The deal is finally done, a day after pretty much everyone reported prematurely that Bears quarterback Caleb Williams had signed his four-year rookie contract.
The process, we’re told, included some creativity by Williams’s camp regarding tax issues.
For example, multiple sources tell PFT that there was an attempt to get Williams paid as an LLC. 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.
The outside-the-box ideas aren’t crazy. Caleb’s father has worked for years in commercial real estate. The ideas he brought to the table were potentially revolutionary. Unfortunately, they never got off the ground.
We’re still waiting to get our eyes on the final contract. We’ve reported that he’s expected to get all of his signing bonus soon. Other questions relate to language that will void future guarantees, along with the question of whether the Bears would be entitled to an offset if they cut Williams with guaranteed money remaining and he signs with a new team.