Skip to content

State taxes could play a factor in Cliff Lee choosing between Rangers and Yankees

Nov 4, 2010, 11:19 AM EDT

Cliff Lee Family

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.

Latest Posts
  1. The benches cleared in Friday’s Giants-Rangers game

    Jul 31, 2015, 9:53 PM EDT

    Madison Bumgarner Madison Bumgarner

    Madison Bumgarner was upset Delino DeShields was upset.

  2. Giants place Tim Hudson on the disabled list with a shoulder strain

    Jul 31, 2015, 9:35 PM EDT

    Tim Hudson Getty Images

    The Giants placed Tim Hudson on the disabled list, which created room on the roster for incoming pitcher Mike Leake.

  3. Pirates place A.J. Burnett on the disabled list with elbow inflammation

    Jul 31, 2015, 8:55 PM EDT

    A.J. Burnett A.J. Burnett

    A.J. Burnett hits the DL with an elbow issue. Recently-acquired pitcher J.A. Happ will take his spot in the rotation.

  4. Report: Padres asked Diamondbacks for Paul Goldschmidt in a Craig Kimbrel trade

    Jul 31, 2015, 8:28 PM EDT

    Paul Goldschmidt Paul Goldschmidt

    Diamondbacks GM Dave Stewart laughed when he recalled the Padres asking for Paul Goldschmidt in return in a potential trade involving Craig Kimbrel.

  5. Video: Kendrys Morales avoids tag at the plate with a nifty slide

    Jul 31, 2015, 7:49 PM EDT

    Kendrys Morales Kendrys Morales

    Kendrys Morales is more nimble than we give him credit for being.

  6. Yankees prospect Luis Severino’s next start will be his major league debut

    Jul 31, 2015, 7:20 PM EDT

    Luis Severino Getty Images

    Yankees pitching prospect Luis Severino will make his major league debut within the next week.

  7. Clayton Kershaw scratched from Friday’s start against the Angels

    Jul 31, 2015, 6:14 PM EDT

    Clayton Kershaw Clayton Kershaw

    Clayton Kershaw has been scratched from a start yet again due to a hip problem.

  8. The Winners and Losers at the Trade Deadline

    Jul 31, 2015, 5:37 PM EDT

    Cole Hamels Getty Images

    Yes, I realize it’s silly to do this an hour after the trade deadline, as time is required to see how this stuff truly shakes out. But what is the Internet for if not kneejerk reactions?

  9. Pirates acquire left-hander J.A. Happ from Mariners

    Jul 31, 2015, 4:33 PM EDT

    J.A. Happ AP

    J.A. Happ and Joe Blanton, reunited.

  10. Pirates pick up Michael Morse from the Dodgers for Jose Tabata

    Jul 31, 2015, 4:30 PM EDT

    Michael Morse Marlins Getty Images

    He was DFA’d by the Dodgers as soon as they got him but he may platoon at 1B for Pittsburgh.

  11. So, the Padres sure did a whole lot of nothin’, eh?

    Jul 31, 2015, 4:20 PM EDT

    San Diego Padres Logo

    People thought they’d make four or five trades. They ended up doing nothing.

  12. 2015 MLB Trade Deadline Tracker

    Jul 31, 2015, 4:15 PM EDT

    Detroit Tigers v Seattle Mariners Detroit Tigers v Seattle Mariners

    We’re recapping all of the deals as they come down.

  13. Report: Yoenis Cespedes heading to the New York Mets

    Jul 31, 2015, 3:59 PM EDT

    cespedes getty Getty Images

    The Mets add a big bat to their anemic offense. And they don’t have to part with Zack Wheeler to do it.

  14. Garrett Jones designated for assignment by the Yankees

    Jul 31, 2015, 3:12 PM EDT

    Garrett Jones Yankees Getty Images

    Jones struggled in a part-time role for the Yankees.

  15. The Mets are making a push for Yoenis Cespedes

    Jul 31, 2015, 2:27 PM EDT

    Yoenis Cespedes Getty Images

    This is the third outfielder to whom they’ve been linked in three days. Let’s see if this one takes.

  16. The Blue Jays pick up Ben Revere from the Phillies

    Jul 31, 2015, 2:13 PM EDT

    Ben Revere Ben Revere

    He’s hitting hitting .298/.334/.374 and will likely take over left field duties.

  17. The Cubs, Padres and Red Sox are said to be talking about a three-way deal

    Jul 31, 2015, 2:08 PM EDT

    San Diego Padres Logo

    Jed Hoyer has worked for all three of these teams. He may be in the middle of a big trade involving them all.

  18. Twins trade for Rays reliever Kevin Jepsen

    Jul 31, 2015, 2:05 PM EDT

    Kevin Jepsen Rays Getty Images

    Bullpen help has been an obvious need for Minnesota.

  19. Cubs trade for Dan Haren

    Jul 31, 2015, 1:30 PM EDT

    Dan Haren Dan Haren

    The Cubs get a starter.

Top 10 MLB Player Searches
  1. C. Hamels (6010)
  2. C. Gomez (5025)
  3. T. Tulowitzki (4476)
  4. M. Trout (4045)
  5. J. Cueto (4016)
  1. C. Gonzalez (3756)
  2. A. Rodriguez (3717)
  3. D. Price (3670)
  4. J. Bruce (3382)
  5. T. Clippard (3249)