But the state’s high income tax rates also are a factor when individual players consider accepting free-agent contracts with California teams.

When all-pro tackle Ndamukong Suh decided to leave the Detroit Lions, he considered an offer from the Oakland Raiders. However, he ended up accepting an offer from the Miami Dolphins for $60 million.

On the sports website ESPN, Chris Mortensen pointed out:

“Florida doesn’t have any state income tax, so in order for the Lions and the Raiders to match the after tax net earnings on a $60 million guaranteed, the Lions would have had to pay Suh approximately $64.9 million and the Raiders would have had to pay $70.1 million, said sports tax specialist Robert Raiola, senior manager at the accounting firm O’Connor Davis in New York.” 

The California Taxpayers Association published a more detailed examination of California’s tax rate on NFL player contracts:

“All teams in the National Football League operate under a league-imposed salary cap, but because the cap ($143,280,000 for 2015) is not adjusted for states’ differing income tax burdens, California teams are at a disadvantage because the Golden State has the highest income tax rate in the nation.”

‘Advantage’

The CTA quoted Jim Pagels of Forbes, who wrote:

“Teams in states with low or no income tax have a huge advantage in that they can offer vastly more money to prospective free agents. The difference between teams in Washington, Texas, Tennessee and Florida, where no state income tax is levied, versus those in California, which takes a whopping 13.3 percent, is staggering – $19.1 million. To put that difference in perspective, $19.1 million after taxes is more than any player in the NFL has ever earned per year, meaning teams in taxless states can essentially afford a California roster plus the most expensive player in NFL history on top of that each and every year.”

The state’s income tax may even cause sporting events not to take place in California.

While boxers Manny Pacquiao and Floyd Mayweather finally have decided to duke it out this coming May in Las Vegas, there was serious talk of a Pacquiao-Mayweather fight back in 2009. At that time, the Los Angeles Staples Center arena offered a $20 million site fee to host the event.

As I wrote in my Fox and Hounds column at the time, Pacquiao’s business advisor threw cold water on the offer:

“Noting that Paciquino would have to pay millions in taxes to California under the current 10.55 percent top tax rate, the advisor said the fighter didn’t want to fight in California when there were alternatives in no income tax states like Texas and Nevada.”

Now, after the passage of the $7 billion tax increase from Proposition 30 in 2013, the California’s top tax rate is up to 13.3 percent.

But instead of the Raiders and their symbol of a pirate and swords, Suh signed with Miami and their symbol of a green dolphin. The likely reason, according to ESPN: The Dolphins were more competitive because his after-taxes pay will be higher:

A league source told ESPN.com that Detroit’s offer to Suh was $17 million per year with $58 million guaranteed — a deal that would have still made Suh the highest-paid defensive player in the NFL.

Florida doesn’t have any state income tax, so in order for the Lions and the Raiders to match the after tax net earnings on a $60 million guarantee, the Lions would have had to pay Suh approximately $64.9 million and the Raiders would have had to pay $70.1 million, said sports tax specialist Robert Raiola, senior manager at the accounting firm O’Connor Davies in New York.

Suh has to pay federal income tax as well as some so-called “Jock Taxes” for the days he works in a city while playing. Suh’s net earnings on the assumption of $60 million guaranteed will come out to about $34.7 million, Raiola said.

J.J. Watt of the Houston Texans set the market in 2014 when he signed a six-year, $100 million contract with $51.8 million in guaranteed money.

Texas also doesn’t have a state income tax, benefiting Watt by staying there.

Breitbart also reported:

Both the Oakland Raiders and Lions pursued the defensive tackle. But Suh opted to sign with the Miami Dolphins. Whereas California would have grabbed 13.3 percent of Suh’s paycheck, and Michigan a more modest 4.25 percent, the Sunshine State leaves Suh’s money alone. Florida, like NFL host states Washington and Texas, levies no income tax.

It should be noted he won’t get all that money. Top athletes have to pay a large chunk to agents, accountants, investment advisers, lawyers and sometimes publicists. That’s why, if they’re not careful, even millionaires can go broke quickly when their playing days are over. So the money he saves by playing in a state without an income tax could pay off big in the long run.

Suh still will have to pay the “jock” tax whenever he plays in California against Oakland, San Francisco or San Diego — or whatever team or teams might end up in Los Angeles.

California has won major sports championships in recent years, including the Los Angeles Kings in hockey last year, the Los Angeles Lakers in basketball in 2010 and the San Francisco Giants in baseball also last year.

But the state’s last Super Bowl victory was the San Francisco 49ers way back in 1995.