Paul george's last contract didn't expire until the summer of 2022. His annual salary is $33 million this season and $34.5 million next season. Because paul george couldn't reach a deal at the end of this season, many media added up his contract last year, saying it was $225 million for five years. Actually, there is no problem.
Many fans know that the contract amount of a player is not the final salary. First, they need to pay federal taxes, followed by state taxes, and then various other fees. Every state in the United States has a different tax system. Lucky players can get about 55% of after-tax salary, and unlucky players may not even get 40%. Today, let's figure out how much paul george can get after tax for this big four-year contract of $6543.8+900 million.
Let's talk about the expenses that paul george needs to pay first! NBA players are super-high income groups, and they need to pay 39.6% federal tax, which is uniform, no matter which state you play in. Los Angeles Clippers is located in California, and the state tax in California is relatively high, as high as 13.3%.
Here is an interesting topic. Players are eager to play in a big city like Los Angeles, but at the same time they have to bear the high state tax of this big city. In fact, the tax gap between American States is not small. The lowest state tax is Alaska, only 5.7%, but unfortunately there is no NBA team in this state. Among the cities where NBA teams are located, Utah Jazz has the lowest state tax, with a value of 8.39%. Don't underestimate the difference between these percentages. We can calculate an account. Take Paul George's salary of $33 million this season for example. The state tax he needs to pay when playing in Los Angeles is $4.389 million, while if he goes to Salt Lake City, it is $2.7687 million, which is $654.38+$6203 million a year!
Only $65,438+6,000 a year. Superstars like Pozmann Malone and Stokes, who have played basketball in Jazz for more than 20 years, should be able to save a year's salary after calculating their entire careers.
Okay, let's get down to business. Besides federal and state taxes, what other fees do NBA players have to pay? The first is the broker's commission, which is 4% of the contract amount. Now the industry of players' agents is getting more and more popular. Many times, players talk to their bosses themselves, but they can't get such a high salary and need agents. James' good friend Ricky Paul is the representative. Moreover, some top stars will sign top-paid contracts no matter where they go, so there is no need to bother their agents, but some things are still inconvenient for them to tell the team face to face, so they have the practice of letting their families act as agents. For example, Harden's agent is his mother, and Leonard once hired his uncle as an agent.
Paul george's agent is Alan Mintz, one of the famous NBA agents. He has more than 20 NBA players, so Aaron Mintz's commission is also implemented according to the standard of 4%. Paul george must pay the money.
Let's talk about the last item. Players need to pay 8% of the trust fund every year during the game. This fee is similar to old-age insurance. Many NBA players will face bankruptcy after retirement, so the league will collect some money when they earn more money and return it monthly after a certain age. Of course, when the player actually receives the money, he will definitely pay more than at the beginning. This money is calculated according to after-tax salary.
It is clear now that we can try to calculate paul george's salary. It should be noted in advance that the federal tax and state tax are paid according to the contract amount, so is the broker's commission, and the trust fund is the calculated player's after-tax salary, but it does not include the broker's commission, because that is the player's own expenses. This description may be a bit vague, just calculate it!
Paul george's contract amount is $65.438+$90 million, so he has to pay $75.24 million in federal tax and $25.27 million in state tax every four years. George needs to pay a one-time commission of $7.6 million to agent Aaron Mintz. The calculation of trust funds is quite troublesome. This is only charged according to the after-tax salary, and the commission cannot be counted. Paul george's after-tax salary for four years is $89.49 million, so he needs to pay a trust fund of $7159,200 every four years, that is, a pension.
The results came out! Four years of $65.438+0.9 billion, minus the federal tax of $75.24 million, minus the state tax of $25.27 million, minus the brokerage commission of $7.6 million, minus the trust fund of $76.5438+0.592 million, then paul george's four-year salary is $74.7308 million, with an average annual salary of $6.5438+0.86827 million.
Is it a bit exaggerated to say that 65.438+0.9 billion yuan finally got more than 74 million yuan? The excitement evaporated by more than one billion!
Some fans may ask: what about those players who can't get the top salary? For example, Brother Alphabet earned $50,000 a year in the Lakers last season. During the James Knight period, a teammate named Deng Tai-Jones joined the team with a salary of $9,000 before the start of the playoffs, without the word "10,000" behind him. Do these players still have money to eat after paying taxes? Fans can rest assured that the federal tax is paid according to the income level. The income levels of Brother Xin and Deng Tai-Jones belong to low-income groups, and their federal taxes will naturally be much less. But there is little difference between state taxes and trust funds. As for the agent's commission, maybe no agent will fight for these players?