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Friday, November 7, 2008

Baseball and Taxes

Have you heard?  Get this... Agents of baseball players all around the country have demands.  You have a baseball player who already is being promised X amount of millions each year and then there is a signing bonus.  The agents are asking that they players be paid their signing bonuses before the end of 2008 or that it be increased by a certain percent.  Why, you ask?  So that when the highest tax bracket of 35% goes up to 39.6%, they are not taking a hit.
If they are paid the bonus this year, the taxes are still 'low', so they get what they thought they would get.  If they increase the bonus by whatever percent, then they will still pocket the same amount when they file taxes next year at, what we assume will be, a higher tax rate.
Next year's minimum annual pay, for a major league player, is $400,000.

So, the way the system works... in the end we will all be paying higher prices for our game tickets, hot dogs, beers; and if you don't know.. the price of those things are already outrageous!

Baseball Commish, Bud Selig, is encouraging all ballparks, new and old, to "keep those $10 tickets!"  He knows things need to move forward, business as usual, but wants all to remain cognizant of our economy.
I know myself, that if the Twins were to get rid of the cheap seats when the new ballpark opens, I won't be making it to many games.  Right now the 'cheap seats' are $7-$12, that's a great price for several hours of fun and sports!!

It's a moot point.  I just don't understand how agents can justify the advance or increase of the bonus... millions of dollars are already being paid out, does a couple hundred thousand  really make a difference?

4 comments:

Kristi @ Mi Vida Ocupada said...

I have always thought athletes were paid ridiculously, I guess their agents are too!

BB Live Updates said...

It's all insane to me... I have never understood the unreasonable (in my mind) amounts of money that the athletes make now days.
I find it particularly sad that say baseball for instance, which is supposed to be an all American family sport.... is no longer affordable for many if not most familys to attend as a family. My family of 5 has to count on well over $100 for a game and that is purchasing cheap seats... want a good seat? pshhh... hundreds$$$$$ in costs for a family of 5! Sad ... Sad... Sad....

Dawn said...

I was....and once again am....lucky enough to have a minor league ball park close by. My kids enjoyed those games as much as any major league game when they were younger. Now that they're grown, they can take themselves!!!

Joe and I hit the local (it's within 5 minutes of my house) minor league ball park several times this past season. They give a law enforcement discount, so front row right behind the dugout seats were $7 each. They still rip you off on food and drinks, but at least it's better than getting jacked for EVERYTHING.

Lynne said...

I have always thought that baseball should be the same as football in terms of salary caps. In football, every team is given an allowance, so to speak and they can spend it however they choose and that way football is fair and no team is stacked. With baseball, any team can spend as much as they want and that is why the Yankees and Red Sox have all the great players, even though it hasn't really been paying off for the Yankees woohoo.
It is crazy and the money should go to better use, ummmm maybe to feed the hungry??

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