Salary in Bitcoin

Star of the American National Football League Odell Beckham lost 61% of his income to exchange-rate differences and taxes on a salary paid in BTC. 

The football club Los Angeles Rams and Odell Beckham (known in the sports world as OBJ) signed a contract in November 2021 for $750,000. At the same time OBJ announced that he would receive 100% of his annual salary in cryptocurrency – about 11 BTC per year. 

Sports business analyst and senior executive producer at The Action Network Darren Rovell wrote on Twitter recently that OBJ’s decision to convert his entire salary to BTC was “not the brightest idea.” 

Rovell explained that as a result of the crypto market decline (-46%), when converted from BTC to fiat, OBJ’s current salary is only $413,000 compared to the original $750,000. Moreover, after paying federal and state taxes at a combined rate of 50.3%, over the past two months Beckham will earn only $35,000 instead of $90,000, which is less than the price of 1 BTC. 

Current US tax law provides that tax on income from crypto investments is calculated based on the value of the crypto assets on the date they were acquired, not their actual value on the date the tax return is filed.

Well, there’s nothing to worry about, by the end of the year his salary will be not 750K, but 1.1KK. Right now it’s a drawdown and I think he isn’t worried about it at all, since he understood in advance what risk he was taking.

Well, he understood the risks that would be ahead of him, so let him do the math now. If things get critical, I’m sure he’ll reconsider his contract.