Baseball agents such as Scott Boras may be many things; scummy, slimy and dishonest, but one thing they aren't is dumb. Especially when it comes to getting their clients and in turn themselves, paid. With the election of Barack and his promise of higher taxes, some baseball agents already are thinking about trying to beat a possible tax increase for their well-paid clients.
Democratic presidential candidate Barack Obama has proposed increasing the top federal income tax rate from 35 percent to 39.6 percent, where it was under the Clinton administration. If signing bonuses are paid before Jan. 1, they likely would be taxed at the current rate and would not be subject to any tax increase.
Democratic presidential candidate Barack Obama has proposed increasing the top federal income tax rate from 35 percent to 39.6 percent, where it was under the Clinton administration. If signing bonuses are paid before Jan. 1, they likely would be taxed at the current rate and would not be subject to any tax increase.
From the AP: "Next year's major league minimum is $400,000. Agent Scott Boras, negotiating eight- and possibly nine-figure deals for free agents Manny Ramirez and Mark Teixeira, already has thought about the possibility of asking for larger signing bonuses payable this year in some of his contracts.
"There's some consideration to be had with the impact of the election," he said.
"There's some consideration to be had with the impact of the election," he said.
Free agents can't start negotiating money with all teams until Nov. 14. Only a relatively small percentage of contracts are finalized before Jan. 1.
Still, for a big-money free agent earning $10 million in 2009, Obama's plan could increase his federal tax by more than $400,000.
"There's some consideration to be had with the impact of the election," said Paul Kinzer, who represents free-agent closer Francisco Rodriguez."
"There's some consideration to be had with the impact of the election," said Paul Kinzer, who represents free-agent closer Francisco Rodriguez."
Agents generally had thought about the possibility of a tax increase more than the GMs. Many of the club representatives said they likely wouldn't be able to determine until after Nov. 14 whether beating a tax hike was a trend.
"It's not off the wall," said Andrew Friedman, executive vice president for baseball operations of the AL champion Tampa Bay Rays. "We'd certainly be open-minded to it depending on what the rest of the terms of the deal are."
"It's not off the wall," said Andrew Friedman, executive vice president for baseball operations of the AL champion Tampa Bay Rays. "We'd certainly be open-minded to it depending on what the rest of the terms of the deal are."
The stakes are even higher for NFL players, because free agency for them begins March 1. Do they sign a deal now and risk making less in 2009 or do you wait it out and hope for the uncapped year? Either way they are going to be paying significantly more in 2009 and after.
3 comments:
wait, what?
It has to do with guaranteed money, get your big paycheck right now and then in 2009 and beyond you are making less and paying less in taxes. A 4.6% increase is a bunch when it means several hundred thousand more to the tax man, that's 3-4 fewer gold chains, 1-2 less cars, 1-2 less slumpbusters, or several thousand less to their charitites.
aw honey, my heart is bleedin for these guys
NOT!
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