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Introduction In negotiations, knowledge is power for both the athlete and the organization.  By quantifying the financial and tax implications for multiple offers, an accurate after-tax present value or true value of a contract can be expressed.  A player, and their representative equipped with this information can evaluate each team’s proposal, based on the city […]

What type of advantage does the NHL expansion team in Seattle have in signing free agents in the open market?   Introduction The Seattle Kraken officially became the National Hockey League’s (NHL) 32nd franchise on April 30th, 2021. The franchise’s expansion draft is scheduled for July 21, 2021. At that time, 30 players will be selected […]

The term ‘tax free income’ is commonly used in discussions around playing in Europe or Asia, but what does that really mean and what are the tax implications? First of all: There’s no such thing as ‘tax free.’ However, the way your income is reported and distributed may make it appear to be without tax. […]

Whether the Chiefs win or Lose the State of Missouri is the big winner on Sunday. Introduction Win or lose the State of Missouri will cash in this weekend with the Kansas City Chiefs appearance in this year’s Super Bowl.  With the game being played at Raymond James Stadium in Tampa Bay and in a state […]

Although all income is subject to federal tax, where the bonuses from this year’s NFL playoffs and Super Bowl becomes interesting is at the state level. With this year’s Super Bowl in Tampa, Florida, a state that does not levy income tax, this does not mean that Patrick Mahomes and his teammates will not face state tax issues regarding this year’s bonus.

Introduction Under the United States Constitution each state has the freedom to invoke their own tax policy separate from the federal government. With professional athletes playing in multiple states, the definition of state residency may potentially cause them to face resident tax issues in multiple states. State or city residents are required to pay tax […]

Potential tax reform takes a substantial bite out of not only Lebron James contract extension but all professional athlete’s contracts. Introduction December 2nd, 2020 – The Los Angeles Lakers agreed to a two-year contract extension with LeBron James, reported to be worth $85,655,532. The extension pushes James’ original four-year contract into a fifth year, in […]

Introduction For US resident hockey players, playing outside the United States borders in two Canadian hub cities in this year’s Stanley Cup playoffs could mean substantial tax savings on their US state tax returns and the longer they stay within the bubble the larger those tax savings could be! Background In March when the COVID-19 […]

Professional sports teams in high-tax states need to adjust to a new economic reality under the Tax Cut and Jobs Act of 2017. This past fall, an article by Alan Pogroszewski, Kari Smoker and Keith Donnelly, published in the NYS Society of CPAs online publication, The Tax Stringer, addressed the impact the Tax Cut and […]

Non-resident NHL players face five times the jock tax in Pittsburgh as compared to their resident counterparts This past November, the Players’ Associations from the NFL, NBA and NHL filed a lawsuit against the City of Pittsburgh claiming that the City’s Non-Resident Sports Facility Usage Fee is actually a tax. The lawsuit argues the “tax” […]