ESPN: Johnson to Yankees Looks Done

[DJeterFan]

It's so stupid because he doesn't need Beltran. He needed a couple good pitchers, period. He didn't even need the Unit but of course he has to if he can. Does he need more hitters? NO!

Steinbrenner is just ridiculous.

[Google]

 

[Bill]

According to ESPN, the Yanks have told Scott Boras that they will not be bidding on Beltran.

The Mets are the top bidder on the table, though if it were me, I would take the Houston offer for about 12MM less. Better team, and I could find a way to live on a 90MM contract.

[Mariner]

Originally Posted by Bill

According to ESPN, the Yanks have told Scott Boras that they will not be bidding on Beltran.

The Mets are the top bidder on the table, though if it were me, I would take the Houston offer for about 12MM less. Better team, and I could find a way to live on a 90MM contract.

Plus, Texas has no income taxes unlike New York where he'd be paying through the nose.

[DJeterFan]

The players pay the tax? I thought the owners do....?

[Bill]

Good point Mariner.

I just don't think adding a end of career Pedro to the Mets is going to make them a contender. Adding Beltran would help, but not if they don't move Piazza to first base.

[Mariner]

Originally Posted by DJeterFan

The players pay the tax? I thought the owners do....?

Nope. Players pay it. Some contracts may get bumped up to reduce the burden of the tax but the players pay.

[Bill]

Originally Posted by DJeterFan

The players pay the tax? I thought the owners do....?

Players pay payroll taxes just like you and I. If the owners tried to pay it, they would in fact be raising the pay, that in turn gets taxed.

Now where the players get screwed tax wise (if you can be screwed while making an average of 1MM a year) is that they can legally get double taxed when they visit away locations where the local government is paying for their ballpark by taxing the teams and players playing there.

[Mariner]

Originally Posted by Bill

Players pay payroll taxes just like you and I. If the owners tried to pay it, they would in fact be raising the pay, that in turn gets taxed.

Now where the players get screwed tax wise (if you can be screwed while making an average of 1MM a year) is that they can legally get double taxed when they visit away locations where the local government is paying for their ballpark by taxing the teams and players playing there.

Yep. California which is desperate for money goes after all the visiting players for a portion of their income.

[ref guy]

Johnson is my favorite pitcher and maybe player for all time. Seeing him win another World Series would be great.

[Bill]

A great article on the tax issues these guys face is here:

http://sports.espn.go.com/mlb/news/story?id=1959502

On the Yanks/Beltran issue, one possible explaination for the Yankees backing off is:

A number of reports put the Yankees out of the Beltran stakes. That might be because they have to worry about their own tax situation. If the team agrees to give Beltran a contract worth $16,680,000 in 2005, their total bill for Beltran's contract will actually be more than what they are paying Rodriguez, who is due $21 million ($4 million more is deferred). Beltran's contract will cost the Yankees $6.7 million more than the checks they make out to the free agent because they will be a third time offender of the luxury tax threshold. That means that Beltran's hypothetical $16.8 million contract will actually cost the Yankees $23.4 million.