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” […]
The end of 2017 has seen a flurry of activity as both the House of Representatives and the United States Senate passed tax reform Bills. Both Bills have been promoted as providing tax relief and simplification to individuals, small business and corporations. The House of Representative’s Bill entitled The Tax Cuts and Jobs Act was […]
Last Thursday, the Houston Astros clinched their first ever World Series and they were aided by a deadline deal in which they acquired Justin Verlander from the Detroit Tigers. Both the Astros and Verlander were rewarded with a World Series championship, however Verlander also received a potentially unforeseen monetary reward for his efforts. By finishing the season […]
David Price’s $217 Million contract with the Red Sox surpasses other starting pitcher’s recently signed contracts however, where does the contract’s net present value place it in comparison? INTRODUCTION This week David Price signed a seven year $217 million contract with the Boston Red Sox, while Zack Greinke, who optioned out of his contract with […]
Max Scherzer’s new seven year $210 million contract is a good example of how proper tax planning in a negotiation can increase its’ overall net (after tax) value. Much has been made of the resident and non-resident tax liability that professional athletes face in the multiple states and cities in which they preform services. Often […]
Athletes consider alternatives as California’s latest tax increase is implemented In January, California increased its income tax rate by 2%—to 12.3%—for resident and non-resident individuals earning over $500,000. With California’s Mental Health Service Act imposing an additional 1% on individuals earning over $1,000,000, the state’s 13.3% income tax rate represents the highest of any state […]
Authors Alan Pogroszewski and Kari Smoker examined this very question in their recent law review article and conclude that it is. Marquette Sports Law Review May 31, 2013 In July of 2009 the state of Tennessee imposed a Professional Privilege tax on athletes performing services in the NBA and NHL. Those athletes are assessed a […]
The Oakland A’s have another disadvantage when pursuing free agents on the open market The plight of Billy Bean and the small market Oakland Athletics was highlighted in Michael Lewis’ 2004 book Money Ball. The stakes are different today and Bean’s biggest challenge comes from the state of CA rather than the large market teams […]
Earlier this year, Federal Reserve Chairman Ben Bernanke stated, “Under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases.” The tax increases include cancelling the Bush era tax cuts of 2001 and 2003 which would increase the individual tax rate for those in […]
Alex Rodriguez made headlines this past post season because of his ill-timed slump. However, the irony is: this slump may actually improve his financial situation by more than three million dollars. Over the last three post seasons, Rodriguez hit only 10 singles and two doubles in his 75 official at bats for a .160 batting […]
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