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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  • Cubster 1 hour 9 min ago (view)

    and they are including amusement tax, healthcare costs (Doc Adams doesn't come cheap!), social security and political donations to the City and the Governor of Nebraska. 

     

  • bradsbeard 1 hour 34 min ago (view)

    It all depends what you count as "payroll." If you include the $11M in Lester and Descalso's buyouts plus the $3M sent in the Darvish trade you get to somewhere like $145M. If you include the $15M in estimated share of player benefits, you get to $160M. I think that last year, including player benefits, they were slated to be up around $205M for MLB payroll before the pandemic. 

     

  • crunch 11 hours 18 min ago (view)

    not sure, but i think it's around 130-135m right now even with bryant/baez/contreras still on board...including the 3m to set darvish free and other random $$ expenses on the roster.

    tack on another 3-4m for happ when that gets settled....plus other odds/ends that have a chance to make the roster (s.miller, a.morgan, j.holder, etc) and other pre-arbitration guys...

    cubs still need someone to back up contreras (if he sticks around, which i wouldn't be surprised to see him stick around)...not sure if taylor gushue is gonna be that guy and m.amaya is too young.

     

  • George Altman 12 hours 7 min ago (view)

    Seriously, what's the 2021 payroll number? Currently at approximately $165M and after they trade Bryant, Baez, & Contreras  - $130M. Is that it, $135-140M.

     

  • crunch 12 hours 11 min ago (view)

    Q to the angels...supposedly 1/8m

     

  • crunch 21 hours 7 min ago (view)

    pete ricketts (the governor of Nebraska ricketts) is a key part of an anti-gambling Nebraska group called "Gambling With The Good Life" that actively lobbied their open legislature...including a speech by pete...to keep gambling illegal in Nebraska.

    he last spoke for the group to the state government in-session 3 months ago.

    ...it's also worth mentioning all of this is separate from the Draft Kings/Wrigley Field deal that flew under the radar toward the end of the season that will put a sportsbook directly in wrigley field, itself.

     

  • Charlie 21 hours 42 min ago (view)

    Of all the things, why does this most make me want to punch

     

  • Cubster 1 day 3 hours ago (view)

    I thought the Cubs had lost a rising star in Porter, seems the just got lucky with him leaving the organization. 

     

  • crunch 1 day 10 hours ago (view)

    jared porter...damn dude...mets gm, ex cubs director of scouting...

     

  • crunch 1 day 14 hours ago (view)

    cubs freeing up that chatwood + lester loot sure did help...wait...sigh.

     

  • Cubster 1 day 14 hours ago (view)

    Plus Chatwood signing w Bluejays is done.

     

  • crunch 1 day 16 hours ago (view)

    ...and done.  1 year deal with a mutual option.

     

  • Cubster 1 day 16 hours ago (view)

    Dolorous in discussions with the Washington Schwarbs.

     

  • crunch 1 day 16 hours ago (view)

    that's where i'd put my money.  he gave up an alarming amount of HR last season, giving pause.  still, he's shown he's better than a 5 slot guy...

     

  • Cubster 1 day 17 hours ago (view)

    God knows, the pitching staff needs more Garlick but the offense needs to ward off those strikeout demons.

     

  • Dolorous Jon Lester 1 day 17 hours ago (view)

     Has to be Paddack