On Friday, the Raiders owe Derek Carr the first money from his new $125 million deal -- a check for the first 10 percent ($12. 5 million).
Combined with an already earned roster bonus of $7. 5 million, due in September, and a $5 million salary, Carr will make $25 million total this season.
All told, Carr is guaranteed $40 million in the first nine months of the deal.
While NFL players always desire straight up, guaranteed money, Carr's deal presented a unique possibility to backload the contract, with the Raiders moving from California, the highest income tax state, to Nevada, circumstances with no income tax, by 2019 at the earliest.
Given the structure of Carr's deal, the move will save him approximately $8. 7 million in taxes assuming a 2019 move, according to Robert Raiola, a professional public accountant and cheap basketball jerseys director of sports and entertainment at PKF O'Connor Davies (see breakdown below).
Believe it or not, ncaa basketball jersey Carr stands to net more after taxes off a $20 million Nevada salary in 2019 ($11. 54 million) than he will probably take home from a $22. 5 million California salary in 2018 ($11. 15 million).
The $8. 7 million total Carr will save you in state taxes is no small portion of change, but he could've maximized his life of the loan by heavily backloading the deal. Instead, his contract's two highest annual affiliate marketer payouts come in 2017 and 2018, the first two years of his deal. Why? Well, one important things to remember is that the Raiders are the NFL's most cash-poor team as far as ownership goes. So Mark Davis may possibly not have been ready exchange minimal affiliate marketer payouts on the front end for huge cash outlays in 2019 and beyond.
Another wrinkle: A source familiar with the talks said the Raiders used the income college basketball jerseys tax savings to tell Carr that he's earning more while the team pays out less. college football jersey In other words, the tax differences between California and Nevada brought down the total value of the deal, while enabling Carr to get more money up front than the team originally wanted handy out.