They pay taxes based on where games are played, so we are looking at around 1.5MM, give or take, in tax differences between MN and TX, for a 30MM contract. That's not money to be ignored, but it's probably not the deciding factor. Given the number of players in MLB and the NBA that sign in NY and CA, I'm guessing taxes are not the main factor.
*those are SUPER ROUGH estimates......but I took the highest MN rate, divided by 2, and multiplied by 30MM.....
This is off topic, but I'll ask because why not....
What if a player goes on the IL? So let's say I'm making $30M per year.
Scenario 1) If I'm healthy all year I pay taxes in all the states my team played games (regardless of if I play, or I'm on the bench).
Scenario 2) I get hurt, but not too bad. I'm on the 10day IL for a stint and I rehab for a week at AAA. For the days I'm on the IL where do I pay taxes? Home? Where my team is playing? How about that stint at AAA? I assume I pay taxes where those games are played.
Scenario 3) I blow out my arm. Out for the season. 60day IL. Now where do I pay taxes? Is it different than the 15 day IL?
Edited by amjgt, 04 November 2019 - 12:08 PM.