Nov 4, 2010, 11:19 AM EDT
While speculation swirls about how much Cliff Lee enjoyed his time in Texas and how much his wife disliked her time in New York, an overlooked factor in his free agent decision-making could be state income taxes.
Darren Rovell of CNBC wrote a very interesting article examining the differences in taxes Lee would pay depending on his new home. Texas does not have a state income tax, but it does have something called a “Jock Tax” that would involve Lee paying approximately $2.25 million if he signed a five-year, $120 million contract with the Rangers.
However, if Lee signed the same five-year, $120 million contract with the Yankees and moved to New York he’d pay between $11 million and $15 million in state income taxes depending on exactly where he lived.
In other words, assuming Lee can get in excess of $100 million from either team any offer the Rangers make will be worth about 10 percent more to him than any offer the Yankees make. Whether or not an “extra” $10 million would be enough to sway Lee one way or another is obviously unclear, but it does suggest that the Yankees will have to clearly top the Rangers’ offer to get him. Of course, we probably knew that already.
- Report: Rangers will pay Josh Hamilton less than $7 million; deal includes opt-out after two years 87
- Suspensions announced for Thursday’s brawl between the White Sox and Royals 75
- Settling the Score: Friday’s results 81
- Report: Angels, Rangers agree on Josh Hamilton trade 69
- Must-Click Link: Alex Rodriguzez: the slugger with a thousand faces 22
- And That Happened: Thursday’s scores and highlights 115
- The Royals and White Sox had a benches-clearing fracas, five players ejected 155
- Bartolo Colon picks off a baserunner. By running him down all by himself. 55
- The early leaders in MLB’s “Franchise Four” thing have been announced (166)
- The Royals and White Sox had a benches-clearing fracas, five players ejected (155)
- Kelvin Herrera gets a five-game suspension; Yordano Ventura fined (133)
- Jose Bautista and the Orioles exchanged some words last night (117)
- Joe Buck has a truly awful suggestion about how to improve MLB broadcasts (116)