Super Bowl LX Athletes Confront Jock Tax, Slashing Bonus Earnings
Fanatics Betting & Gaming CEO Matt King discusses Superbowl bets, a commercial collaboration with Kendall Jenner and more on ‘The Claman Countdown.’
As the excitement builds for Super Bowl LX this Sunday, players are not only preparing for the big game but also bracing for a hefty tax bill. This is due to the game being held in California, a state known for its implementation of the “jock tax.”
Super Bowl LX will take place in Santa Clara, California, where the jock tax applies to professional athletes. This tax assesses players based on the number of days they spend playing or practicing in a jurisdiction, including those away from their home state. As a result, players participating in the Super Bowl will face significant tax implications.
According to the NFL’s collective bargaining agreement, players on both the winning and losing teams will receive bonuses. Winning team members will each take home $178,000, while those on the losing side will receive $103,000. However, Jeffrey Degner, a research fellow in economics at the American Institute for Economic Research, notes that these amounts are not as substantial once taxes are deducted.
FANATICS SPORTSBOOK SEES MAJOR SPIKE IN DOWNLOADS FROM KENDALL JENNER’S VIRAL SUPER BOWL AD CAMPAIGN
Super Bowl LX will air on Feb. 8 at the Levi’s Stadium in California. (Kirby Lee-Imagn Images via Reuters)
Degner explains that the actual take-home pay for players will be significantly lower after taxes are applied. For instance, winning players may only take home around $86,000, while those on the losing team could see about $49,800 after deductions.
Throughout the NFL season, players are subject to jock taxes in various jurisdictions. This means that any time they play or practice in an area with a jock tax, they will owe taxes on the income earned that day.
‘SUPER BOWL BREAKFAST’ RETURNS WITH FOCUS ON LEADERSHIP AND LEGACY AHEAD OF NFL SHOWCASE
Super Bowl LX will be held at Levi’s Stadium in Santa Clara, California, triggering the state’s jock tax. (Ishika Samant/Getty Images)
Both states and cities can impose jock taxes, adding complexity to players’ tax obligations. While these taxes are more common at the state level, they can still create significant challenges for athletes. Most jock taxes utilize a “duty day” standard, which has proven more effective than other frameworks that have faced legal challenges.
The duty day method calculates tax liability based on the number of days an athlete spends “on duty,” which includes playing, practicing, attending team meetings, and even fulfilling media obligations related to the Super Bowl.
Degner elaborates, stating, “The days on duty include days when you’re practicing or, in the case of the Super Bowl, even the media day counts as a day on duty. If that activity is happening in California, you’re subject to those tax rules.” This intricate tax situation can lead players to file taxes in multiple states, making it essential for them to work with knowledgeable financial and tax advisors to navigate these complexities effectively.
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Ultimately, the financial landscape for NFL players is fraught with challenges, particularly when it comes to understanding and managing their tax obligations across various jurisdictions.
Fanatics Betting & Gaming CEO Matt King discusses Superbowl bets, a commercial collaboration with Kendall Jenner and more on ‘The Claman Countdown.’
As the excitement builds for Super Bowl LX this Sunday, players are not only preparing for the big game but also bracing for a hefty tax bill. This is due to the game being held in California, a state known for its implementation of the “jock tax.”
Super Bowl LX will take place in Santa Clara, California, where the jock tax applies to professional athletes. This tax assesses players based on the number of days they spend playing or practicing in a jurisdiction, including those away from their home state. As a result, players participating in the Super Bowl will face significant tax implications.
According to the NFL’s collective bargaining agreement, players on both the winning and losing teams will receive bonuses. Winning team members will each take home $178,000, while those on the losing side will receive $103,000. However, Jeffrey Degner, a research fellow in economics at the American Institute for Economic Research, notes that these amounts are not as substantial once taxes are deducted.
FANATICS SPORTSBOOK SEES MAJOR SPIKE IN DOWNLOADS FROM KENDALL JENNER’S VIRAL SUPER BOWL AD CAMPAIGN
Super Bowl LX will air on Feb. 8 at the Levi’s Stadium in California. (Kirby Lee-Imagn Images via Reuters)
Degner explains that the actual take-home pay for players will be significantly lower after taxes are applied. For instance, winning players may only take home around $86,000, while those on the losing team could see about $49,800 after deductions.
Throughout the NFL season, players are subject to jock taxes in various jurisdictions. This means that any time they play or practice in an area with a jock tax, they will owe taxes on the income earned that day.
‘SUPER BOWL BREAKFAST’ RETURNS WITH FOCUS ON LEADERSHIP AND LEGACY AHEAD OF NFL SHOWCASE
Super Bowl LX will be held at Levi’s Stadium in Santa Clara, California, triggering the state’s jock tax. (Ishika Samant/Getty Images)
Both states and cities can impose jock taxes, adding complexity to players’ tax obligations. While these taxes are more common at the state level, they can still create significant challenges for athletes. Most jock taxes utilize a “duty day” standard, which has proven more effective than other frameworks that have faced legal challenges.
The duty day method calculates tax liability based on the number of days an athlete spends “on duty,” which includes playing, practicing, attending team meetings, and even fulfilling media obligations related to the Super Bowl.
Degner elaborates, stating, “The days on duty include days when you’re practicing or, in the case of the Super Bowl, even the media day counts as a day on duty. If that activity is happening in California, you’re subject to those tax rules.” This intricate tax situation can lead players to file taxes in multiple states, making it essential for them to work with knowledgeable financial and tax advisors to navigate these complexities effectively.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Ultimately, the financial landscape for NFL players is fraught with challenges, particularly when it comes to understanding and managing their tax obligations across various jurisdictions.
