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Location, tax rates can have big impact on contract’s value

FILE - In this May 9, 2017, file photo, then-Utah Jazz forward Gordon Hayward talks to the media during the NBA teams end of season press conference in Salt Lake City. When it comes to the IRS, the dollars connected to a player’s contract don’t tell the whole story about how much he’s going to be making. Where a player choses to play _ the Boston Celtics or the Miami Heat _ could go a long way in determining how much money he ends up receiving. Robert Raiola, who includes many professional athletes among his clients in his role as director of sports and entertainment for the PKF O’Connor Davies accounting firm, cites former Utah Jazz forward Gordon Hayward’s recent deal with the Celtics as an example. (Kristin Murphy/The Deseret News via AP, File)
FILE - In this May 9, 2017, file photo, then-Utah Jazz forward Gordon Hayward talks to the media during the NBA teams end of season press conference in Salt Lake City. When it comes to the IRS, the dollars connected to a player’s contract don’t tell the whole story about how much he’s going to be making. Where a player choses to play _ the Boston Celtics or the Miami Heat _ could go a long way in determining how much money he ends up receiving. Robert Raiola, who includes many professional athletes among his clients in his role as director of sports and entertainment for the PKF O’Connor Davies accounting firm, cites former Utah Jazz forward Gordon Hayward’s recent deal with the Celtics as an example. (Kristin Murphy/The Deseret News via AP, File)

By Associated Press 5 min read

With the mind-boggling money being doled out in NBA contracts, players don’t seem to be overly concerned about state taxes – or the lack of them.

Stephen Curry signed a $201 million deal with Golden State and Blake Griffin got a $175 million from the Los Angeles Clippers. The rub: In California, the top tax rate of 13.3 percent is the highest in the nation. To get just a rough indication of how much state tax they might face, consider that 13.3 percent of $201 million is about $26.7 million.

Meanwhile, Houston Rockets guard James Harden signed a $228 million extension to play in Texas, which has no state income tax.

Players are keenly aware of the differences, but it’s just one of many factors in their decisions.

How big a factor, it depends on the player and situation.