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Cryptocurrency Signing Bonuses and Salary Cap Ramifications


MKnight82

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If you aren't aware, Russell Okung asked for half of his 2020 salary to be paid in Bitcoin instead of US currency.  The result was the bitcoin jumping in value so large over the season he was one of the highest compensated players in all of football. 

https://news.bitcoin.com/paid-in-bitcoin-nfl-offensive-tackle-russell-okung-considered-the-highest-paid-in-the-league/

This has led to Trevor Lawrence signing an endorsement deal with the cryptocurrency company Blockfolio.  He has asked for a significant portion of his signing bonus to be paid in cryptocurrency as well: 

https://www.forbes.com/sites/chriscason/2021/04/26/trevor-lawrence-makes-first-investment-move-with-first-of-its-kind-partnership-with-blockfolio/?sh=5a2bf6d747ef 

What are your thoughts on this new development?  Do you think this is a fair playing field?  Obviously these players are taking on the risk of these currencies going down in value, but it also could be argued this is circumventing the salary cap as the cap is calculated in US dollars.  

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For instance, when BTC hit $44k, the half of his contract that is paid in BTC climbed to $10.59 million, at $56k+ his half turned into more than his entire quoted salary.”

It sounds like they buy-in at whatever the market is at the time. Didn’t see many details so I’m not 100% sure how it’s structured, but I don’t see how there’d be cap ramifications if this is the case. 

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If this plays out in typical NFL fashion, the League will come out strongly against it until they have time to get out in front of it and monetize it for the owners.
Then they'll brand it and take their Lords cut - adding it to the other billions they earn from the game. NFC bitcoins vs AFC bitcoins for the World Championship

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20 minutes ago, Starless said:

Russell Okung is an idiot

Trevor Lawrence is somehow a bigger idiot

okungs pay for 2020 is now worth 1.5x what it would have been in Cash. And could grow to be more (or less).... doesnt seem dumb to me

I am not going to try to get into an argument about cytpo vs fiat, but I fail to see how him getting more money (in terms of today) is dumb. He could sell now and be up if he chose to

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On 4/26/2021 at 12:10 PM, Starless said:

Russell Okung is an idiot

Trevor Lawrence is somehow a bigger idiot

Lol, enjoy your worthless dollar in a few years after it gets eaten alive by inflation because your bank only gives .01% interest.

I only carry enough cash for bills/small emergencies. Everything else is invested in cryptos, ETFs and a little bit of gold. In the process of buying land (the king of all investments) too.

Edited by Nut
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1 minute ago, 49ers Finest said:

okungs pay for 2020 is now worth 1.5x what it would have been in Cash. And could grow to be more (or less).... doesnt seem dumb to me

I am not going to try to get into an argument about cytpo vs fiat, but I fail to see how him getting more money (in terms of today) is dumb. He could sell now and be up if he chose to

BTC has cratered before and it'll crater again. Sure, if they cash out now, they'll get good value but guys like Okung are true believers and tend to not notice when their house is on fire.

Not even going to mention the environmental impact of the whole venture. 

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3 minutes ago, Starless said:

BTC has cratered before and it'll crater again. Sure, if they cash out now, they'll get good value but guys like Okung are true believers and tend to not notice when their house is on fire.

Not even going to mention the environmental impact of the whole venture. 

It will probably crash again, and then will rise and cycle again as well

The environmental argument has some ground, but also lots of false info, numerous places our moving towards green energy as well

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2 minutes ago, 49ers Finest said:

It will probably crash again, and then will rise and cycle again as well

The environmental argument has some ground, but also lots of false info, numerous places our moving towards green energy as well

idk, when your math puzzle rigs that create value out of thin air use more energy than a country of 45 million people, that's not a great sign to me. 🤷‍♂️

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12 minutes ago, Nut said:

Lol, enjoy your worthless dollar in a few years after it gets eaten alive by inflation.

I only carry enough cash for bills/small emergencies. Everything else is invested in cryptos/ETFs. In the process of buying land too.

Youre adorable.

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I don't get the question...

They can collect payment in whatever format the player and team agree upon as far as anyone should care. It skips the step of them paying him in USD and then him going on the market and buying Bitcoin himself. It seems like it's an annoying step he'd force the team to take to set up their accounting to accommodate him. I don't even know why he would that vs. just buying it himself right after he gets it (beyond it being a publicity stunt, I suppose).

There are zero cap ramifications from this, however.

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