the blood clots hurt his market a little bit, but if this doesn't sound the fucking alarm that the state/city income tax stuff matters and should be reflected in team's salary caps..... aargh.... so annoying.
I am very fucking happy right now!!!! Can't believe the Lightning pulled it off.
However, one of the under reported aspects of this whole thing is that Jeff Vinik (the owner of the Lightning) is also in the midst of a $2 BILLION redevelopment of the Downtown Core. (Where Amalie Arena resides). Corporate, residential, entertainment, you name it - it's being built.
The Lightning and the adjacent Channelside Plaza are the lynchpin of that whole redevelopment, so you can't underestimate the need for a face of the project.... Plus tax-free living, baby!
the extra 10% on $8.5 million is $850K per year. He also plays more than half his games in Florida - 47 out of 88 to be exact, and I'm not sure if NY counts his 2 games/year there (2.5% of total games played in a year) at their city rate or not. For example I work in Florida and we have to spend 3 weeks+ in a given year working in NYC to get a pro rata tax at their rate.
There is also cost of living adjustments tri-state area versus living in Florida.
So maybe its not $1.5 million spread... its $1 million spread with a $500K hometown discount applied.
It's a steal that NYC and Canadian teams would never get.
The state income tax thing is a much bigger deal in football
when you are looking at $20+ million signing bonus payments
But when you are talking about a $10 million salary, which is subject to where they games take place (ie half not at home), the income tax thing just isn't that big of a deal.
It just stems from frustration that Tampa (and Dallas in times when they are very good) is signing so many guys to below market deals due to this issue. 5-8% below market deals doesn't matter so much in rising tides... but when the cap hasn't risen in 5 years now... it matters.
Will be a very interesting year ahead for the Bolts
With Stammer back, does that make Drouin more of a tradeable commodity, or does he slide in alongside 91? Not to mention the fact that guys like Hedman, Kucherov, Johnson, etc., will all need new deals. Killorn and Marchessault are guys likely to move (IMO).
RE: The state income tax thing is a much bigger deal in football
when you are looking at $20+ million signing bonus payments
But when you are talking about a $10 million salary, which is subject to where they games take place (ie half not at home), the income tax thing just isn't that big of a deal.
According to this article, he gets more screwed by away game taxes bc he's in a non-tax state.
Quote:
Taxes -- or the lack of them -- may also have had something to do with NBA all-star and 2010 free agent LeBron James' choice to play for the Miami Heat instead of the New York Knicks. Losi points to Florida's lack of a state income tax.
"That may have been one of the factors that led LeBron to choose Florida versus New York," says Losi. "Ten percent of his first contract was going to be the difference. For him, it was an extra 5 (percent to) 9 percent difference in tax. That's real money."
But Raiola says what works for a megastar such as LeBron may not be the best move for journeymen players.
"If you live in Florida, the taxes you pay to those other states is really taking money out of your pocket because you're not going to get a credit for those state taxes," he says. "If you live in a nontax state, you could easily end up paying state tax on 60 (percent) to 65 percent of your earned income from the team, even though you don't have a tax in the state you reside in."
Meaning if his contract was for $9million in New York he would have made more by calling New York home.
But its straight up bullshit they saved $1.5 million off the 10mm other teams were throwing around because of lower cost of living..
However, one of the under reported aspects of this whole thing is that Jeff Vinik (the owner of the Lightning) is also in the midst of a $2 BILLION redevelopment of the Downtown Core. (Where Amalie Arena resides). Corporate, residential, entertainment, you name it - it's being built.
The Lightning and the adjacent Channelside Plaza are the lynchpin of that whole redevelopment, so you can't underestimate the need for a face of the project.... Plus tax-free living, baby!
There is also cost of living adjustments tri-state area versus living in Florida.
So maybe its not $1.5 million spread... its $1 million spread with a $500K hometown discount applied.
It's a steal that NYC and Canadian teams would never get.
But when you are talking about a $10 million salary, which is subject to where they games take place (ie half not at home), the income tax thing just isn't that big of a deal.
It just stems from frustration that Tampa (and Dallas in times when they are very good) is signing so many guys to below market deals due to this issue. 5-8% below market deals doesn't matter so much in rising tides... but when the cap hasn't risen in 5 years now... it matters.
But when you are talking about a $10 million salary, which is subject to where they games take place (ie half not at home), the income tax thing just isn't that big of a deal.
According to this article, he gets more screwed by away game taxes bc he's in a non-tax state.
"That may have been one of the factors that led LeBron to choose Florida versus New York," says Losi. "Ten percent of his first contract was going to be the difference. For him, it was an extra 5 (percent to) 9 percent difference in tax. That's real money."
But Raiola says what works for a megastar such as LeBron may not be the best move for journeymen players.
"If you live in Florida, the taxes you pay to those other states is really taking money out of your pocket because you're not going to get a credit for those state taxes," he says. "If you live in a nontax state, you could easily end up paying state tax on 60 (percent) to 65 percent of your earned income from the team, even though you don't have a tax in the state you reside in."
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