Boston’s taxing pursuit of Juan Soto is over. (Mets)

mikcou

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I think Boston's financial (tax) advantage is understated here. If the Yankees and Mets are offering Soto 15/735... he'd have essentially the same net pay if he accepted a 15/675 offer from Boston. And if Boston is truly above $700M, then the NY "match" is closer to 15/775.

It's really ugly math for the Yankees and Mets, just how much they have to outbid Boston by.

All of these are assuming 15 year contracts, covering $40M-55M AAV.

View attachment 92892

In other words, to match the Red Sox, NY teams need to outbid us by $4M AAV.
These numbers are just laughably off. This was already covered, but NY does not have a marginal 9% higher tax rate (what would be needed to have a $60M difference on a $660M deal). Thats just terrible analysis.

Edit: That type of difference is like CA to Texas or some other no income tax state. Not between two high tax states.
 

Hank Scorpio

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These numbers are just laughably off. This was already covered, but NY does not have a marginal 9% higher tax rate (what would be needed to have a $60M difference on a $660M deal). Thats just terrible analysis.

Edit: That type of difference is like CA to Texas or some other no income tax state. Not between two high tax states.
NY: 50,000,000 * (1 - (.37 + .09 + .04)) = 25,000,000
BOS: 50,000,000 * (1 - (.37 + .09)) = 27,000,000

27,000,000 / (1 - (.37 + .09 + .04)) = 54,000,000

I'm not a tax accountant, but it seems pretty straight forward to me. BOS gives Soto $50M, he keeps ~$27M. NYC gives Soto $50M, he only keeps ~$25M.
 

mikcou

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NY: 50,000,000 * (1 - (.37 + .09 + .04)) = 25,000,000
BOS: 50,000,000 * (1 - (.37 + .09)) = 27,000,000

27,000,000 / (1 - (.37 + .09 + .04)) = 54,000,000

I'm not a tax accountant, but it seems pretty straight forward to me. BOS gives Soto $50M, he keeps ~$27M. NYC gives Soto $50M, he only keeps ~$25M.
We went through this pages ago (and is why the thread is titled the way it is). The NYC tax is only paid if he is a resident of NYC, which if he has any decent advice, he wont be.

Edit: You're also missing that unless the player is a resident of the state in which they play; everything is based on duty days in state. The reality is that these items out of non-income tax states (when the player also lives in such a state) are generally just noise.
 

BaseballJones

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Too bad for Boras, he can't hit a baseball.

Not clear Boras gets 15%.

If the Red Sox offer 15/705, and the Mets offer 15/735, and Soto went to the Mets because of Boras's commission, it's essentially Soto leaving $19,500,000 (after tax) on the table, so Boras can make an extra $4,500,000 (pre-tax). And that's assuming Boras gets 15%. If it's 5%, as suggested a few posts up, you have Soto giving up nearly $20M in take home pay, so Boras can make an extra $1.5M before taxes are even taken out.

In what world does a player give up $20M so their agent gets, what, an extra $800k?
Whatever the percentage is, the point is the same.

I'm not saying Soto is obligated to do anything for the benefit of Boras. I'm suggesting that Boras is going to do everything he can to get Soto to take the most money, as it directly benefits him. (Boras)
 

Auger34

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Would the announcement really come this late on a Saturday night? Maybe during the SNL cold opening?
Highly doubt it. Boras is smart enough to know to drop the news when max eyeballs will be on it.
Late on a random Saturday ain’t it (I saw a suggestion last week that that’s a good time. That’s hilariously wrong)
 

soxhop411

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Highly doubt it. Boras is smart enough to know to drop the news when max eyeballs will be on it.
Late on a random Saturday ain’t it (I saw a suggestion last week that that’s a good time. That’s hilariously wrong)
Eh. The Kawhi trade to the clippers broke at like 12 AM pst.
I dont think it matters when it breaks tonight (if it does) because it will be all anyone talks about tomorrow
 

johnlos

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We went through this pages ago (and is why the thread is titled the way it is). The NYC tax is only paid if he is a resident of NYC, which if he has any decent advice, he wont be.

Edit: You're also missing that unless the player is a resident of the state in which they play; everything is based on duty days in state. The reality is that these items out of non-income tax states (when the player also lives in such a state) are generally just noise.
You have to spend 183 days in a state to pay the tax right? So can almost certainly get around it.
 

Auger34

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Eh. The Kawhi trade to the clippers broke at like 12 AM pst.
I dont think it matters when it breaks tonight (if it does) because it will be all anyone talks about tomorrow
Trades and free agency are different no? More people are in on the transaction (multiple agents, teams) with a trade

I mean, at this point, Boras is completely controlling when it gets leaked. If it’s happening this weekend I’d guess it comes out tomorrow around 11 AM
 

glennhoffmania

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We went through this pages ago (and is why the thread is titled the way it is). The NYC tax is only paid if he is a resident of NYC, which if he has any decent advice, he wont be.

Edit: You're also missing that unless the player is a resident of the state in which they play; everything is based on duty days in state. The reality is that these items out of non-income tax states (when the player also lives in such a state) are generally just noise.
I didn't have the energy to go through this again, even if the PwC guy shows up.
 

glennhoffmania

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You have to spend 183 days in a state to pay the tax right? So can almost certainly get around it.
No. If you spend 183 days in a state you're treated as a resident. If you spend fewer days in a state you pay tax as a non-resident.
 

mikcou

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You have to spend 183 days in a state to pay the tax right? So can almost certainly get around it.
183 days is a typical residency test and because NYC is a residency only tax, in this case yes. Basically everywhere else has source based taxation and pretty minimal presence would trigger.

I didn't have the energy to go through this again, even if the PwC guy shows up.
It keeps coming up... I generally dont, but that one was outrageous in the 10%ish delta.
 

Auger34

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I don’t know why anyone thinks media coverage has anything to do with anything about this.
It doesn’t. The timing of it is completely controlled by Boras. He’s going to want to get the most eyeballs on it as possible.
it’s crazy to think otherwise.
 

Rasputin

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It doesn’t. The timing of it is completely controlled by Boras. He’s going to want to get the most eyeballs on it as possible.
it’s crazy to think otherwise.
All the eyeballs he cares about are in the same hotel and he’ll have them regardless of when the announcement is made and or leaked.
 

Auger34

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So that what?
So that as many potential clients and people get their eyes on it and interact with it? some might be in bed now? I mean this is just how news works. If you want the news to reach as many people as possible you leak it at certain times. If you want people to ignore it you release it at a certain time (like 11:25 PM on a Saturday)
If you are in complete control of an announcement, like Boras is, you announce it during the day

If this is announced before 10 AM tomorrow I will say I am wrong.
 
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LynnRice75

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Jul 15, 2005
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I watched and for a moment I thought fake Soto was going to make THE announcement.

I need this to end.
The fake Soto sketch got laughs with comments about the Yankees and the Mets.

Clearly this means one thing:

Soto coming to the Red Sox is no joke.
 

E5 Yaz

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This is some 4D posting from an Angels fan:

@BeyondTheHalo
Source: Juan Soto has expressed a desire to reunite with former Nationals teammate Anthony Rendon. “Soto has made it clear to teams that acquiring Rendon would increase their chances of signing him,” said one person familiar with the situation not authorized to speak publicly.