fine that has nothing to do with work-for-hire obligations.

 

[patchick]

If you have a job, and you don't show up for three days and your employer docks you, do you still owe taxes on the full amount? No. This is a fine for missing work, it's a reduction in income, not a late-hit fine that has nothing to do with work-for-hire obligations.

I think there are two different issues -- fines and missed game checks. The missed checks simply mean less income, and you don't pay taxes on money you ever earned. But the $14k daily fine is unrelated to your salary, and last month Florio (who is a lawyer, fwiw) claimed those payments are after-tax.

If all that's true, couldn't Deion get $500k in salary from the team, get a bill from the team for $500k in fines, and still owe the IRS for his $500k salary? The fact that he chose to blow half a mil on fines doesn't concern the IRS, any more than if he blew it all on anything else.