Jayson Tatum signing his supermax contract extension was a no-brainer, really. The man deserves every penny the Boston Celtics have to offer, yes? Well, the Cs and the larger audience might agree. However, factors like taxes still manage to cut the NBA’s largest contract and turn it into not-so-lucrative.
As reported by Shams Charania and Jared Weiss of The Athletic, Tatum can sign the deal on July 6 and when done, is expected to replace his $37 million player option for the 2025-26 season. The contract, a five-year $314 million, will ensure that Jayson stays in ‘Beantown’ through to the 2029-30 season.
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Circling back to what we said earlier, well, you’d be shocked at the remaining annual amount that the 26-year-old can actually take home. A mere $25.2 million from the $62.8 million is what Jayson receives after tax deduction. Andrew Petcash of ‘Profluence Cap’ wasted no time sharing the numbers on X.
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As per his breakdown, $23.2 million goes straight to Federal tax, $4.7 million as the jock tax, then comes $8.1 million in Escrow and agent commission, and finally $1.4 million in FICA/Medicare. It leaves the guy with $25.2 million in net income.
Jayson Tatum’s income after taxes 😲
$62.8M: Salary
–
$23.2M: Federal Tax
$4.7M: Jock Tax
$8.1M: Escrow + Agent
$1.4M: FICA/Medicare
=
$25.2M: Net Income pic.twitter.com/48mGdNVLHY— Andrew Petcash (@AndrewPetcash) July 1, 2024
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(This story is still developing)