Caleb Williams’ team made unconventional and unconventional requests for his rookie contract: Report Originally appeared in NBC Sports Chicago
After several reports revealed on Tuesday night that Bears rookie Caleb Williams had signed his first NFL contract, Pro Football Talk’s Mike Florio debunked those reports, reporting that had not signed his contract.
Why? Florio reported Wednesday that Williams’ team was haggling with the Bears over the final wording of his first contract. Part of that negotiation, according to Florio, included an attempt to keep the franchise tag off Williams’ contract after his fifth season with the team presumably ends. The Bears refused.
But it didn’t end there. After the The Bears announced that Williams signed his contract, Florio revealed Williams’ group made other attempts to help the rookie quarterback earn tax-free money.
According to Florio, Williams’ team tried to convince the Bears to pay Williams as an LLC. In Illinois, LLCs have no tax reporting requirements, meaning Williams would not have to pay taxes on his four-year contract worth $39 million.
Another attempt by Williams’ group was to secure a forgivable loan, which would have resulted in “Williams receiving the money tax-free until the loan was forgiven, meaning up to 10 years later,” Florio said.
The Bears, according to Florio, went to the NFL with both proposals and found no evidence that they were invalid in the NFL’s CBA.
But the league rejected both proposals.
The NFL told the Bears player that the money cannot go to a business entity other than the player, according to the report. No reason was given for why the league ruled out the idea of a forgivable loan.
The clauses Williams’ team proposed could have been historic. No rookie NFL player has ever included a clause in his first contract that precludes the possibility of a franchise tag in the future. And no player has ever received a payment in the form of an LLC or through a loan.
The ideas were creative and original. It doesn’t hurt that Williams’ team tried, either. Williams is a well-known businessman who tries to surround himself with the best business minds available. His father, Carl, also worked for years in commercial real estate.
There could have been consequences if Williams had not signed before the Bears’ first training camp practice, which was held Saturday. If he hadn’t signed before then, he wouldn’t have been eligible to participate.
But the Bears accomplished their goal without guaranteeing Williams anything that might have made the deal risky.
