About potential contract terms for players re-signed or added via free agency

Originally posted by AB81Rules:
If the Mods feel this belongs elsewhere then please move it there, and let me know.

ok, so a lot of people are up in the air about contract and terms, let me make an example, Carlos Hyde, some are up in the air about whether to bring him back or not, but here's one key thing that will make a huge difference come free agency, CA state tax is 13.3% I believe(might be wrong on exact number), and I've said for a long time Hyde is a guy who could command a deal that Lamar Miller got from Houston(Texas where there is zero tax), so say we gave Hyde the same deal Miller got, 4yr $26M, now he got a $4M signing bonus, he saw all of that, aside from agents fee, because no tax, in CA, it's 13.3% of $4M, plus 5% for agents fee, so it comes to around $732K lost to taxes, and fees, plus the fact that half his deal(base and per game roster bonuses) are taxed at 13.3%, unlike Miller who doesn't get taxed for games played in TX, plus FL.

Basically, don't be surprised by the amount of money players want and get from us, due to that 13.3% tax they have to pay.

I think it has an impact but these states also supplement that income tax with property tax among other things. There are also other benefits like advertising in a larger market and opportunities for investment the reason that is explained why KD picked the warriors over most teams.

Originally posted by jcs:

Originally posted by AB81Rules:

If the Mods feel this belongs elsewhere then please move it there, and let me know.

ok, so a lot of people are up in the air about contract and terms, let me make an example, Carlos Hyde, some are up in the air about whether to bring him back or not, but here's one key thing that will make a huge difference come free agency, CA state tax is 13.3% I believe(might be wrong on exact number), and I've said for a long time Hyde is a guy who could command a deal that Lamar Miller got from Houston(Texas where there is zero tax), so say we gave Hyde the same deal Miller got, 4yr $26M, now he got a $4M signing bonus, he saw all of that, aside from agents fee, because no tax, in CA, it's 13.3% of $4M, plus 5% for agents fee, so it comes to around $732K lost to taxes, and fees, plus the fact that half his deal(base and per game roster bonuses) are taxed at 13.3%, unlike Miller who doesn't get taxed for games played in TX, plus FL.

Basically, don't be surprised by the amount of money players want and get from us, due to that 13.3% tax they have to pay.

I think it has an impact but these states also supplement that income tax with property tax among other things. There are also other benefits like advertising in a larger market and opportunities for investment the reason that is explained why KD picked the warriors over most teams.

I don't mind compensation for extra taxes but lets keep it real,Cali is ALL AROUND where its at. No dis' to other states.

Originally posted by SmokeCrabtrees:
I don't mind compensation for extra taxes but lets keep it real,Cali is ALL AROUND where its at. No dis' to other states.

meh

Just for sh*ts and giggles, if Hyde signs a 4yr $26M deal with us, and you take 13.3% of that away, that's $3.458M, while Miller wouldn't have to worry about it because of no state tax.

I think people get caught up in what's reported, it happens every year, people complain, oh we spent too much, when in reality they're losing a good chunk of money due to playing in CA. Don't be surprised in the future you see crazy contracts given out.

Originally posted by AB81Rules:

Just for sh*ts and giggles, if Hyde signs a 4yr $26M deal with us, and you take 13.3% of that away, that's $3.458M, while Miller wouldn't have to worry about it because of no state tax.

I think people get caught up in what's reported, it happens every year, people complain, oh we spent too much, when in reality they're losing a good chunk of money due to playing in CA. Don't be surprised in the future you see crazy contracts given out.

Thats when you gotta kick your endorsement game up along with sponsors/side gigs like commercials

I have no evidence for this, but every time the issue of in-state tax rate comes up I think it's overrated.

I have no doubt that teams in states that rely on property taxes rather than income taxes try to bring it up as a sweetener with agents, but I just really doubt that it's frequently the deciding factor in where players go.

Where players go just isn't nearly that economically rational. I mean heck, we're talking about a system in which 50% of the announced deal is entirely imaginary money, and people do it because they want the recognition of getting an imaginary deal of that size. Then you also factor in all other decision factors that are money related (i.e. size of market, endorsements) and all the non-financial factors (success of the team, familiarity with the scheme or coaches, competition on the roster, locale, weather, etc., etc.) and it just doesn't really matter.

I mean heck, Navarro Bowman this year nixed a trade to New Orleans so that he could sign with Oakland because he didn't want to look for a new house. He's paying DOUBLE the income tax rate in CA than he would in Louisiana because he likes his mansion.

When can the niners resign their free agents? I assume they can do that at any time, is that true, or do they have to wait for free agency to start?

Originally posted by PopeyeJonesing:
I have no evidence for this, but every time the issue of in-state tax rate comes up I think it's overrated.

I have no doubt that teams in states that rely on property taxes rather than income taxes try to bring it up as a sweetener with agents, but I just really doubt that it's frequently the deciding factor in where players go.

Where players go just isn't nearly that economically rational. I mean heck, we're talking about a system in which 50% of the announced deal is entirely imaginary money, and people do it because they want the recognition of getting an imaginary deal of that size. Then you also factor in all other decision factors that are money related (i.e. size of market, endorsements) and all the non-financial factors (success of the team, familiarity with the scheme or coaches, competition on the roster, locale, weather, etc., etc.) and it just doesn't really matter.

I mean heck, Navarro Bowman this year nixed a trade to New Orleans so that he could sign with Oakland because he didn't want to look for a new house. He's paying DOUBLE the income tax rate in CA than he would in Louisiana because he likes his mansion.

Bow's got kids...probably likes them.

If Bow comes back to Oakland, he'll be playing for Gruden. His decision looks bad now, but maybe not so much next year.

It's a player by player thing. Some won't even pay attention or simply don't care thinking they'll still make millions so why care. Others will care greatly. It's the same for regular people. Some people calculate every last cent, others do what they want and deal with repercussions later.

Originally posted by AB81Rules:
If the Mods feel this belongs elsewhere then please move it there, and let me know.

ok, so a lot of people are up in the air about contract and terms, let me make an example, Carlos Hyde, some are up in the air about whether to bring him back or not, but here's one key thing that will make a huge difference come free agency, CA state tax is 13.3% I believe(might be wrong on exact number), and I've said for a long time Hyde is a guy who could command a deal that Lamar Miller got from Houston(Texas where there is zero tax), so say we gave Hyde the same deal Miller got, 4yr $26M, now he got a $4M signing bonus, he saw all of that, aside from agents fee, because no tax, in CA, it's 13.3% of $4M, plus 5% for agents fee, so it comes to around $732K lost to taxes, and fees, plus the fact that half his deal(base and per game roster bonuses) are taxed at 13.3%, unlike Miller who doesn't get taxed for games played in TX, plus FL.

Basically, don't be surprised by the amount of money players want and get from us, due to that 13.3% tax they have to pay.

Yeah, but it is the bay area as opposed to anywhere in Texas

Originally posted by Ninefan56:

When can the niners resign their free agents? I assume they can do that at any time, is that true, or do they have to wait for free agency to start?

Players can be extended whenever.

Hyde can go kick rocks