While speculation swirls about how much Cliff Lee enjoyed his time in Texas and how much his wife disliked her time in New York, an overlooked factor in his free agent decision-making could be state income taxes.
Darren Rovell of CNBC wrote a very interesting article examining the differences in taxes Lee would pay depending on his new home. Texas does not have a state income tax, but it does have something called a “Jock Tax” that would involve Lee paying approximately $2.25 million if he signed a five-year, $120 million contract with the Rangers.
However, if Lee signed the same five-year, $120 million contract with the Yankees and moved to New York he’d pay between $11 million and $15 million in state income taxes depending on exactly where he lived.
In other words, assuming Lee can get in excess of $100 million from either team any offer the Rangers make will be worth about 10 percent more to him than any offer the Yankees make. Whether or not an “extra” $10 million would be enough to sway Lee one way or another is obviously unclear, but it does suggest that the Yankees will have to clearly top the Rangers’ offer to get him. Of course, we probably knew that already.
The Orioles announced, prior to Sunday’s game against the Yankees, that the club signed pitcher Tommy Hunter to a major league contract. In related roster moves, the club recalled pitcher Oliver Drake from Triple-A Norfolk and designated pitcher T.J. McFarland and outfielder Julio Borbon for assignment.
The Indians released Hunter on Thursday after he struggled in a rehab assignment with Triple-A Columbus. Hunter was recovering from a non-displaced fracture in his lower back. The right-hander put up a respectable 3.74 ERA with a 17/5 K/BB ratio in 21 2/3 innings for the Indians.
This will be Hunter’s second stint with the Orioles. The O’s had acquired him along with first baseman Chris Davis at the trade deadline from the Rangers in 2011 in the Koji Uehara trade.
The Orioles are only responsible for paying Hunter the prorated major league minimum.
Orioles DH Mark Trumbo drilled a two-run home run to left-center field off of reliever Ben Heller in the eighth inning of Sunday afternoon’s game against the Yankees. In doing so, he became the first player to reach the 40-homer plateau this season.
Trumbo finished 1-for-4 on the afternoon. Along with the 40 dingers, he’s hitting .257/.317/.541 with 96 RBI. He has already set a career-high in homers and is four RBI away from tying his career high in that regard.
Trumbo is eligible for free agency after the season. Needless to say, his performance in 2016 bodes well for his ability to secure a hefty contract.