Caleb Williams made some unprecedented asks in his rookie contract.
Caleb Williams has finally signed his rookie contract with the Chicago Bears. What caused the delay? Reports suggest Williams’ representatives were making some unique requests before he agreed to the terms.
Though Williams participated in rookie and team activities, he only signed his four-year, $39 million deal with the Bears earlier this week. According to Pro Football Talk, the holdup was due to unusual contract language requests.
Mike Florio reported that Williams requested his contract be paid through an LLC or as a forgivable loan. These methods aimed to help him avoid paying state income taxes in Illinois. LLCs in Illinois have no income tax filing requirements, and a forgivable loan would defer his tax obligations until the loan was forgiven, potentially up to 10 years later.
The Bears consulted the NFL about these requests, as there was no rule explicitly forbidding them. However, the NFL decided that Williams’ earnings couldn’t be directed to a business entity other than himself. The league also rejected the idea of a forgivable loan without providing a specific reason.
Despite the rejection, Williams’ attempt was innovative. Avoiding taxes legally is appealing, and his camp’s strategy could inspire other players to explore similar options in the future.
Imagining a Sunday Night Football introduction with “Caleb Williams, LLC” would certainly be amusing.
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