Cliff Lee Family

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

34 Comments

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.

Josh Johnson retires from baseball

PEORIA, AZ - FEBRUARY 21: Josh Johnson #55 of the San Diego Padres poses during Picture Day on February 21, 2014 at the Peoria Sports Complex in Peoria, Arizona. (Photo by Mike McGinnis/Getty Images)
Mike McGinnis/Getty Images
1 Comment

Oft-injured pitcher Josh Johnson is retiring from baseball, ESPN’s Jerry Crasnick is reporting.

Johnson, 32, hasn’t pitched in the majors since 2013. The right-hander underwent his third Tommy John surgery in September 2015 but wasn’t able to bounce back.

Johnson spent most of his career with the Marlins, but also pitched for the Blue Jays in the big leagues, as well as the Padres in the minors. He retires with a career 3.40 ERA, 915 strikeouts across 998 innings in the majors, and two All-Star nominations. Johnson led the National League with a 2.30 ERA in 2010, finishing fifth in NL Cy Young Award balloting. One wonders what he could have accomplished if he was able to stay healthy.

Report: Angels close to a multi-year deal with Luis Valbuena

HOUSTON, TX - JULY 08:  Luis Valbuena #18 of the Houston Astros hits a three run walkoff home run in the ninth inning to defeat the Oakland Athletics 10-9 at Minute Maid Park on July 8, 2016 in Houston, Texas.  (Photo by Bob Levey/Getty Images)
Bob Levey/Getty Images
Leave a comment

The Angels are nearing a multi-year deal with free agent third baseman Luis Valbuena, Jeff Fletcher of the Orange County Register reports. It’s believed to be a two-year contract with a third-year option.

Valbuena, 31, hit .260/.357/.459 with 13 home runs and 40 RBI in 342 plate appearances in 2016. He missed most of the second half with a hamstring injury, for which he underwent surgery in late August.

Valbuena has played a majority of his career at third base, but also has extensive experience at second base and has racked up innings at first base and shortstop as well. He won’t play every day for the Angels, as Yunel Escobar lays claim to third base and C.J. Cron first base, but he will give them flexibility and a left-handed bat off the bench.