Aroldis Chapman about to incur multi-million dollar tax liability

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Sharp observation by ESPN’s Jorge Arangure, Jr.:  If Aroldis Chapman doesn’t sign a deal and receive his bonus by Thursday at midnight, he’s going to get a multi-million dollar tax bill that he could have totally avoided.

Why? Because, Arangure reports, signing bonuses that are received outside the U.S., by a non-U.S.
resident, and in a tax year in which the person did not work in the
U.S., are not subject to U.S. taxation.  Chapman currently lives in tax-free Andorra. He hasn’t pitched in the U.S. Thus, any money he makes in 2009 can’t be taxed in the U.S. He will, however, work in the U.S. in 2010, so he will be subject to U.S. taxation on all earnings after the first of the year regardless of where he lives.   If, as expected, he gets tens of millions of dollars, that’s going to be a several million-dollar tax bill.

Arangure’s source on this, agent Joe Kehoskie, says “As far as I’m aware, neither the Hendricks brothers nor Rodney
Fernandez (who represent Chapman) have ever completed a contract for a
foreign free agent, so I bet this issue flew right under their radar.”

Maybe. But it may simply be that the market just hasn’t developed for Chapman like everyone thinks it eventually will, and that rushing to save a couple million in taxes now could cost him several more million in the value of the contract he ultimately signs.

Still, somewhere, the agent that Chapman fired to sign with the Hendricks brothers is smiling. And amending his lawsuit to claim that if he were still representing Chapman, he would have imposed a December 31st deadline to all interested clubs in an effort to avoid the bill.

Shelby Miller has a tear in his UCL, considering Tommy John surgery

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Nick Piecoro of the Arizona Republic reports that Diamondbacks pitcher Shelby Miller has a tear in his ulnar collateral ligament and is considering undergoing Tommy John surgery. Surgery would end Miller’s 2017 season and would cut into a significant portion — if not all — of his 2018 season as well.

Miller sent his MRI results to Dr. Neal ElAttrache and Dr. James Andrews for second and third opinions, respectively. He could choose to rehab his elbow rather than undergo surgery, but that comes with its own set of positives and negatives.

Miller lasted only four-plus innings in his most recent start on Sunday and carries a 4.09 ERA on the season, his second with the Diamondbacks. His time in Arizona has not gone well.

The Mets are a mess

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The Mets lost again on Thursday afternoon, suffering a 7-5 defeat at the hands of the Braves. It’s their sixth consecutive loss and the club is now in last place in the NL East. Not exactly the start the Mets envisioned.

Matt Harvey got the start, but lasted only 4 1/3 innings. He gave up six runs on five hits and five walks with only one strikeout. After the game, Harvey said he was tight and that he threw yesterday expecting to start on Friday instead, per Matt Ehalt of The Record. Sounds like no one communicated to Harvey that he’d be starting this afternoon until it was too late for him to properly prepare.

Harvey started because Noah Syndergaard was scratched due to a “tired arm.” Syndergaard blew reporters off after the game, according to Mike Puma of the New York Post. Puma then added that Syndergaard ripped Mets P.R. guy Jay Horwitz for letting reporters approach him.

By the way, the Mets also lost outfielder Yoenis Cespedes to a hamstring injury. Not much else can go wrong in Queens.