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 Rays have acquired shortstop Adeiny Hechavarria from the Marlins, Clark Spencer of the Miami Herald reports. The Marlins will receive minor league outfielder Braxton Lee and pitcher Ethan Clark. The Rays are expected to assume the remainder of Hechavarria’s $4.35 million salary for the 2017 season.
Hechavarria, 28, has only played in 20 games this season due to an oblique injury. He has mustered a meager .277/.288/.385 triple-slash line with four extra-base hits and six RBI across 67 plate appearances. He still plays decent defense, though, so that may be enough for him to take the everyday shortstop job in Tampa.
Lee, 23, was selected by the Rays in the 12th round of the 2014 draft. This season with Double-A Montgomery, his second stint there, Lee hit .318/.387/.391 over 296 PA.
Clark, 22, was taken in the 15th round of the 2015 draft by the Rays. In his first stint at Single-A in Bowling Green, Clark has a 3.11 ERA with a 50/18 K/BB ratio in 55 innings of work.
Tom Boswell of the Washington Post does frequent Q&As with readers and today he had quite the A to one of their Qs.
The question was about the Nats’ bullpen, which is obviously a glaring weakness on an otherwise excellent team. Following a long answer talking about the approach to bullpen construction, he dropped this:
On Friday, yet ANOTHER National simply walked up to me and said, “When the hell are they going to get this done? What are they waiting for? Waiting is just doing more damage.”
He didn’t even have to say what subject he was talking about or whom “they” were but it’s the bullpen and the Lerners.
A team has a problem when all a reporter has to do is say, “How’s it going?” and an established part of the team blasts the owners for not understanding what’s happening in their own dugout/clubhouse.
The Nats have a bit of a history venting to the Post’s reporters in ways a lot of players don’t vent, but that’s usually when things are going bad overall. These days, things are going pretty good for the Nats, the bum bullpen notwithstanding. I guess one weakness on an otherwise good team is annoying as hell.
But I guess now that they’re getting K-Rod, all of that will end.