Today I would like to explore the impact different state and city tax rates have on teams and players across the league. I have seen articles that broached this topic but usually limited it to “California has a 13.3% income tax and Florida has no income tax, so California teams have 13.3% less to work with than Florida teams”. While this is directionally accurate, it is a vast oversimplification. Below I’m going to go into more detail on two tax-related issues: the differing purchasing powers of each NFL team, and analyzing a few free agency moves from earlier this year to show how state taxes may impact a player’s decision.
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The free agency period is long over and we now have a few games worth of results to assess how recent signees are performing compared to their compensation. The question I’m trying to answer with this research is: “Is Team A getting the proper value out of its contract with Player B?”
I’ll revisit this topic throughout the season as we have more and more data to work with.