State taxes could play a factor in Cliff Lee choosing between Rangers and Yankees


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.

David Phelps to undergo Tommy John surgery

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Pitcher David Phelps has a torn UCL and will undergo Tommy John surgery, ending his 2018 season, the Mariners announced on Wednesday. Phelps was making brief one-inning stints in the Cactus League as he worked his way back from a procedure to remove a bone spur from his elbow last September. He said he felt the ligament tear on his final pitch against the Angels in his March 17 appearance.

Phelps, 31, was expected to set up for closer Edwin Diaz. The right-hander, between the Marlins and Mariners last season, posted a 3.40 ERA with a 62/26 K/BB ratio in 55 2/3 innings. He and the Mariners avoided arbitration in January, agreeing on a $5.55 million salary for the 2018 campaign. Phelps will become eligible to become a free agent at the end of the season.

As the Mariners noted in their statement, the expected recovery period for Tommy John surgery is 12-15 months, so this very likely cuts into Phelps’ 2019 season as well.