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.
At the end of January, the Nationals signed relievers Joe Nathan and Matt Albers. Today the Nationals have released Joe Nathan and Matt Albers.
Nathan, 42, pitched in just ten games last year, totaling only six and a third innings, between the Giants and the Cubs. He missed the entire 2015 season except for one third of an inning on Opening Day. Albers pitched in 58 games for the White Sox last year, posting an unsightly 6.31 ERA He pitched wonderfully in 30 games in 2015 however.
This spring Nathan and Albers pitched in more games than any other Nats relievers. Twelve for Nathan, ten for Albers. And they pitched well, with Nathan giving up five earned runs and Albers none. Apparently, however, there just isn’t room on the roster for those two.
This could be the end of the line for Nathan, a 16-year veteran with 377 career saves.
The substance of the report is not shocking. Francisco Lindor is one of baseball’s brightest young stars and the Cleveland Indians would, no doubt, wish to lock him up for an extended period of time. The surprising part is the guy who reported that, yes, the Indians are working to get Lindor a seven-year extension.
That guy: six-year-old Brody Chernoff, son of Indians general manager Mike Chernoff. Brody was invited into the team’s broadcast booth during the ninth inning of their game against the Chicago White Sox. Indians announcer Tom Hamilton asked, no doubt jokingly, if his working on anything interesting. Brody:
“He’s trying to get, um, Lindor to play for seven more years,”
Again, not shocking. It would’ve been way worse if Brody had said “Dad’s working on a three-way deal that’ll send Naquin to an NL team in order to affect a three-way trade that’ll land us Verlander without having to deal directly with a divisional rival.” But I imagine Dad still would’ve preferred he not mention that.