[Signing] Ducks re-sign Frank Vatrano (3 years, $4.57m AAV, deferred salary)

[kyuss275]

What happens if the ducks go belly up before his deferred money kicks in?

[Strange Brew]

Originally Posted by dino7c

I know its cool to knock Cali these days but they are still a HAVE state and payout more federally than they get back. They have the largest economy of any state and if they were a country they would have the fifth largest economy in the World. Things will be sorted at some point...this is pretty shady he is earning the money while in Cali for more than half his season. Players already play different taxes based on their road games.

Also, reading is hard but nobody is saying they are breaking any rules...just that they will address this in a future CBA.

IMO

Reading is hard? Try reading some of the posts that explain how there is zero cap circumvention, just players wanting to defer earnings for tax purposes.

[Strange Brew]

Originally Posted by kyuss275

What happens if the ducks go belly up before his deferred money kicks in?

This really is a good question.

When corporations have deferred compensation plans in which all employees can participate, the plans are qualified, the assets placed in a trust and protected from creditors.

I don’t imagine these plans are qualified though because they are negotiated individually. The assets can still be placed in a rabbi trust which means the organization can not access them. But they are still subject to creditor claims in a bankruptcy.

It’s an issue with deferred compensation plans for executives. You get potential tax savings but you are taking on some credit risk.

This is in the US. May be different in Canada.

[Locke]

Originally Posted by Strange Brew

This really is a good question.

When corporations have deferred compensation plans in which all employees can participate, the plans are qualified, the assets placed in a trust and protected from creditors.

I don’t imagine these plans are qualified though because they are negotiated individually. The assets can still be placed in a rabbi trust which means the organization can not access them. But they are still subject to creditor claims in a bankruptcy.

It’s an issue with deferred compensation plans for executives. You get potential tax savings but you are taking on some credit risk.

This is in the US. May be different in Canada.

That was my thinking as well.