Of course, insofar as contracts allow, teams in higher tax states may end up paying more for the equivalent talent—and so it would wash out for individual players.
But winning counts too, along with other factors. E.g., New England in Brady/Belichick prime got many out-of-town discounts.
Well Maura and the MoonBat lefties have changed the tax rate for millionaires in Massholechusetts so don’t expect very many free agents to come to Mass