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Starting next year, the savings realized by NFL players under the new federal tax law will be offset by the loss of the ability to deduct agent fees. And the NFL Players Association has now made it clear that players won’t be permitted to pre-pay 2018 fees in 2017.

In a memo sent to all contract advisors, the NFLPA notes that “a number of agents” have inquired about a relaxation of rules that prohibit an agent from collecting fees before money has been paid to the players by their clubs.

“In light of these requests, and to properly consider whether or not to relax our Regulations regarding the timing of the payment of agent fees, the NFLPA sought a legal opinion from outside tax counsel about the deductibility of agent fees applicable to current Player Contracts that extend to the 2018 season (which contract covers the 2018 and part of the 2019 calendar years) and seasons beyond,” explains the memo, a copy of which PFT has obtained. “Tax counsel has advised us that under current tax law a deduction may not be permitted for prepayment of fees relating to future years of a multi-year contract.”

As a result, the NFLPA has decided not to change its rules regarding the prepayment of fees.

The memo also notes that players should seek their own tax advice from their individually retained tax advisors. And that’s good advice; at a minimum those tax advisors would advise players to ensure that they pay all fees incurred in 2017 before December 31, in order to avoid losing the ability to deduct these fees from future tax returns.