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View Full Version : Howard would make more money with the Rockets?



clutchfan
05-24-2013, 04:56 PM
http://www.forbes.com/sites/anthonynitti/2013/05/23/could-state-taxes-cause-dwight-howard-to-flee-l-a-for-houston/



By signing with the Houston Rockets, Howard could save approximately $15.1 million ($15,700,000 less $600,000) in state income taxes on his next contract.





That’s not to say, however, that Howard would walk away with 13.3% more if he signs with Houston then the Lakers. In the U.S., the taxation of professional athletes is based on “duty days;” basically, the income you earn is apportioned to each state based on the number of days you compete or train within the state, and is then taxed in that state according to its tax rates. So even if an athlete resides in a state with no income tax, some of his income will be allocated to states with an income tax and taxed accordingly. But as you’ll see below, the savings from calling a state like Texas your home can still be substantial.


hmm :rolleyes:

kdspurman
05-24-2013, 04:57 PM
I saw that too, he would make a little more after taxes with either Houston or Dallas.

clutchfan
05-24-2013, 05:30 PM
.

Hawkeye15
05-24-2013, 05:31 PM
factor in standard of living, housing prices, cost to hire labor, fuel, etc, and Houston is a no brainer for all sorts of reasons.

Marques24kobe
05-24-2013, 05:43 PM
Still would make more with Lakers with the extra year. Misleading thread. Not to mention endorsements.

Lakers + Giants
05-24-2013, 05:45 PM
factor in standard of living, housing prices, cost to hire labor, fuel, etc, and Houston is a no brainer for all sorts of reasons.

Factor in current team and it makes it even worse for us. Houston is easily our biggest threat for dwight.

Hawkeye15
05-24-2013, 05:48 PM
Still would make more with Lakers with the extra year. Misleading thread. Not to mention endorsements.

Not really. Can't remember who, but they posted an economical breakdown, and its a wash, even with the 5th year.

jerellh528
05-24-2013, 05:58 PM
Well, if he wants to go to a franchise with the heavy burden on needing to produce championships he will join the Lakers. If he wants to go to a franchise thats championship was signing lin and harden, then he will choose the rockets. Either way, he will still be the best center in the league and benefit either team greatly. Monetarily, its pretty much a wash since LA's high taxes and prices compared to texas. He would get more endorsements and face time in LA though, so that should compensate and make LA more of a "player desirable" experience.

BenFrank
05-24-2013, 06:10 PM
Still would make more with Lakers with the extra year. Misleading thread. Not to mention endorsements.

What new endorsements have Howard gotten this past year in L.A.? Thought u might find this interesting

http://www.forbes.com/sites/prishe/2013/02/12/dwight-howards-dwindling-popularity-may-diminish-future-endorsement-opportunities/


- In January 2012, Mr. Howard’s Q score was 20…a good number when one considers that the average for athletes is about 16;

- By September 2012, his Q score fell to 15;

- As of January 2013, his Q score further dropped to 13.

A fairly significant drop when one considers that (1) he has not been involved in any social indiscretions (e.g. no arrest, no sexual misconduct) and (2) often times Q scores increase when a player relocates from a mid-sized (Orlando) to a large-sized (Los Angeles) market.

mngopher35
05-24-2013, 06:12 PM
Houston seems to make a lot of sense. I predicted for a while that he would stay with the lakers but I'm not so sure anymore. Basketball wise I think the rockets look better because of harden and parsons (plus a lot of young talent that could be kept or traded).

jerellh528
05-24-2013, 06:21 PM
What new endorsements have Howard gotten this past year in L.A.? Thought u might find this interesting

http://www.forbes.com/sites/prishe/2013/02/12/dwight-howards-dwindling-popularity-may-diminish-future-endorsement-opportunities/

too much **** goin on this year to worry about that crap.

KobeOwnSU
05-24-2013, 06:27 PM
As a Laker fan, I hope he signs with Houston. Then he will be there problem. I don't want him back on the Lakers.

BenFrank
05-24-2013, 06:36 PM
too much **** goin on this year to worry about that crap.

Between Him, Kobe, and MD.. I don't really see how it's gonna get better. There a chance, but it's slight

Jets012
05-24-2013, 06:38 PM
I hope he does sign with Houston. Better situation for him to restart his career and we won't have to hear Lakers fans for another 5 years! Everybody wins! Except for Laker fans

jayjay33
05-24-2013, 08:04 PM
people keep saying 4 years vs 5. But won't he have an opt out after 3 either way?

RLundi
05-24-2013, 08:10 PM
Sign with Houston or Atlanta.

Marques24kobe
05-24-2013, 08:59 PM
Not really. Can't remember who, but they posted an economical breakdown, and its a wash, even with the 5th year.

I can't remember where but that means he saves $30 million in not paying income tax. I highly doubt that. We have this discussion every year and it always gets blown out of proportion. If athletes could save 10's of millions of dollars by living in Florida or Texas, then why aren't all players lining up to play for them. Think about it.

bholly
05-24-2013, 09:36 PM
I can't remember where but that means he saves $30 million in not paying income tax. I highly doubt that. We have this discussion every year and it always gets blown out of proportion. If athletes could save 10's of millions of dollars by living in Florida or Texas, then why aren't all players lining up to play for them. Think about it.

The point is that after the 4th year in Houston it's not like he'd have to just play for free the next year - at 31 he could well be in line for another max, in which case we're talking about the difference of maybe a couple of million that year. By that point waiting an extra year for his next contract could mean signing it under a new CBA, at which point it could even be much better (or much worse) to have one less year - there's a huge amount of uncertainty.
The extra year gives him more security - if he regresses a huge amount or has a career ending injury then it could be pretty valuable - but nobody knows how heavily he weighs that possibility.

In short, just saying he gets $30m more for signing with LAL, and not qualifying it in any way, is pretty wrong.

JordansBulls
05-24-2013, 11:30 PM
Come to Houston Dwight.

LakersIn5
05-24-2013, 11:37 PM
go to houston already dwight so you will forever be bashed for leaving the lakers after 1 year and not minding the lakers legacy.

shep33
05-24-2013, 11:41 PM
Well the 5th year is all about security. In 4 years D12 will be 31, a lot of mileage on that body, plus the back surgery, the shoulder. He may never get a max contract again.

But Houston is the best place to sign if he leaves LA, without question.