Athletes being paid in cryptocurrency are rising as bitcoin hit all-time highs, receiving some or all of their salaries and endorsement deals in crypto.
Most of the commitments were made in 2021, when the total cryptocurrency market capitalization briefly touched $3 trillion and was steadily rising in value.
Odell Beckham Jr. said in November that he would take his $750,000 salary in bitcoin, while earlier this month two players onthe NBA’s Golden State Warriors said part of their salary would be paid in bitcoin.
Not only athletes receive part of their salaries in bitcoin. The mayors of Miami and New York, Francis Suarez and Eric Adams, have received part of their salary in cryptocurrency in an attempt to demonstrate the openness of their cities to the fast-growing industry.
But while bitcoin’s rise in 2021 highlighted the potential benefits of cashing out in cryptocurrency, bitcoin’s recent price drop of around 50% is highlighting the drawbacks.
Bitcoin has fallen from its mid-November high of around $69,000 to a low of around $35,000 this week, meaning some athletes have seen their pay cut 50% for the same amount of work, assuming they didn’t immediately sell their bitcoin for traditional US dollars upon receipt.
What further complicates salaries in bitcoin are the tax implications, since you are taxed on the value of the bitcoin at the time you receive it, and not on what its value fluctuates during tax season. This means that if bitcoin falls low enough and stays that way, some athletes’ tax bill may be greater than the residual value of their cryptocurrency.
However, the possibility remains that bitcoin will recoup its losses and continue its long-term uptrend, which would make the athletes’ decision to cash out in bitcoin seem much wiser than it might be today.
These are seven professional athletes who have taken a risk with cryptocurrency and have some or all of their salary or endorsement deals paid for in cryptocurrency.
Top 7: Athletes who receive payment in cryptocurrencies
1. Klay Thompson
Team: Golden State Warriors
Agreement date: January 10, 2022
Coin yield since deal: -13.7%.
2. Andre Iguodala
Team: Golden State Warriors
Agreement date: January 10, 2022
Coin yield since deal: -13.7%.
3.- Odell Beckham Jr.
Team: Los Angeles Rams
Agreement date: November 22, 2021
Coin yield since deal: -36.0%.
4. Shohei Ohtani
Team: Los Angeles Angels
Agreement date: November 16, 2021
Bitcoin Yield Since Settlement: -39.7%.
5.- Aaron Rodgers
Team: Green Bay Packers
Agreement date: November 1, 2021
Yield on the coin since the deal: -40.5%.
6. Cade Cunningham
Team: Detroit Pistons
Deal Date: August 19, 2021
Bitcoin Yield Since Settlement: -22.9%.
7. Trevor Lawrence
Team: Jacksonville Jaguars
Agreement date: April 26, 2021
Bitcoin Yield Since Settlement: -32.7%.
