Chem: Big Greg. How are you doing?
Greg: Hi Chem. How come your not golfing or fishing?
Chem: Iíve been fighting a cold for the last week. Anyhow, anything new on Danís stock purchase?
Greg: Itís only a formality but all I want to know is where are he and Artie getting 500 million?
Chem: I wonder if this will have an effect on contract extensions or signings?
Greg: I donít know if that will have anything to do with it. In fact it may help the Font Office be more reactive knowing where the debt is and now Dan and Art make all the decisions.
Iíll tell you one thing that is very big right now. NFL agents were sent an urgent memo this week from the NFLPA, requiring immediate attention to Federal Tax Code 409A. This provision, originally aimed at bloated executive compensation packages, potentially calls for a full tax burden on signing bonuses and future guaranteed money in the year the package is negotiated, even if the money is deferred over several years.
Chem: I never heard of this.
Greg: You can bet that the tax issue is a big thing right now in the NFL with the new Administration coming in.
Iíll send you an email with the memo coming down from the PA.
ďThis memorandum identifies an extremely important tax issue that may affect your player-clients and requires your immediate attention. The NFL has just informed the NFLPA that NFL clubs did not draft or amend many NFL player contracts in order to bring them into compliance with Section 409A of the Internal Revenue Code. As a result, many player contracts that include certain deferred compensation arrangements may not comply with the new tax provisions, thereby resulting in accelerated taxable income and/or an additional 20% tax, imposed on the player-client, unless the contracts are amended on or before December 31, 2008.Ē