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.
Cardinals shortstop Aledmys Diaz was childhood friends with Marlins pitcher Jose Fernandez, so it was expected when Diaz took time away from the team on Monday to visit Fernandez’s family in Miami. They grew up on the same street in Cuba and played for the same youth baseball team and both would ultimately wind up playing Major League Baseball in the United States.
In the bottom of the fourth inning of Tuesday night’s game against the Reds, Diaz hit a 2-1 Robert Stephenson fastball out to left-center field for a no-doubt grand slam. Teammate Yadier Molina gave Diaz a tight hug as he crossed home plate.
Before Tuesday’s game, Diaz said that the best way to honor Fernandez was to play with his passion, as MLB.com’s Jenifer Langosch reports. Diaz said, “I only play for [Fernandez’s] family right now.”
Here’s the video.
The Red Sox would have clinched the AL East if one of two things happened on Tuesday night: the Red Sox themselves beat the Yankees, or the Orioles defeated the Blue Jays. Neither happened.
The Jays soundly took down the Orioles 5-1 behind six strong innings from Aaron Sanchez. Josh Donaldson went 2-for-2 with a two-run home run and a pair of walks and leadoff batter Ezequiel Carrera went 2-for-3 with a solo homer, an RBI single, a walk, and three runs scored.
Meanwhile, at Yankee Stadium, the Yankees outlasted the Red Sox for a 6-4 win, responding to both two-run innings the Sox had in the sixth and seventh with a run in the sixth and two in the seventh. Gary Sanchez hit his 20th homer of the season. Didi Gregorius and Tyler Austin also contributed dingers. Starter Luis Cessa pitched well, limiting the Sox to two runs over six innings on five hits and a walk with two strikeouts. Red Sox starter David Price struggled, yielding six runs in 6 1/3 innings. Yankees reliever Tyler Clippard got into trouble in the ninth inning but was able to wiggle out of trouble to finish out the game.
Once again, the Red Sox will be able to clinch the AL East on Wednesday with a win over the Yankees or a Blue Jays loss to the Orioles.