Colts at disadvantage in Free Agency?

[Lucky Colts Fan]

I just watched a segment about teams with an advantage in Free Agent negotiations.

 

The Dolphins, Bucs, Jags, Cowboys, Texans, Raiders, and Seahawks all have the advantage of telling free agents that if they sign with their team, they don't have to pay state income taxes.  In some cases, that's up to a 10% increase in income, which is VERY significant when talking about contracts worth millions of dollars.

 

Is that a fair bargaining chip for those teams?  A number of teams (like the Colts) already have an uphill battle trying to convince players to come live and work in a smaller midwestern market, in the cold, in the winter... while a team like the Dolphins can tempt a player with warm, sunny beaches in Miami AND you get to keep more of your money?!?

 

[WifiGuy]

6 minutes ago, Lucky Colts Fan said:

I just watched a segment about teams with an advantage in Free Agent negotiations.

 

The Dolphins, Bucs, Jags, Cowboys, Texans, Raiders, and Seahawks all have the advantage of telling free agents that if they sign with their team, they don't have to pay state income taxes.  In some cases, that's up to a 10% increase in income, which is VERY significant when talking about contracts worth millions of dollars.

 

Is that a fair bargaining chip for those teams?  A number of teams (like the Colts) already have an uphill battle trying to convince players to come live and work in a smaller midwestern market, in the cold, in the winter... while a team like the Dolphins can tempt a player with warm, sunny beaches in Miami AND you get to keep more of your money?!?

 

It most certainly helps, along with who the QB is, and the head coach and scheme

[WoolMagnet]

I always thought that it was odd that the league never did anything to balance it out.

It is most certainly an advantage.

  Teams in those states should have an “adjustment” in their Salary caps.
  It seems quite obvious to me that it should be addressed.  And its not just at the player level.  Coaches, owners, vendors, etc are also affected.

[AwesomeAustin]

It is what it is. I can see where some say it’s an unfair advantage but cost of living is also higher than a lot of places.  500k gets you an extremely nice home in Indy but an apartment in Miami.  It’s all part of it and no way to regulate it. 

[jet1968]

Other then Seattle all of them teams are terrible, so it most not work out to good .

[NewColtsFan]

It’s the same in all spirts, not just football.   And that’s just the way it goes.    Life isn’t always fair. 

 

By the way, you can add Arizona teams too since they don’t have state income tax as well. 

[shasta519]

FL also has the beach (for TB and MIA) and DAL has the history...though SEA is probably not getting a lot of love right now.

 

But from a financial standpoint...I am not sure how huge of a difference it is...when you factor in cost of livng indexes.

 

Indy vs. MIA (47.4% difference overall)

 

 

Indy vs. TB (19.9% difference overall)

 

 

Indy vs. DAL (21.7% difference overall)

 

 

I guess it comes down to where you plan to live and what you plan to do with the money. As you can see in these examples, $10M (for example) won't go nearly as far as it would in Indy (even without paying state taxes).

 

If you are planning on investing that money right away...that's different I suppose.

[ColtStrong2013]

It’s for 8 games of the year, as you pay income tax for each state you play in. Moneys earned on game day. I’m sure it’s a decent savings, but not a huge advantage, IMO.

[neug3246]

1 hour ago, ColtStrong2013 said:

It’s for 8 games of the year, as you pay income tax for each state you play in. Moneys earned on game day. I’m sure it’s a decent savings, but not a huge advantage, IMO.

Is that true?? I work/live in Washington but often travel to other states for work. Just because I'm working in a different state with state income tax doesn't mean I get state income tax taken out of my paycheck bc I'm not a resident of that state.

[LockeDown]

Teams like Green Bay and Pittsburgh have set the standard.  Be smart, draft well and use FA as needed but not too much. 

[atapcl]

9 hours ago, Lucky Colts Fan said:

I just watched a segment about teams with an advantage in Free Agent negotiations.

 

The Dolphins, Bucs, Jags, Cowboys, Texans, Raiders, and Seahawks all have the advantage of telling free agents that if they sign with their team, they don't have to pay state income taxes.  In some cases, that's up to a 10% increase in income, which is VERY significant when talking about contracts worth millions of dollars.

 

Is that a fair bargaining chip for those teams?  A number of teams (like the Colts) already have an uphill battle trying to convince players to come live and work in a smaller midwestern market, in the cold, in the winter... while a team like the Dolphins can tempt a player with warm, sunny beaches in Miami AND you get to keep more of your money?!?

 

The advantage is for the 8 home games. They will still pay taxes in the other states they play as well as federal taxes in all states.

[Timo1]

I don't think it works that way. I live in Illinois and work in iowa and my company is based in texas. I only pay state taxes in Illinois.. 

[Blueblood23]

2 hours ago, Timo1 said:

I don't think it works that way. I live in Illinois and work in iowa and my company is based in texas. I only pay state taxes in Illinois.. 

It works that way in the NFL.

[Lucky Colts Fan]

Huh, I didn't realize the gamechecks were taxed based on where the game was played.  Learn something new every day!  I hope the Colts brass reminds prospective free agents that their game checks for the away games against the Jags and Texans will have a little extra.  

 

It also hadn't occurred to me how much of a factor cost of living can be.

 

And there's a reason guys sign with teams like New England and Green Bay.  Maybe we don't want free agents that can be swayed by things not even related to football like sunny beaches and a little extra money.  We want guys that love football and want to win championships.  

[TheMose]

I'll tell you what will increase free agent signings now. States with legal recreational weed. Now that the NFL won't suspend you for it, several players will see that as a huge plus. 

[Jdubu]

2 hours ago, Blueblood23 said:

It works that way in the NFL.

I do recall that being part of the anti trust agreement or something that the nfl/government partnership came up with. I think it’s part of the stadiums being tax payer funded maybe?? But I do think you’re right, it’s the away games that have taxes taken out when you live in a state tax free home. 

[OffensivelyPC]

Here's the thing about states that don't have income taxes - everything else is more expensive.  For the most part, it's a wash.  States will get their taxes one way or another, whether it's income taxes, sales taxes or any other applicable taxes.  So if there's any advantage at all, it's not enough that would make a player take a smaller deal (or even same deal) to be in a state that doesn't have income taxes.

[Restinpeacesweetchloe]

Signing Rivers might help us get Funchess back.

[coltsfanej]

Taxation is theft. Don't blame the league. Blame the government. 

[Smonroe]

15 hours ago, NewColtsFan said:

It’s the same in all spirts, not just football.   And that’s just the way it goes.    Life isn’t always fair. 

 

By the way, you can add Arizona teams too since they don’t have state income tax as well. 

 

Arizona does have a state income tax.  As far as those states without it getting an unfair advantage, I'm pretty sure that they have accountants and contract lawyers that help them even things out.

[NewColtsFan]

2 hours ago, Smonroe said:

 

Arizona does have a state income tax.  As far as those states without it getting an unfair advantage, I'm pretty sure that they have accountants and contract lawyers that help them even things out

[NewColtsFan]

2 hours ago, Smonroe said:

 

Arizona does have a state income tax.  As far as those states without it getting an unfair advantage, I'm pretty sure that they have accountants and contract lawyers that help them even things out.

You are correct.   Thanks for that.  But I did see that Washington State has no state tax.   That helps the Seahawks.