<![CDATA[MBAF - Sports & Entertainment]]> <![CDATA[Sports and Entertainment Advisory - For the Love of the Game AND the Money, LeBron James could be a double winner]]>
Kashyap Bakhai

As LeBron James juggles all his options among the Knicks and the Nets, the Bulls and the Cavaliers, the Heat comes up as a slam dunk.

Clearly, the attraction of Wade-Bosh-LeBron on the same team is very powerful.

But Miami can beat out New York, New Jersey, Cleveland and Chicago hands down on…taxes.

Maybe, not the most exciting but the fact of the matter is that tax levels on all these other cities and states are significantly higher than in Miami, Florida. Significant enough to represent from $13 million to $4 million dollars over a five year period. Not peanuts.

For the sake of illustration, assuming $20 million salary contract and $20 million endorsement revenue each for five years, by moving to Miami, LeBron could theoretically save $13 million over New York, $11 million over New Jersey, $8 million over Cleveland and $4 million over Chicago on just salary and endorsements alone. There could be other sources of revenues such as interest, dividends and capital gains from investments. CAVEAT: Actual savings would depend upon actual salary, endorsements, and other financial and tax considerations.

On five year earnings of $200 million, the take home (net of Federal & State taxes) would be:


 

So, LeBron James could be looking at being a really big winner, for love of the Game AND the Money.

 

]]>