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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  • Arizona Phil 1 hour 55 min ago (view)

    And if Bryant does win the Service Time grievance his value in a trade this coming off-season will be diminished, because one year of club control until he becomes a free-agent versus two years of control is a significant difference. 

     

  • Arizona Phil 2 hours 11 min ago (view)

    Q-MAN: It actually wouldn't surprise me if Bryant wins the grievance. 

     

  • Cubster 3 hours 12 min ago (view)

    ...and our Manager can dance!

     

  • QuietMan 4 hours 32 min ago (view)

    Still cant get the images of that SNL skit out of my mind.

     

  • Cubster 6 hours 49 min ago (view)

    This is really sad. A fatal pulmonary embolism is quite rare, older data had about 0.019% incidence (range 0-0.6%, for total knees). DVT without prophylaxis is higher and most people are getting prophylaxis (blood thinners) postop. DVT (leg clots) is a nuisance but not life threatening (unless the clot goes to the lungs). Patients with a history of DVT are at greater risk and there are other risk factors.

     

  • Cubster 7 hours 8 min ago (view)

    Kaplan also tweets Ross is the new manager and they are working on contract. Tweet reported in mlbtr too.

    "Cubs made their decision late yesterday afternoon and the other candidates have been informed they are indeed out. David Ross is the choice."

     

  • QuietMan 7 hours 13 min ago (view)

    The Kris Bryant service time grievance is finally being heard by an arbitrator this week according to Kaplan.

     

  • crunch 1 day 18 hours ago (view)

    j.girardi did a 2nd interview with PHI on Monday and he's supposedly the favorite for the job.

     

  • bradsbeard 1 day 23 hours ago (view)

    The draft over the ASB and the trade deadline pushed back until August 15th or so would make sense. Otherwise, I don't know how scouting departments are going to handle the draft lead up and the trade deadline running almost simultaneously.  

     

  • Arizona Phil 1 day 23 hours ago (view)

    One other thing about MLB player development that is very different from NFL, NBA, and NHL player development is that most MLB clubs have upwards of 300 minor league players under contract (not including players on their MLB 40-man roster, the Cubs presently have 301 minor leaguers under contract on nine minor league affiliates).

     

  • Arizona Phil 1 day 23 hours ago (view)

    JUST SAYIN: MLB is the only one of the four major North American professional sports that holds its draft and signs its draft picks during the season.

     

  • crunch 2 days 8 hours ago (view)

    umpire eric cooper has died...complications from knee surgery (blood clot)...52 years old

     

  • crunch 2 days 19 hours ago (view)

    "MLB Network's Jon Heyman reports former player David Ross and Astros bench coach Joe Espada "appear to be the frontrunners" for the Cubs' managerial opening."

    espada's had 2 interviews.  for a guy who's actively at his "other job," having a 2nd interview seems like both sides want to make this work.  SF and PIT are also supposedly interested in espada.

     

  • JustSayin' 2 days 21 hours ago (view)

     That's a fair description of the benefits of the plan but If I have to choose between "better way" and "owners' greed," I pick the latter.  MLB wants better MiLB facilities, on average, without paying a cent.  They want to deal with the social and legal pressure they are getting for not even paying minor league players minimum wage per real hour worked by having less players.  In addition, the draft is to be moved to late August, so every draftee would lose compensation for the stub year in which they are drafted.  For this reason, I'm not sure your point about col

     

  • Hagsag 2 days 21 hours ago (view)

    Thanks Mr. Phil.

     

  • Arizona Phil 2 days 22 hours ago (view)

    HAGSAG: Besides reducing the costs that are associated with operating a minor league club, reducing the number of minor league affiliates would allow MLB organizations to increase the salaries of their remainng minor league players (who would be the organization's most-legit prospects) without having to increase the organization's aggregate minor league payroll.