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.
The Cleveland Indians just announced that they’ve acquired catcher Chris Gimenez from the Texas Rangers in exchange for cash considerations.
Gimenez knows his way to Progressive Field. Indeed, this will be his third stint with the Indians organization. He was their 19th round pick in the 2004 draft, made his big league debut with the club in 2009 and stayed through the 2010 season. He came back in 2014 for eight games, now he’s back again. He has yet to play in 2016 due to a ankle issue. He as doing minor league rehab before being DFA’d by the Rangers yesterday.
Come back to Cleveland, Chris. You always will have a home in Cleveland.
Last year the Dodgers suspended infielder Erisbel Arruebarrena for the remainder of the season“for repeated failures to comply with his contract.” Arreubarrena appealed his suspension to Major League Baseball and it was reduced to thirty days, though that was said to be a settlement between Arruebarrena and the Dodgers as opposed to a full adjudication.
Here we go again: Gabe Kapler, the Dodgers Director of Player Development, just announced that the Dodgers have suspended Arruebarrena for the rest of 2016 “for repeated failure to comply with the terms of his contract.” No further specifics were given.
Arruebarrena was signed out of Cuba to to a five-year, $25 million deal back in 2013. He played in 22 games in the bigs in 2014, hitting .195. He was dropped from the 40-man roster after that season, however, and after his suspension last year managed to only play in 53 games across three levels. He hit better, but none of his action was above Double-A and he was 25 at the time. He’s played 17 games at Double-A this year and isn’t hitting.
What he was or was not doing with respect to his contract is unclear at the moment, but this isn’t exactly the kind of thing that happens on a daily basis, especially with dudes under contract for $25 million, so we’ll probably hear more eventually.
NEW YORK (AP) Braves right fielder Nick Markakis has left the team because of a family emergency.
Manager Fredi Gonzalez said before Wednesday’s game against the Mets that Markakis had headed home to Maryland. The veteran is expected to be back in time for Friday’s home game against Arizona. Atlanta is off Thursday.
Chase d’Arnaud is starting in right field and Mallex Smith is leading off Wednesday.
Markakis is hitting .281 with no home runs and 20 RBIs.
T.J. Quinn of ESPN’s Outside the Lines reports that another major leaguer — or possibly several of them — will soon be suspended for PEDs. He says that, as was the case with Chris Colabello and others recently, the drug will be Turinabol, which is an old school anabolic steroid. Quinn says that improved testing procedures, which he details in the article, are a likely reason for the spike in Turinabol positives, though it’s also possible that there is a tainted supplement being taken, though he deems that speculative.
What isn’t mentioned is . . . how an ESPN reporter knows a positive test is coming when the drug testing program is supposed to be confidential. Someone with the league or the union must be telling him, right? That’s sort of messed up, no? Will MLB investigate who is leaking such things?
Whatever the case, we’ll soon have a new police blotter item, it seems.