Inputs
Example Data Table
| Scenario | Base Salary | Signing Bonus | Endorsements | Salary Rate | Endorse Rate |
|---|---|---|---|---|---|
| Rookie contract | $800,000 | $200,000 | $150,000 | 3% | 10% |
| Star renewal | $6,500,000 | $1,000,000 | $2,500,000 | 4% | 12% |
| Mixed income year | $1,800,000 | $300,000 | $600,000 | 3.5% | 10% |
Formula Used
Total Earnings = Base Salary + Signing Bonus + Performance Bonus + Endorsements + Appearance Fees + Other Income.
Gross Commission (Type Method) = (Salary Earnings × Salary Rate) + (Endorsements × Endorse Rate) + (Other Earnings × Other Rate).
Gross Commission (Tiered Method) = Σ(Earnings Band × Tier Rate), using progressive thresholds.
Gross After Rules = apply Minimum and Cap to gross commission.
VAT Added = Gross After Rules × VAT%.
Withholding = Gross After Rules × Withholding%.
Net Payable = Gross After Rules + VAT + Expenses − Withholding − Retainer Paid.
How to Use This Calculator
- Choose your currency symbol and a calculation method.
- Enter earnings components from the contract and side deals.
- Set rates by category, or configure progressive tiers.
- Define commission splits; they must total 100.
- Add taxes, withholding, retainers, expenses, and optional min/cap.
- Press Submit to see results above the form.
- Download CSV for spreadsheets or PDF for sharing.
Insights
Contract mix drives commission volatility
In many sports deals, fixed salary is only one component. Signing bonuses and performance incentives can shift total earnings by 20–60% year to year. Using separate inputs lets you model a “floor” season versus a bonus-heavy season, then compare the resulting commission exposure. A quick sensitivity check helps: on a 2,000,000 package, every 1% change equals 20,000 in commission. For multi-year contracts, repeat the model per season to reflect escalators, roster bonuses, and option years. Include playoff bonuses and award clauses when relevant.
Tiered rates reward larger total packages
Progressive tiers are common when total compensation rises above negotiated thresholds. For example, a 3% rate up to 1,000,000 and 4% up to 5,000,000 increases blended commission as earnings grow. The calculator applies each tier only to the earnings band within that range.
Endorsements often carry higher percentages
Brand and media income is frequently priced above playing income because sourcing and activation require more agent time. A 10–15% endorsement rate can dominate the total commission when sponsorships exceed salary, especially for globally marketed athletes.
Splits clarify internal payout and accountability
Lead agent, sub-agent, and agency splits should total 100%. This breakdown helps reconcile internal invoices, partner agreements, and referral arrangements. It also supports scenario testing when a sub-agent earns a temporary override on a specific contract.
Taxes, withholding, and retainers affect cash timing
Gross commission describes entitlement, but net payable reflects timing realities. VAT or sales tax can be added on top of fees, while withholding reduces immediate cash received. Retainers already paid reduce the remaining balance, and reimbursable expenses can raise the payable amount.
Use charts to spot leverage points quickly
The bar chart highlights where value concentrates: salary earnings, endorsement earnings, other income, and how they translate into commission and net payable. If withholding is large, your negotiation leverage may be improving payment terms rather than changing headline rates.
FAQs
What should I enter as “other income”?
Use any deal-related earnings not covered elsewhere, such as licensing, content revenue shares, or special event payments. Keep it gross, before taxes, so commission calculations remain consistent.
How does the tiered method calculate commission?
It applies each tier rate only to the earnings band within that tier. Amounts above the last threshold use the final tier rate, creating a blended effective percentage across total earnings.
Do taxes increase or reduce what gets paid?
VAT or similar taxes are added on top of commission, increasing the payable invoice. Withholding is deducted by the payer, reducing cash received now, even if the commission entitlement remains unchanged.
Why must splits total 100%?
Splits represent how the gross commission is distributed internally. For accurate reconciliation and payouts, the full commission must be allocated across recipients without gaps or double counting.
When should I use minimum or cap rules?
Use a minimum to protect effort on smaller deals, and a cap to limit fees on very large contracts. Apply them to gross commission before taxes and other adjustments for a clean, auditable rule.
Can I export results for reporting?
Yes. After calculating, download the CSV for spreadsheets or the PDF for sharing with partners. Re-run scenarios with new inputs to keep the exported files aligned with the latest negotiation terms.