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For stars such as Dwight Howard, less is more in free agency
Sports Illustrated ^ | Ian Thomsen

Posted on 07/08/2013 8:21:29 PM PDT by nickcarraway

Dwight Howard, LeBron James, Andre Iguodala and Tim Duncan all share in a trend that is thriving, even as it shrinks the players' bank accounts. All four are among the growing list of stars who could have cashed in for larger salaries as free agents -- but settled for less money on the open market.

This is not about creating sympathy for stars who are still making eight-figure salaries annually. They may give up a few million here and there, but they're still making out very well in the end.

The point is that a dream is coming true for the NBA and its owners, who two years ago locked out the players in hopes of creating equitability and competitiveness throughout the league. One surprising outcome of Howard's long-suffering pursuit of free agency is that it ended with the richest of all teams, the Lakers, not getting richer. While it's not as if Howard jumped to the Charlotte Bobcats -- he moved to another large market, in Houston -- he did snub the Lakers and their longstanding reputation as the ultimate destination for NBA stars. More shocking was that he lost $30 million up front by accepting the Rockets' lesser four-year, $88 million offer instead of the Lakers' five-year max deal.

(Excerpt) Read more at sportsillustrated.cnn.com ...


TOPICS: Business/Economy; Sports
KEYWORDS:

1 posted on 07/08/2013 8:21:29 PM PDT by nickcarraway
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To: nickcarraway

Do the tax math - he ends up with more in pocket per year.


2 posted on 07/08/2013 8:28:08 PM PDT by piytar (The predator-class is furious that their prey are shooting back.)
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To: piytar

The tax saving of playing for a Texas team or Florida team are significant, but in the end the state tax collector will get their money.

For example, if you play for the Texas Rangers, and play a road game at Yankee Stadium, you will write a check to the state and city tax man before you leave town.


3 posted on 07/08/2013 8:50:27 PM PDT by Wellington VII
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To: Wellington VII

Yup. But you play half your games at home...


4 posted on 07/08/2013 9:04:03 PM PDT by piytar (The predator-class is furious that their prey are shooting back.)
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To: piytar

Well yes, it helps to play half your games in Texas, but the point was that it is hard to avoid the tax man altogether when he has his hand out after 75% of your road games.


5 posted on 07/08/2013 9:37:22 PM PDT by Wellington VII
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To: Wellington VII

No argument there.


6 posted on 07/08/2013 9:47:05 PM PDT by piytar (The predator-class is furious that their prey are shooting back.)
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To: Wellington VII

Actually he’ll play more than half in TX. His team plays some games against Dallas & San Antonio. Also Memphis Grizzlies in TN and Miami & Orlando in FL, so he may only be out 1/3 of the time.


7 posted on 07/08/2013 10:17:30 PM PDT by packrat35 (Admit it! We are almost ready to be called a police state!)
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To: nickcarraway

I’ll believe there is a financial crisis when Professional athletes start earning less money.


8 posted on 07/08/2013 10:28:17 PM PDT by Cowboy Bob (Democrats: Robbing Peter to buy Paul's vote.)
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To: Cowboy Bob

Earning less money? Or start being paid less money? Two different things.


9 posted on 07/08/2013 10:34:25 PM PDT by nickcarraway
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To: nickcarraway
True. Should be “paid” less money.
10 posted on 07/09/2013 12:14:21 AM PDT by Cowboy Bob (Democrats: Robbing Peter to buy Paul's vote.)
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