Skip to comments.For stars such as Dwight Howard, less is more in free agency
Posted on 07/08/2013 8:21:29 PM PDT by nickcarraway
Dwight Howard, LeBron James, Andre Iguodala and Tim Duncan all share in a trend that is thriving, even as it shrinks the players' bank accounts. All four are among the growing list of stars who could have cashed in for larger salaries as free agents -- but settled for less money on the open market.
This is not about creating sympathy for stars who are still making eight-figure salaries annually. They may give up a few million here and there, but they're still making out very well in the end.
The point is that a dream is coming true for the NBA and its owners, who two years ago locked out the players in hopes of creating equitability and competitiveness throughout the league. One surprising outcome of Howard's long-suffering pursuit of free agency is that it ended with the richest of all teams, the Lakers, not getting richer. While it's not as if Howard jumped to the Charlotte Bobcats -- he moved to another large market, in Houston -- he did snub the Lakers and their longstanding reputation as the ultimate destination for NBA stars. More shocking was that he lost $30 million up front by accepting the Rockets' lesser four-year, $88 million offer instead of the Lakers' five-year max deal.
(Excerpt) Read more at sportsillustrated.cnn.com ...
Do the tax math - he ends up with more in pocket per year.
The tax saving of playing for a Texas team or Florida team are significant, but in the end the state tax collector will get their money.
For example, if you play for the Texas Rangers, and play a road game at Yankee Stadium, you will write a check to the state and city tax man before you leave town.
Yup. But you play half your games at home...
Well yes, it helps to play half your games in Texas, but the point was that it is hard to avoid the tax man altogether when he has his hand out after 75% of your road games.
No argument there.
Actually he’ll play more than half in TX. His team plays some games against Dallas & San Antonio. Also Memphis Grizzlies in TN and Miami & Orlando in FL, so he may only be out 1/3 of the time.
I’ll believe there is a financial crisis when Professional athletes start earning less money.
Earning less money? Or start being paid less money? Two different things.