All Fields Required

Did the Income Tax Rate Help the Cubs Sign Jon Lester?

Did the Income Tax Rate Help the Cubs Sign Jon Lester?

Posted On
December 12
By
Stefan Schumacher
When the Chicago Cubs signed ace pitcher Jon Lester to their payroll with a six-year, $155 million deal, much of the excitement centered around matters related to baseball.

The Cubs were ready to contend again. The Lester contract, while maybe being more than the Cubs should have paid over that many years, signified relevance for the long struggling franchise. With General Manager Theo Epstein – who’d worked with Lester when he played for the Boston Red Sox – they’ve been completely rebuilding the organization around young talent nurtured in their minor league farm system.

But part of the reason Lester signed the contract with the Cubs rather than the Red Sox or one of the California teams (namely the San Francisco Giants) may have more to do with state income tax rates than the rise of the young Cubs.

Not Going to San Francisco

The Giants reportedly offered Lester a $150 million contract. Sounds pretty good when you consider he’d be going to the World Series champion and he’d be able to live in a great city with a mild climate.

The problem is the California state income tax rate – it’s the highest in the country at 13.3 percent. That would’ve cost Lester roughly $19.5 million over the life of the contract (see our chart above to see just how much more a player can make on a $150 million contract depending on the team he goes to and the state he plays in).

In Illinois, meanwhile, where the income tax rate is just 5 percent, he’d only lose $7.75 million over the course of the contract. The rate in Massachusetts isn’t much different than Illinois at 5.2 percent, but the Red Sox were offering Lester $20 million less than the Cubs, according to the USA Today.

Another player who may be happy to be back in Chicago is former Cub, Jeff Samardzija. After being traded to Oakland from the Cubs last year, the Chicago White Sox have traded for him and perhaps they have a leg up now in signing him to a long-term deal. He has one year left on his contract.

The $200 Million Man Pays a Lot in Taxes

Much was made of Los Angeles Dodgers’ pitcher Clayton Kershaw’s $215 million contract at the beginning of the year that made him the first $200 million pitcher in baseball’s history, however he could’ve presumably made a lot more in other places – almost any other place.

Kershaw’s contract, if he stays in California, will have him paying some $28.5 million in income taxes over seven years.

If he really wanted to make the most of his money, he could’ve gone to the Miami Marlins or the Texas Rangers, where the income tax costs their players a sum total of nothing. The Seattle Mariners in Washington are also not subject to an income tax, although their minimum wage is highest.

A Low Income Tax Doesn’t Necessarily Help You Win

Of course, the high tax rates in California haven’t stopped the Giants from winning. They’ve won three of the last five World Series titles.

New York’s income tax rate is 8.82 percent and certainly the Yankees haven’t struggled to secure big name players in free agency.

Pennsylvania’s income tax rate is only 3.07 percent and the Pittsburgh Pirates aren’t exactly a hot spot landing place.

In other sports we’ve seen big names go to Florida – Lebron James, Tracy McGrady, Grant Hill in the NBA. But there’s no way to tell what their real motivations were.

It was 1908 when the Cubs won their most recent world championship, so the tax rates – or anything else for that matter – haven’t helped them.

Perhaps Lester, one of the game’s top pitchers, is a big step towards ending the Cubs’ seemingly endless streak of futility. And hopefully he signed with the team for more than just the money.

4 comments

Leave a comment
  1. hhcg | Nov 14, 2016

    Nike Air Jordan 11

    huarache sneakers

    scarpe nike

    ugg store

    ugg clearance

    sac a main michael kors

    pandora bracelet charms

    Jordan Sneakers For Sale

    Toms Shoes For Women

    religion store

    michael kors bags outlet

    Ugg Outlet Online Store

    moncler jacket sale

    air jordan

    official NHL jerseys

    adidas store

    new jordan releases

    longchamp bags on sale

    chaussures nike pas cher

    newest lebron shoes

    cheap nike air max

    pandora charm bracelet sale

    Canada Goose Sale

    moncler coats for women

    louboutin heels

    adidas schoenen

    Moncler Sale

    nfl store

    cheap uggs

    chaussures de foot pas cher

    toms shoes outlet

    canada goose coats

    moncler girls

    Uggs Outlet Store

    Jordan Future

    Sheepskin Ugg Boots

    ugg boots cheap

    Canada Goose Official Site

    air force one pas cher

    sac coach soldes

    zapatilla adidas

    uggs for women

    Anelli Pandora

    23 is back

    hogan rebel donna

    Coach Bags On Sale

    adidas outlet stores online

    zapatillas running

    Moncler Jacket Womens

    canada goose jackets for women

    adidas outlet

    Canada Goose Outlet

    ugg factory outlet

    nike jordan shoes

    fitflops sale uk

    cheap christian louboutin

    Nike Zapatos

    chaussure basket homme

    Cheap Michael Kors

    prada outlet

    abercrombie and fitch store

    toms sale

    Soccer Boots Outlet nike

    pandora jewelry store

    goedkope nike air max

    chaussure Nike homme

    reebok running shoes

    Toms Outlet Online

    pandora beads

    Ray ban sale online

    new yeezy shoes

    uggs for cheap

    Nike Store

    nike schuhe günstig

    nike mercurial soccer cleats

    tru religion jeans

    uggs outlet

    Jordan Schoenen

    nike chaussures

    canada goose jacket outlet

    oakley sunglasses clearance

    christian louboutin outlet

    Negozi Pandora

    nike sportschuhe

    ugg boots for women

    nike air max running shoes

    botas de futbol

    ugg outlet online

    canada goose vest

    nike sneakers

    pandora outlet store

    michael kors handbags on sale

    ugg boots outlet online

    Air Jordan Release Date

    vans shoe store

    nike sportschuhe damen

    Chaussure Nike Pas Cher

    Ugg Boots On Clearance

    zapatillas nike baratas

    pandora online

    nike sb stefan janoski

    Lebron 13

    Air Jordan News

    pandora rings

    nike free

    womens nike air max

    retro jordans for cheap

    canada goose online store

    longchamp tote bag

    coach factory outlet online

    cheap uggs for women

    Jordan Store

    zapatos de futbol nike

    Nike Online Store

    Canada Goose Sale Outlet

    converse store

    hyperdunk 2014

    australia uggs outlet

    nike tn pas cher

    nike damenschuhe

    Timberland skor

    Air Max 90

    Moncler Store

    canada goose kensington

    hogan scontate

    Canada Goose Online

    scarpe hogan outlet

    cheap real uggs

    Womens Ugg Boots

    australia uggs outlet

    ray ban wayfarer eyeglasses

    moncler outlet

    billige nike sko

    ugg boots classic

    Ugg boots Sale

    Uomo Hogan

    Moncler Outlet Online

    nike joggesko

    nike shoes

    new pandora charms

    timberland outlet

    adidas kläder

    cheap air max outlet

    nike air schuhe herren

    nike air jordan pas cher

    Orecchini Pandora

    nike air

    portafoglio michael kors

    canada goose sale online

    hhcg 11.14
  2. bgbgfn | Oct 17, 2016
  3. bnfnfn | Oct 17, 2016
  4. dfdbg | Oct 17, 2016

    Leave a comment