The top overall pick in the 2024 NFL Draft, Caleb Williams, has finally signed his rookie contract with the Chicago Bears. Although he wasn’t the last first-round pick to sign, Williams’ deal did take a while to get done for an interesting reason.
Williams’ contract took longer than most to hammer out because the QB and his “team” were using their “creativity” to try and skirt as many taxes as possible, according to Pro Football Talk.
“For example, multiple sources tell PFT that there was an attempt to get Williams paid as an LLC,” Mike Florio wrote on his site. “The Collective Bargaining Agreement doesn’t seem on the surface to foreclose that approach. However, the league decided that it does. The Bears were told by the NFL that the player’s money can’t go to a business entity other than the player.”
“Another approach emerged from the concept of a forgivable loan, which would have resulted in Williams getting the money tax free until the loan was forgiven, as many as 10 years into the future. The Bears, through the NFL, also nixed that possibility.”
Florio shares that Williams’ father is a successful commercial real estate professional, so these types of tax schemes have likely worked for him over the years.
This isn’t the first time Caleb Williams has tested the NFL Collective Bargaining Agreement in regards to his contract and lost. Ahead of the 2024 NFL Draft, it was reported that when interviewing agents, Williams’ team asked potential representatives to find a loophole in the league’s rookie salary scale.
No agent could find one, so the Bears QB did not hire a traditional player agent.
Caleb Williams isn’t the last NFL draft pick to sign his contract
Since the NFL rookie wage scale went into effect in 2011, it’s been relatively easy to sign draft picks. There is no negotiation as to how much each pick will make, although there is some wiggle room with things like contact language and bonus payout schedules.
Still, as of July 18, there are still several unsigned 2024 first-round draft picks.
The Caleb Williams contract with the Bears means there are three rookies currently unsigned, but only two teams with unsigned picks. That’s because the Minnesota Vikings have yet to ink the No. 10 pick, former Michigan quarterback J.J. McCarthy, or the No. 17 selection, former Alabama pass rusher Dallas Turner.
Outside of that, pick No. 18, former Oklahoma offensive tackle Amarius Mims is still awaiting a final deal from the Cincinnati Bengals.
These deals are now coming down to the wire, as rookies report to Vikings training camp on July 21, while July 20 is the rookie reporting date for the Bengals. The good news is that these are two of the later rookie camp dates in the league. Rookies have already reported for fifteen teams as of July 18.
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