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Kobe will only receive $10.6 mill of his $24 mil contract due to taxes

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by shaggylambda, Dec 16, 2013.

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shaggylambda Member

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http://collapse.com/james-daniels/2013/11/01/id893.htm?utm_source=Outbrain

"This reality may be why fellow NBA star Dwight Howard left Bryant’s Lakers this year. According to Forbes, Howard, who accepted a lower contract value to sign with the Houston Rockets, will actually make more money than he would have by taking the much higher amount offered by L.A. That’s because, while California has the mentioned tax of 13.3 percent, Texas has none.

Some speculate Jeremy Lin did the same, leaving the Knicks for Houston due to New York’s high taxes."

Rockets fans in particular, and fans of Texas teams in general have been saying this for years. Many argue that it is a huge benefit to play/live in Texas. Some argue that it doesn't really matter because they will make all that back in endorsements and other business opportunities if they live in more glamorous cities. Economically sound players would definitely be able to take advantage of their environment. When I read the break down of Kobe's situation it made me go

I didn't see this posted anywhere. Started a new thread here because it briefly mentioned D12 and J. Lin. Please lock if posted already.

#1 shaggylambda, Dec 16, 2013

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Still counts against their cap.

#2 jacoby, Dec 16, 2013
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jacoby said: ↑

Still counts against their cap.
Click to expand...

who said it doesnt

#3 vlaurelio, Dec 16, 2013
shaggylambda Member

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jacoby said: ↑

Still counts against their cap.
Click to expand...

He'll yeah it does! And it brings me great satisfaction knowing that everything Lakers gets screwed!

#4 shaggylambda, Dec 16, 2013
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I'm not feeling sorry for a guy hauling in 10.6 million, especially if he gets to live in LA. Honestly, if I were a rich athlete, I'd happily pay higher taxes to live in CA.

#5 Raven, Dec 16, 2013
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There's a reason why Texas has to have low taxes to get people to live here.

#6 Whoopy, Dec 16, 2013
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Lin left the Knicks? That's news to me...

#7 RV6, Dec 16, 2013

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shaggylambda said: ↑

http://collapse.com/james-daniels/2013/11/01/id893.htm?utm_source=Outbrain

"This reality may be why fellow NBA star Dwight Howard left Bryant’s Lakers this year. According to Forbes, Howard, who accepted a lower contract value to sign with the Houston Rockets, will actually make more money than he would have by taking the much higher amount offered by L.A. That’s because, while California has the mentioned tax of 13.3 percent, Texas has none.

Some speculate Jeremy Lin did the same, leaving the Knicks for Houston due to New York’s high taxes."

Rockets fans in particular, and fans of Texas teams in general have been saying this for years. Many argue that it is a huge benefit to play/live in Texas. Some argue that it doesn't really matter because they will make all that back in endorsements and other business opportunities if they live in more glamorous cities. Economically sound players would definitely be able to take advantage of their environment. When I read the break down of Kobe's situation it made me go

I didn't see this posted anywhere. Started a new thread here because it briefly mentioned D12 and J. Lin. Please lock if posted already.
Click to expand...

For about the 500th time - NBA players don't get paid the way this idiot thinks - they get game checks which are taxed depending on where the game is played. I don't know if Kobe's lump sum is affected by this but it could probably be structured to minimize this. There's also the small matter of deductibility of state taxes, AMT - it's all a ****load more complicated than just multiplying Kobe's income by 39 and 13 and deducting it from his headline earnings - and he pays people to figure this out for him.

I should have known this was garbage when I saw the other topics this genius writes about - like the "dollar collapse"

#8 SamFisher, Dec 16, 2013
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SamFisher said: ↑

For about the 500th time - NBA players don't get paid the way this idiot thinks - they get game checks which are taxed depending on where the game is played. I don't know if Kobe's lump sum is affected by this but it could probably be structured to minimize this. There's also the small matter of deductibility of state taxes, AMT - it's all a ****load more complicated than just multiplying Kobe's income by 39 and 13 and deducting it from his headline earnings - and he pays people to figure this out for him.

I should have known this was garbage when I saw the other topics this genius writes about - like the "dollar collapse"
Click to expand...

This. And also Jeremy Lin had no "NY vs. Houston" choice. He had to go out there and get a contract from a team and NY had to choose whether to match.

#9 Carl Herrera, Dec 16, 2013
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This. And also Jeremy Lin had no "NY vs. Houston" choice. He had to go out there and get a contract from a team and NY had to choose whether to match.
Click to expand...

I bet Dolan couldn't match due to crushing NY state taxes.

#10 SamFisher, Dec 16, 2013
Pizza_Da_Hut I put on pants for this?

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SamFisher said: ↑

For about the 500th time - NBA players don't get paid the way this idiot thinks - they get game checks which are taxed depending on where the game is played. I don't know if Kobe's lump sum is affected by this but it could probably be structured to minimize this. There's also the small matter of deductibility of state taxes, AMT - it's all a ****load more complicated than just multiplying Kobe's income by 39 and 13 and deducting it from his headline earnings - and he pays people to figure this out for him.

I should have known this was garbage when I saw the other topics this genius writes about - like the "dollar collapse"
Click to expand...

Kobe actually is one of the few players to receive lump sums...

#11 Pizza_Da_Hut, Dec 16, 2013
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SamFisher said: ↑

I bet Dolan couldn't match due to crushing NY state taxes.
Click to expand...

Taxes has nothing to do with the team tho.

#12 HTown_TMac, Dec 16, 2013
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While Texas and Florida teams do share a nice advantage when it comes to taxes, this article over-simplifies things. You need to take the "Jock Tax" into account here.

#13 Wooderson, Dec 16, 2013

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this is why i'm glad i don't make 24 million a year.

#14 francis 4 prez, Dec 16, 2013
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Not sure why NBA players care so much about money to be honest...it's not like they're ever around to enjoy it. I guess after 40 they get to put more than 10 miles on their beloved set of wheels

#15 makio9, Dec 16, 2013
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lol breitbrat being the source... apparently they don't know what a marginal tax rate is

#16 TheRealAllpro, Dec 16, 2013
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In the meantime, their wives get to bang in mansions behind their backs.

Is that not appropriate for here. Sorry. Please don't ban.

P.S is there really a thing called "Jock Tax"? Just how much is a set of underwear in the States.

#17 makio9, Dec 16, 2013
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Wait so rockets traded for Kobe....why?

Oh wait they didn't? Damn I ended up in nba dish. Something's wrong with the site someone notify a mod, admin or Morley ? Murray ? I'm lost just help someone. Thanks.

#18 5KR4TCH, Dec 16, 2013

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Kobe is a consummate professional, I hope he retires a Rocket.

#19 Patience, Dec 16, 2013

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Most people making decent money like 200,000ish in a big city with a state sales tax will pay 50% or a little more for taxes. If he wanted to pay less taxes he should have come to a state like Texas.

#20 SugarLandDream8, Dec 16, 2013

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