Repost: What did MB really get?

Was just thinking. What did Bumgarner really get? I know that the true figures are in a bag. Just thought it would make for good convo. I'm not all there. I just we would need to look at it this way...
1. Regular salary as a player?
2. Signing bonus?
3. What did the agent get?

Here is what I got from the suggested 2 million signing bonus. Now this is not at the bonus rate that we pay. This is just on two million.

Your Pay Check Results Annual Gross Pay
$2,000,000.00Federal Withholding
$678,392.00Social Security
$6,045.00Medicare
$29,000.00North Carolina
$158,883.00 Net Pay
$1,127,680.00

Still a nice pay check for 18.

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wouldnt the state tax be payed to California???

 

It should fall to your state of residence. Not one hundred percent on that. When I was in the military state tax was NC. I was stationed in Cal, Fl and Va.

 

One thing for sure, he's in a different tax brackett. However a million in cash doesn't go near as far as it used to. If he could bank most of that and not touch it his retirment would be taken care of. Bank say, 900K and invest it for 40 years. He'll be fine.

 

Although I believe that would be a close figure, he would get less than that. First, his tax level will change, therefore he loses more money than us "regular" folks! Secondly, he will lose a percentage of that to his advisor/now agent. I have heard numbers as high as 15-25%, but I don't know for sure. So, assuming in the tax level he would qualify for he would lose a minimum of 1/2 of his salary, therefore keep about 1 mill. So, if the agent did take 15% then MB would keep 850K.

As for banking the money, he won't make enough in the minors to live so he'll need to use some of that to live until he gets to the show. Did he get a big league deal? If so, then no worries. If not, then he'll definitely need to watch his money, sadly enough. I know of a couple guys that signed for 1.5 mill + and they've gone through it all. One is still in the show and doing very well, but without his contracts he's signed since he'd be broke. The other has been released and is broke. So, all these young guys need to watch their money. They are getting a HUGE jump on life being handed this amount of cash to do what you love, although it is a job now.

Lastly, why do players always get agents? I would think, from my limited knowledge of the pro scouting process, that advisors usually scare off scouts. Maybe not scare them off enough to not draft the player but enough to drop them some spots. But, I also have seen the ones that wouldn't get the money they got without their agents (R.Porcello). My question is this, why not just represent yourself and when drafted and offered a contract, pay a lawyer to read it and make sure it's legit and no tricks involved? Just me wondering I guess.

 

Sheffield went without an agent when he negotiated with Steinbrenner.That worked out pretty well for him.

 

Come on guys

#10 pick in the ML draft and he is going to negotiate for himself? 3% - 5% is what the percentage is for the agent. Do you honestly believe for one minute that its not the ML clubs desire to sign the best kids for the least amount of money? The agents job is to get you the best possible contract and the most money possible. Why? Because the more you make the more he makes. Do you need a lawyer when you get arrested for a crime? No just go represent yourself. Ask the policeman what you should do? Hey think I need a lawyer? What do you think the ml club tells a young kid? You dont need an agent. We would rather just deal with you. Of course they would. Late round draft picks that are not going to get more than a coke and a plane ticket dont need an agent. Guys like Madison would be absolutely insane to not have a true professional to represent them.

 

Of course it is like anything else every player makes his own deal. Here is something from a little article. Little old still good info.
Getting A Piece Of The Action
In 1990, sports-related companies, stadiums and performers produced over $60 billion in revenues, making sports the nation's 22nd largest industry, according to Martin J. Greenberg, coauthor of Sport$biz: An Irreverant Look At Big Business in Pro Sports (Leisure Press, Champagne, 111., $19.95) and director of the National Sports Law Institute at Marquette University Law School in Milwaukee. Approximately $580 million came from professional athletes' endorsement contracts, of which agents typically get 20% to 25%--as much as $145 million annually--in commissions. Throw in the 3% to 5% (potentially $70 million a year) in commissions that represents the agents cut of the $1.4 billion in salaries that team-sport athletes earned in 1991, and it's easy to see why sports agents outnumber athletes virtually two to one. "It can be a lucrative field because you're taking a piece of the player's income, a piece of his action," Greenberg observes. "If you represent a guy who's making $5 million over four years, that's $200,000 in commissions. Fifty thousand dollars a year is a living for a lot of people."

Agree a lawer would be needed to review any contract. Just like anything else.

 

ML organizations have the shrewdest business/attorneys working for them. These guys celebrate when they save pennies, you can imagine their position on multi million dollar contracts.

But there are so many factors involved excluding the money.

I remember having a conversation with Rudy Maybin about Cameron's contract. He insisted that Cameron bank all of his bonus money. If he wanted to live like a millionaire, he better do it with his next contract. (I don't think that will be a problem).

 

Agree, we see so many people of all sports signing contracts for this big money. Then buying the big house, cars, helping family and even stranger things. Then they get hurt, replaced ect... What do they have? Nothing Big house takes money to maintain, cars need gas and helping others is money without a return.