But i dont think this LeBron deal was just about money or being a hired gun.
Didnt he pass up NYC's money and endorsement deals to win in Miami alongside Wade.
As Reynaldo said, no state taxes in Miami. So it's a wash.
But i dont think this LeBron deal was just about money or being a hired gun.
Didnt he pass up NYC's money and endorsement deals to win in Miami alongside Wade.
As Reynaldo said, no state taxes in Miami. So it's a wash.
C'mon, no one really thinks he went to Miami for the $, do they?
But i dont think this LeBron deal was just about money or being a hired gun.
Didnt he pass up NYC's money and endorsement deals to win in Miami alongside Wade.
As Reynaldo said, no state taxes in Miami. So it's a wash.
I don't think that's accurate.
Yes, Florida lacks a state tax. But that's not the same thing as not having to pay tax at all; players pay the lion's share of their taxes to the feds.
Moreover, NBA players actually have to pay taxes to the other states in which they play games (for which I think they receive some degree of credit in their home state)
So yes, it's an incentive, but it doesn't come close to washing out with the money he left on the table.
But i dont think this LeBron deal was just about money or being a hired gun.
Didnt he pass up NYC's money and endorsement deals to win in Miami alongside Wade.
As Reynaldo said, no state taxes in Miami. So it's a wash.
I don't think that's accurate.
Yes, Florida lacks a state tax. But that's not the same thing as not having to pay tax at all; players pay the lion's share of their taxes to the feds.
Moreover, NBA players actually have to pay taxes to the other states in which they play games (for which I think they receive some degree of credit in their home state)
So yes, it's an incentive, but it doesn't come close to washing out with the money he left on the table.
I cannot vouch for the accuracy of this article but it provides a compelling analysis of the tax implications of Lebron's move to Miami.
Under the National Basketball Association (NBA) rules, there is a salary cap subject to a complicated set of rules and exceptions. The actual cap changes from year to year based on a number of factors, including the amount of revenue generated by the NBA in the prior year. For the 2010-2011 season, the cap is $58,044,000.
The whole idea behind the cap is to restrict the amount of money that teams in bigger markets (think New York and Los Angeles) can spend on players without paying a luxury tax. The result is that the playing field for teams in smaller markets (think Minnesota and Portland) is made relatively level.I won't profess to know the complicated rules and exceptions which lead to last minute sign and trades in the NBA. But what was obvious after the Heat signed Wade and Bosh was that it was likely there was not enough space under the cap to sign James at the maximum salary allowable without some significant maneuvering. Reportedly, unless the Heat cleared their rosters, each of the three players would sign for less than the maximum and "lose" about $7 million over the next five years. If James had gone to the New York Knicks, the team actively wooing James for nearly two years, he would have been able to sign for more money. The Knicks had done a little housecleaning, and even with the addition of Amar'e Stoudemire, had almost $19 million to spend on James.
But James, it appears, had done his homework on the tax implications.
In addition to the basketball reasons for signing with the Heat, James is going to walk away from this deal with less money in his contract but more money in his pocket. This is because Florida offers a number of tax advantages over New York -- a fact that hasn't gone unnoticed in the tax world.
Assuming that James took just under $17 million from the Heat (which is probably pretty close to accurate), he would pay no state income tax, leaving him with the same $17 million. If he had gone to New York, even if he nabbed an additional $1.5 million (as the salary difference has been speculated), he would shell out close to $1.7 million in New York state taxes. That doesn't count James' endorsements with companies like Nike, Sprint and McDonald's. Those deals are said to bring in $40 million per year for James, landing him at #19 on the Forbes list of the 100 most powerful celebrities of 2009 (just behind his idol, Michael Jordan).
The total bill? Over five years, that means James could save more than $25 million in state taxes alone by relocating to Miami over New York. And that doesn't count other taxes such as local taxes (New York has a bunch) or property taxes (on average, New Yorkers pay a bigger percentage of their income for property taxes than Floridians). In fact, overall, Florida has a fairly attractive tax picture. Compared to other states, it is ranked by the Tax Foundation as 47th in terms of state and local tax burdens; New York, on the other hand, is 2nd (just behind New Jersey, the home of the Nets, also desperate to sign James).
Is the lure of lower taxes enough to have convinced James to make the switch? Not on its own: James is too smart for that. But you can bet it figured into the equation. He would not be the first mega-star lured down to Florida for tax reasons. Prior to his legal and marital woes, Tiger Woods was said to have relocated from California to Florida primarily in order to save on taxes.
I'm sure over the next few days we'll be bombarded with more articles trying to figure out why James did it -- especially in light of this explosive letter from the owner of his soon to be former team. Only James himself knows the real reason for the move. Fame, championship rings, sun ... could be. But don't rule out the money.
But i dont think this LeBron deal was just about money or being a hired gun.
Didnt he pass up NYC's money and endorsement deals to win in Miami alongside Wade.
As Reynaldo said, no state taxes in Miami. So it's a wash.
C'mon, no one really thinks he went to Miami for the $, do they?
Of course not......he went there to win championships with his buddies.....and how far off is the day when 5 guys(let's just add Kobe and DHoward to the Heat for arguments sake) get together and decide they want to see if they can go undefeated and win 10 rings in a row? I'm not saying it's gonna happen, but the fact that it's possible and COULD happen makes the NBA a joke.
But i dont think this LeBron deal was just about money or being a hired gun.
Didnt he pass up NYC's money and endorsement deals to win in Miami alongside Wade.
As Reynaldo said, no state taxes in Miami. So it's a wash.
I don't think that's accurate.
Yes, Florida lacks a state tax. But that's not the same thing as not having to pay tax at all; players pay the lion's share of their taxes to the feds.
Moreover, NBA players actually have to pay taxes to the other states in which they play games (for which I think they receive some degree of credit in their home state)
So yes, it's an incentive, but it doesn't come close to washing out with the money he left on the table.
I cannot vouch for the accuracy of this article but it provides a compelling analysis of the tax implications of Lebron's move to Miami.
Under the National Basketball Association (NBA) rules, there is a salary cap subject to a complicated set of rules and exceptions. The actual cap changes from year to year based on a number of factors, including the amount of revenue generated by the NBA in the prior year. For the 2010-2011 season, the cap is $58,044,000.
The whole idea behind the cap is to restrict the amount of money that teams in bigger markets (think New York and Los Angeles) can spend on players without paying a luxury tax. The result is that the playing field for teams in smaller markets (think Minnesota and Portland) is made relatively level.I won't profess to know the complicated rules and exceptions which lead to last minute sign and trades in the NBA. But what was obvious after the Heat signed Wade and Bosh was that it was likely there was not enough space under the cap to sign James at the maximum salary allowable without some significant maneuvering. Reportedly, unless the Heat cleared their rosters, each of the three players would sign for less than the maximum and "lose" about $7 million over the next five years. If James had gone to the New York Knicks, the team actively wooing James for nearly two years, he would have been able to sign for more money. The Knicks had done a little housecleaning, and even with the addition of Amar'e Stoudemire, had almost $19 million to spend on James.
But James, it appears, had done his homework on the tax implications.
In addition to the basketball reasons for signing with the Heat, James is going to walk away from this deal with less money in his contract but more money in his pocket. This is because Florida offers a number of tax advantages over New York -- a fact that hasn't gone unnoticed in the tax world.
Assuming that James took just under $17 million from the Heat (which is probably pretty close to accurate), he would pay no state income tax, leaving him with the same $17 million. If he had gone to New York, even if he nabbed an additional $1.5 million (as the salary difference has been speculated), he would shell out close to $1.7 million in New York state taxes. That doesn't count James' endorsements with companies like Nike, Sprint and McDonald's. Those deals are said to bring in $40 million per year for James, landing him at #19 on the Forbes list of the 100 most powerful celebrities of 2009 (just behind his idol, Michael Jordan).
The total bill? Over five years, that means James could save more than $25 million in state taxes alone by relocating to Miami over New York. And that doesn't count other taxes such as local taxes (New York has a bunch) or property taxes (on average, New Yorkers pay a bigger percentage of their income for property taxes than Floridians). In fact, overall, Florida has a fairly attractive tax picture. Compared to other states, it is ranked by the Tax Foundation as 47th in terms of state and local tax burdens; New York, on the other hand, is 2nd (just behind New Jersey, the home of the Nets, also desperate to sign James).
Is the lure of lower taxes enough to have convinced James to make the switch? Not on its own: James is too smart for that. But you can bet it figured into the equation. He would not be the first mega-star lured down to Florida for tax reasons. Prior to his legal and marital woes, Tiger Woods was said to have relocated from California to Florida primarily in order to save on taxes.
I'm sure over the next few days we'll be bombarded with more articles trying to figure out why James did it -- especially in light of this explosive letter from the owner of his soon to be former team. Only James himself knows the real reason for the move. Fame, championship rings, sun ... could be. But don't rule out the money.
Amen. Riley just jerked everyone else and that's how it goes.
"It's not like it used to be......" - stop it. The game is the game and Riley worked it to perfection. The Heat have been waiting for this moment just like all of the other players in this years free agency and Riley took the Heat to the top. Props to Riley and the Heat.
Meanwhile my Suns chose to give Channing Frye $30 mil???? ugly.
What is this dude going to do to field a competitive team?
More than likely tear down and rebuild through the draft...I don't know and being here in Akron I haven't even thought that far....
The draft already took place, and he promised a better record this yr than the Heat. Tall order. Maybe he can pay to have Professor Farnsworth genetically engineer some Atomic Supermen basketball playeurs.
Faux - would you be interested in bringing a class action suit with me on behalf of all Cleveland ticketholders against Dan Gilbert and the Cav's organization for Gilbert's "personal promise" to win a championship before Bron-Bron and the Heat?
Mark my words, someone will bring this suit next year when Miami wins it all.
What is this dude going to do to field a competitive team?
More than likely tear down and rebuild through the draft...I don't know and being here in Akron I haven't even thought that far....
The draft already took place, and he promised a better record this yr than the Heat. Tall order. Maybe he can pay to have Professor Farnsworth genetically engineer some Atomic Supermen basketball playeurs.
Dude asked what is he going to do to field a competitive team. My reply did was in regards to being better than Miami this year but what could be done over a period of time to field a better team.
Shit just because the Heat has those three doesn't mean that they will win it all....see the US Olympic team w/ LeQuitter on it for example (bronze).
Faux - would you be interested in bringing a class action suit with me on behalf of all Cleveland ticketholders against Dan Gilbert and the Cav's organization for Gilbert's "personal promise" to win a championship before Bron-Bron and the Heat?
Mark my words, someone will bring this suit next year when Miami wins it all.
Sue Gilbert for saying that LeQuitter....gave up and quit in the Boston and Orlando series..slander
What is this dude going to do to field a competitive team?
More than likely tear down and rebuild through the draft...I don't know and being here in Akron I haven't even thought that far....
The draft already took place, and he promised a better record this yr than the Heat. Tall order. Maybe he can pay to have Professor Farnsworth genetically engineer some Atomic Supermen basketball playeurs.
Dude asked what is he going to do to field a competitive team. My reply did was in regards to being better than Miami this year but what could be done over a period of time to field a better team.
Shit just because the Heat has those three doesn't mean that they will win it all....see the US Olympic team w/ LeQuitter on it for example (bronze).
I'm sorry man, I was just messing with you. Just be prepared for the Cavs to be in Knick country, welcome to the club!
Comments
As Reynaldo said, no state taxes in Miami. So it's a wash.
C'mon, no one really thinks he went to Miami for the $, do they?
I don't think that's accurate.
Yes, Florida lacks a state tax. But that's not the same thing as not having to pay tax at all; players pay the lion's share of their taxes to the feds.
Moreover, NBA players actually have to pay taxes to the other states in which they play games (for which I think they receive some degree of credit in their home state)
So yes, it's an incentive, but it doesn't come close to washing out with the money he left on the table.
I cannot vouch for the accuracy of this article but it provides a compelling analysis of the tax implications of Lebron's move to Miami.
http://www.walletpop.com/blog/2010/07/09/did-saving-25-million-taxes-fuel-lebron-james-miami-heat-pick/
Under the National Basketball Association (NBA) rules, there is a salary cap subject to a complicated set of rules and exceptions. The actual cap changes from year to year based on a number of factors, including the amount of revenue generated by the NBA in the prior year. For the 2010-2011 season, the cap is $58,044,000.
The whole idea behind the cap is to restrict the amount of money that teams in bigger markets (think New York and Los Angeles) can spend on players without paying a luxury tax. The result is that the playing field for teams in smaller markets (think Minnesota and Portland) is made relatively level.I won't profess to know the complicated rules and exceptions which lead to last minute sign and trades in the NBA. But what was obvious after the Heat signed Wade and Bosh was that it was likely there was not enough space under the cap to sign James at the maximum salary allowable without some significant maneuvering. Reportedly, unless the Heat cleared their rosters, each of the three players would sign for less than the maximum and "lose" about $7 million over the next five years. If James had gone to the New York Knicks, the team actively wooing James for nearly two years, he would have been able to sign for more money. The Knicks had done a little housecleaning, and even with the addition of Amar'e Stoudemire, had almost $19 million to spend on James.
But James, it appears, had done his homework on the tax implications.
In addition to the basketball reasons for signing with the Heat, James is going to walk away from this deal with less money in his contract but more money in his pocket. This is because Florida offers a number of tax advantages over New York -- a fact that hasn't gone unnoticed in the tax world.
Assuming that James took just under $17 million from the Heat (which is probably pretty close to accurate), he would pay no state income tax, leaving him with the same $17 million. If he had gone to New York, even if he nabbed an additional $1.5 million (as the salary difference has been speculated), he would shell out close to $1.7 million in New York state taxes. That doesn't count James' endorsements with companies like Nike, Sprint and McDonald's. Those deals are said to bring in $40 million per year for James, landing him at #19 on the Forbes list of the 100 most powerful celebrities of 2009 (just behind his idol, Michael Jordan).
The total bill? Over five years, that means James could save more than $25 million in state taxes alone by relocating to Miami over New York. And that doesn't count other taxes such as local taxes (New York has a bunch) or property taxes (on average, New Yorkers pay a bigger percentage of their income for property taxes than Floridians). In fact, overall, Florida has a fairly attractive tax picture. Compared to other states, it is ranked by the Tax Foundation as 47th in terms of state and local tax burdens; New York, on the other hand, is 2nd (just behind New Jersey, the home of the Nets, also desperate to sign James).
Is the lure of lower taxes enough to have convinced James to make the switch? Not on its own: James is too smart for that. But you can bet it figured into the equation. He would not be the first mega-star lured down to Florida for tax reasons. Prior to his legal and marital woes, Tiger Woods was said to have relocated from California to Florida primarily in order to save on taxes.
I'm sure over the next few days we'll be bombarded with more articles trying to figure out why James did it -- especially in light of this explosive letter from the owner of his soon to be former team. Only James himself knows the real reason for the move. Fame, championship rings, sun ... could be. But don't rule out the money.
Read more: http://www.walletpop.com/blog/2010/07/09/did-saving-25-million-taxes-fuel-lebron-james-miami-heat-pick/#ixzz0tDDQs7Xk
Of course not......he went there to win championships with his buddies.....and how far off is the day when 5 guys(let's just add Kobe and DHoward to the Heat for arguments sake) get together and decide they want to see if they can go undefeated and win 10 rings in a row? I'm not saying it's gonna happen, but the fact that it's possible and COULD happen makes the NBA a joke.
It doesn't address my point.
Amen. Riley just jerked everyone else and that's how it goes.
"It's not like it used to be......" - stop it. The game is the game and Riley worked it to perfection. The Heat have been waiting for this moment just like all of the other players in this years free agency and Riley took the Heat to the top. Props to Riley and the Heat.
Meanwhile my Suns chose to give Channing Frye $30 mil???? ugly.
i disagree, but i guess we're both just guessing. and that's alot of guessing.
bye bye LeQuitter and good riddance.....beeeeooootttchhhh (c) Too Shirt
such a bad look, dude
for who....i like the shit
More than likely tear down and rebuild through the draft...I don't know and being here in Akron I haven't even thought that far....
The draft already took place, and he promised a better record this yr than the Heat. Tall order. Maybe he can pay to have Professor Farnsworth genetically engineer some Atomic Supermen basketball playeurs.
Mark my words, someone will bring this suit next year when Miami wins it all.
Dude asked what is he going to do to field a competitive team. My reply did was in regards to being better than Miami this year but what could be done over a period of time to field a better team.
Shit just because the Heat has those three doesn't mean that they will win it all....see the US Olympic team w/ LeQuitter on it for example (bronze).
Sue Gilbert for saying that LeQuitter....gave up and quit in the Boston and Orlando series..slander
BINGO!
U think Riley was more instrumental than Wade?
Indiana Pacers > Argentinian National Team > Italian National Team
I thought you'd like that.
See, your Pacers do have a shot at a ring afterall!
The Brawl was in 2004. 6 years and counting being a fucked franchise.
But im patient.