When you see mega-deals signed in California, it’s always fun to consider how the real value to the player would differ if they had signed in other states.
He’ll pay ~$3,282,500 annually in California state taxes. Nearly $40 million over the course of the contract.
He would have paid $1,354,100 annually, and $16,250,000 over the course of the contract, if he signed the same contract with the Red Sox.
In other words, adjusting for location (and disregarding federal income taxes), his contract is worth $285,000,000 in California and it would have been worth $308,750,000 in Massachusetts.
Even if the Red Sox max offer was $300,000,000, after adjusting for state taxes (and once again disregarding federal as that’s the same no matter where you live) his “net” would have equaled that of signing for a team in California ($285,000,000).
If the Sox matched that $325m, he left $23,750,000 on the table to live in Ohtani’s shadow.
He’ll pay ~$3,282,500 annually in California state taxes. Nearly $40 million over the course of the contract.
He would have paid $1,354,100 annually, and $16,250,000 over the course of the contract, if he signed the same contract with the Red Sox.
In other words, adjusting for location (and disregarding federal income taxes), his contract is worth $285,000,000 in California and it would have been worth $308,750,000 in Massachusetts.
Even if the Red Sox max offer was $300,000,000, after adjusting for state taxes (and once again disregarding federal as that’s the same no matter where you live) his “net” would have equaled that of signing for a team in California ($285,000,000).
If the Sox matched that $325m, he left $23,750,000 on the table to live in Ohtani’s shadow.