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Old 09-21-2017, 10:16 PM
 
52,058 posts, read 41,872,746 times
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Quote:
Originally Posted by rigas View Post
exactly. tim duncan, david robinson, james harden, dirk, yao, etc, all guys from small to medium size markets who are not/never were hurting on endorsements.
kawhi is starting to pick them up fairly well lately too.
winning is far far more important to sponsors than location.



oh yes, AI would surely blow through 3-4-5 mil no different than the other 150mil he made on salary.
but the point stands, in hind sight, you know those guys would like to have that extra money/spent money back.
Well, the bottom line is that not all guys blow that money....and none of them that do think they will so yeah, there is a huge tax advantage for some teams.
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Old 09-22-2017, 06:15 AM
 
Location: spring tx
7,912 posts, read 8,207,205 times
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Quote:
Originally Posted by Mathguy View Post
Well, the bottom line is that not all guys blow that money....and none of them that do think they will so yeah, there is a huge tax advantage for some teams.
It's crazy that something like 65% of players file bankruptcy within 5 years after leaving the league.

My point in this (as well the article itself) is how big the gap really is as far as tax deductions based on state.
And taking endorsements into consideration, (the article only figures salary) that tax discrepancy is much larger.
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Old 09-22-2017, 08:04 AM
 
744 posts, read 610,426 times
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Quote:
Originally Posted by CaliDude1 View Post
Yes. People always forget this part when talk of taxes comes up. Plus, players like Curry and Kyle Lowry had the option of leaving high tax areas. Both elected to stay. DeRozen could have left Toronto as well. He stayed. Durant elected to go to a higher tax state. Decisions like this are calculus, not basic arithmetic.

Lower state tax doesn't necessarily mean more overall money for star players.
They have private jets or charters. A 2 - 4 hour flight to the studios to save $6mil/yr doesn't sound bad. There is always the off-season to shoot your commercials in LA or NY. There is on-location filming in Texas and Florida.

The Williams sisters moved to Florida from California for a reason and they still do commercials.

I think you might have to be busier in high-tax states. Curry is doing commercials & Reality TV. I like his TV commercials though. I am sure it works out better for him but not for every star athlete.
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Old 09-22-2017, 12:41 PM
 
Location: Crooklyn, New York
28,272 posts, read 26,286,355 times
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Quote:
Originally Posted by Army_Guy View Post
Pretty sure these guys all have connections with lawyers and accountants who reduce their tax liability.
Yep. I doubt Steph Curry gets a W-2 from "Golden State Warriors Incorporated" and then proceeds to Turbo Tax.

Quote:
The employer pays the PSC directly for the athleteís services and the PSC includes the amounts paid by the third party in its gross income. The athlete includes in his/her income only the wages paid to him/her by the PSC. Therefore, any money going into the PSC is not considered to be the income of the athlete and is taxed at the established corporate rate which is substantially less than the rate for income tax. Athletes gain further benefits with the help of PSCs by filing returns on any qualified pension plans, profit-sharing plans (such as issuance of dividends to shareholders) and medical bills reimbursement plans they may have in place with their PSC. The use of a PSC thus opens up the possibility of substantial tax benefits.
https://lawnk.wordpress.com/2012/11/...incorporation/
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Old 09-22-2017, 03:45 PM
 
3,565 posts, read 1,879,512 times
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Quote:
Originally Posted by rigas View Post
If you think 15% of a persons earnings is "nothing" regardless of their income level, then sir, you're confused.
$3,000,000 a year is "real money" that's $15,000,000 over the course of a 5 year contract.
That's not a soda or candy bar.

Take into consideration that a HUGE percentage of nba players end up broke within 5 years of getting out of the league, that tax money is HUGE.
That $15M is beans compared to the difference being a star on a winner in a large market with major endorsement deals will mean to a player. If Curry was the man on a terrible team in Minnesota, do you think he would be one of Under Armour's largest shareholders? We don't know exactly how big his UA deal is, but it definitely is much larger than $15M over 5 years. It's probably much closer to his full NBA contract over the next 5 years than it is to $15M. He's a winner in a big market, and that matters to his bottom line.
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Old 09-22-2017, 04:49 PM
 
Location: Crooklyn, New York
28,272 posts, read 26,286,355 times
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It is true that the digital age has made it such that players can make fortunes anywhere if they are good enough. This article, however, argues that Lebron could make more if he played in NYC.

Quote:
People in Ohio will try to tell you otherwise. In today’s global media landscape, they will say, a superstar like you can build a following from anywhere. We heard it from David Falk. “Players at that level,” he said, “are going to make money anywhere. We live in a digital age.” It’s a fair point. The NBA’s marketing department will throw its weight behind superstar players wherever they are (this was the essential lesson of the Jordan era). And the people who make decisions about endorsement deals generally follow their lead. You know this as well as anyone, seeing as Nike signed you to a seven-year, $100 million deal before the company knew where you would play. And the Cleveland market hasn’t exactly scared away Coca-Cola, McDonald’s, State Farm, and Upper Deck.

But that’s looking at everything the wrong way. The question is not whether you can get national, even global, exposure playing in Cleveland. The question is whether you can get more in New York. And the answer is a resounding yes, especially if you win. Listen to Vince Gennaro. He did marketing for Pepsi for years and is now a sports-revenue consultant. The prospect of you as “the centerpiece of the resuscitation of one of the marquee franchises in sport” is dizzying, he says. According to him, if you won a title with the Knicks, “the income opportunities would be boundless. It would be staggering.” Nike sales, he says, would “spike enormously.” You’ve done some slick commercials in your day. We especially enjoyed the Nike “Chalk” spot featuring Lil Wayne and some clever variations on your pregame talcum-powder hand-drying ritual. But check out the Nike ad, up above, that digo, a New York creative shop, already made for you. That work for you?
Why LeBron James Should Be a Knick - Because This Is the Place to Make Your First Billion -- New York Magazine

Spike Lee's head would explode. And a Warriors-Knicks final would probably blow every NBA viewing record out of the water.
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Old 09-23-2017, 08:28 PM
 
Location: spring tx
7,912 posts, read 8,207,205 times
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Quote:
Originally Posted by TheCityTheBridge View Post
That $15M is beans compared to the difference being a star on a winner in a large market with major endorsement deals will mean to a player. If Curry was the man on a terrible team in Minnesota, do you think he would be one of Under Armour's largest shareholders? We don't know exactly how big his UA deal is, but it definitely is much larger than $15M over 5 years. It's probably much closer to his full NBA contract over the next 5 years than it is to $15M. He's a winner in a big market, and that matters to his bottom line.
The key isnít the market, the key is winning. KG was making huge endorsements in minny. Duncan, Parker, Robinson all made huge endorsements in a small market.

Winning, PERIOD, brings in the endorsements, not the market.
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Old 09-24-2017, 09:18 AM
 
Location: Island of Misfit Toys
5,066 posts, read 2,189,497 times
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Market will always make the money. In NYC/LA you will make more money, win lose or draw.
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Old 09-24-2017, 08:01 PM
 
Location: spring tx
7,912 posts, read 8,207,205 times
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Quote:
Originally Posted by JonasW View Post
Market will always make the money. In NYC/LA you will make more money, win lose or draw.
Please show your work on that math

The numbers I find would not agree
https://www.google.com/amp/s/www.for...orsements/amp/
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Old 09-24-2017, 08:03 PM
 
Location: spring tx
7,912 posts, read 8,207,205 times
Reputation: 1982
Quote:
Originally Posted by BajanYankee View Post
It is true that the digital age has made it such that players can make fortunes anywhere if they are good enough. This article, however, argues that Lebron could make more if he played in NYC.



Why LeBron James Should Be a Knick - Because This Is the Place to Make Your First Billion -- New York Magazine

Spike Lee's head would explode. And a Warriors-Knicks final would probably blow every NBA viewing record out of the water.
Yes letís take a minute to consider the source. Obviously a New York magazine is going to tell everyone that a guy like Lebron would make leaps and bounds more if he played in their town.
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