The ESPM chuckleheads are (as one would expect) orgasmic over the James decision to join the other two superstars in Miami. Afterall, we know that to ESPN and their jocksniffers, no athlete can do wrong.
One of the biggest items of praise I'm hearing is that James made this coice purly based on "winning".
If only it were so.
Like almost every other pro athlete, James chose his destination based on money. While Cleveland was able to offer a minor amount more than other suitors, there is one factor that is being conveniently ignored by our fine sports journalist media.
Cleveland/Ohio has a State Income Tax rate of ~6%, plus a variety of local/city taxes.
New York (the other big suitor) is far worse, with a potential City/State income tax rate of ~12%.
When discussing large numbers, like say $100,000,000, those percentages add up to alot. In Cleveland, thats $6,000,000. In New York, thats $12,000,000. And thats just the start, both jurisdictions have other taxation vehicles to aquire the wealth James would earn.
Florida, however, has no Personal Income Tax. Total Income Tax (State) Burden for James = $0.00
Maybe winning wasn't quite the motivation it's being played up to be. Maybe James saw an opportunity to win (doubtless Miami is his best chance, since he knows he's not good enough to win without at least two other superstars supporting him), but I am sure his agent and accountant also ensured he know that his income could be maximizes in Miami. No taxes, plenty of exposure, a perfect place for "lifestyle" chasers and plenty of opportunity to market oneself.
I'm willing to bet the tax rate, and his desire to avoid paying taxes, factored heavily into James decision. Never underestimate the desire of folks to not pay taxes if they can.
New York, even with the Tax offered him the chance to make the most amount of money because of endorsements.
In the world today, location is almost irrelevant when it comes to endorcement. The money in endorcements comes from two places, shoe contrat deals, and TV. Neither of which is tied in any form to what city one plays in. Hype and winning drives endorcement far more than city. Kinda sad New Yorkers still think New York drives endorcements more than other cities.
And of course, James will not pay a cent in State Income Tax on those shoe deals and TV spots in Florida, where he would lose 12%+ right off the top in New York.
Sorry, but ignoring the tax rate, like the ESPN chuckleheads are doing, means you're simply not looking at the big picture....the way every pro athlete and every pro agent does.
Originally Posted by MCBNY
I think he has so much money that a sum of ~$12 million wouldn't really make too much of a difference in his decision.
He is a coward.
A laughable assertion. Players leave teams all the time for fractionally less than $12 mil (and again, all income considered, it's probably more like 12 mil....a year). It's easy to say "meh, 12 mil ain't nothing" when it's not YOUR 12 mil. I assure you, pro athletes and pro agents do not share such a flippant attitude about it.
There is no doubt in my mind the tax rates of New York and Florida helped drive this decision. No doubt whatsoever.