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gu03alum
12-12-2011, 08:31 AM
I have often wondered how much state income taxes make a difference in contract negotiations. For example, I think LeBron would have been crazy to sign in New York over Miami since he would have given up a lot more in salary due to the high income taxes in New York and New York City compared to none in Florida. I always thought that should be an advantage to Seattle teams that I rarely heard talked about.

Fangraphs has an article explaining how much tax money it is costing Albert Pujols to play in California over Missouri and it's not as bad as you would think.

Link to Fangraphs article (http://www.fangraphs.com/blogs/index.php/pujolsian-tax-implications/)

asoc
12-12-2011, 10:56 AM
It is definitely interesting.

From my understanding there are places where teams will negotiate contracts with players based on the money they take after taxes.

From my understanding, there are some countries in Europe where you pay less taxes for the first X years you are living in the country. But once you are there for that amount of time you pay full taxes.

All of this is interesting and I am not sure it gets enough attention in salary discussions, at least in the US.

cjm720
12-12-2011, 02:09 PM
Any good agent will use it in negotiations.

I'm sure the article points out, but all players pay state income tax, if applicable, pro-rata for their time there. E.G., if Lebron plays in NY for one game during the season, he'll allocate 1/82 of his income and be responsbile for that portion of income tax.