[NU Sports] What's in a million?

[Roy Lamberton]

You'd have to check the financial setup but...

I would guess that most head coaches are organized as Sub S corporations with
their entire salary and perks going into the front end of the corp.

They then take a salary out of the S-corp and pay full employment taxes on just
that salary with the rest of the "income" after expenses going as ordinary
income.

Its amazing what expenses you can write off as a Sub S - including that extra
wide screen TV for watching films, various kinds of personal liability
insurance, your agent's fees, and parties for alums, etc. and its all above the
bottom line.

If that is the case, a coach can live very comfortably on $250,000-300,000 of
that gross with well over half a million sheltered in various other projects.
FWIW - Barry Switzer didn't need to do anything, ever again after he left
Oklahoma, but the call of the NFL and the chance to win a Super Bowl was just
too strong.

rsl



++++++++++++++++++++++++++++++++++++++++++++
Roy S. Lamberton - Senior Associate
Computer Applications & Support Associates
and Publisher of Purple Reign, 
The Scout.com Northwestern University Site
(http://www.purplewildcats.com)
AIM Handle: CoachRoy74
======== Go Cats -  Beat 'em All ===========
"You have a Republic Madam --
     If you can keep it" - Benjamin Franklin
============================================

> -----Original Message-----
> From: nwu-sports-bounces at tssi.com 
> [mailto:nwu-sports-bounces at tssi.com] On Behalf Of Dennis W. Brandt
> Sent: Monday, November 27, 2006 7:18 PM
> To: nwu-sports at romaine.tssi.com
> Subject: [NU Sports] What's in a million?
> 
> 
> <If you're used to making (and possibly spending) $1 million 
> or more a year, with lots of perks, a $3 million buyout 
> really doesn't last all that 
> long.
> 
> Try me.  I'll make it last.  My name isn't Mike Tyson.
> 
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