Giancarlo Stanton just took a $32m pay cut to play for the Yankees

by Moshe W.

Giancarlo Stanton was traded from the Florida Marlins to the Yankees. The move will cost him $32m because while Florida has no state income tax, New York city and state both do.

New York state has an 8.82% tax rate and New York City has a 3.88% rate. Stanton is personally owed $265m over the next ten years (after subtracting 10% for his agent). His local tax bill will therefore be $32m. In years past, this would be partially offset by the deductibility of his local taxes against his far larger Federal tax bill. The current tax “reform” bill nearing completion in Congress, however, removes the deductibility of local taxes, so Stanton is going to get hit with the full bill. In effect, Stanton just took a $32m pay cut to play for the Yankees.

Illinois state tax is 3.75%, so Stanton would have only taken a $10m pay cut to play for the Cubs.

This is not technically Cubs news, but it is baseball financial news, and it is funny. Just some fun facts for your holiday get together.

Comments

I thought state taxes were determined by the number of games played in a specific state. So yes Stanton will pay more because the majority of his games will now be in NY, but its not to this degree. https://www.accountingweb.com/tax/individuals...

You are absolutely correct. The numbers should be halved. My bad.

I'm just glad not to be a tax accountant for a MLB player. That seems like a real nightmare, I appreciate your efforts on helping explain these details. I remember hearing once that players are even taxed on tickets received as comps.

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  • crunch 5 hours 54 min ago (view)

    ex-cub and fun baseball dude Jay Johnstone has died.  74 years old (dementia, COVID).

     

  • Dolorous Jon Lester 1 day 9 hours ago (view)

    I understand why it feels unsettling. I remember the series well (though I, unlike Theo, actually was in high school). Anyway, I view it as a chance to right previous wrongs in the same way we stomped StL out of the playoffs in 2015, or the way the Nationals got to burn through two teams last year that had dumped them out of October in previous seasons.

    But if we lose, of course that was 17 years ago so it's two extremely different organizations.

     

  • Arizona Phil 1 day 13 hours ago (view)

    DJL: All players on Optional Assignment to the minors must be recalled on the day after the conclusion of the MLB regular season, even if the player has not spent at least ten days on Optional Assignment. Players cannot be optioned to the minors again until Spring Training. 

     

  • Arizona Phil 1 day 13 hours ago (view)

    CHAMP: No option year is spent just by calling up a player to MLB. An option year is spent only if a player on an MLB 40-man roster is optioned to the minors for at least 20 days in a given season. 

    Also, Brailyn Marquez is (was) eligible for selection in the Rule 5 Draft in December, so the Cubs were going to add him to the 40 on 11/20 anyway. They just did it a couple of months early.  

     

  • bradsbeard 1 day 16 hours ago (view)

    Not sure if serious, but Theo became the Red Sox GM in 2002. It's true though, there probably aren't many people in the organization besides Ricketts and Crane Kenney who have any strong feelings about that series. 

     

  • Craig A. 1 day 17 hours ago (view)

    I wonder if anyone on the Cubs cares or even remembers the odd events when the Marlins played the Cubs in 2003. I think Theo was in high school. To this old fart it will be more than a little unsettling to watch this post-season match-up. At least we can be fairly certain there will no fans grabbing for foul balls. 

     

  • bradsbeard 1 day 21 hours ago (view)

    Which is kind of annoying. Nobody really picked the Cubs to win this division pre-season. I guess Mattingly gets some credit for guiding the Marlins through their positives but even just letting them play that one game with half the team sick should knock him out of consideration. Meanwhile Ross kept a tight ship and the Cubs has no positives all year. I'd say Ross or Tingler should get it over Mattingly. 

     

  • crunch 1 day 22 hours ago (view)

    cubs finish 34-26 (1st, division)...they play MIA on wednesday.

    good start for d.ross, but the manager of the year is most likely going to d.mattingley (MIA) or j.tingler(SD).

     

  • crunch 1 day 23 hours ago (view)

    ...or he won't make it out of the 8th

    0.2ip 2h 3bb 1k, 5r/er...2 wild pitches

    there's some great stuff in that arm.  mid/high-80s slider, "changeup" around 90mph, fastball 97-99mph...all effortless.  21 years old and never pitched above A-ball.

     

  • crunch 1 day 23 hours ago (view)

    -deleted-

     

  • crunch 1 day 23 hours ago (view)

    rough debut...doubt we're going to see him in the 9th.

     

  • Charlie 1 day 23 hours ago (view)

    Reminds me a little of Jeff Samardzija's debut. Adrenaline throwing straight gas but all over the place. Samardzija threw a fastball all the way to the backstop in his debut (2008).

     

  • crunch 1 day 23 hours ago (view)

    back to back 3-2 count 6-pitch walks.

    he's not in the zone.  he's throwing almost totally fastballs, too.

     

  • crunch 1 day 23 hours ago (view)

    alzolay's gotta be locked in for a start given what he's done lately.

    i wonder what role j.lester will be given.  if he's starting, hopefully he's the 3rd/4th starter, if at all.  someone will probably give him a 2021 contract if he doesn't retire...hope it's not the cubs giving that contract, though.

     

  • crunch 1 day 23 hours ago (view)

    dude's thrown a 97mph and 98mph fastball to start and both looked like he was barely expending effort.

    unfortunately, neither were near the plate.

     

  • Charlie 1 day 23 hours ago (view)

    So, Alzolay gets at least one October start, right? He'd be a weapon out of the pen if the Cubs had more than two believable starters ready.