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  • Super Bowl economics

    This is just staggering.



    Peyton Manning has the opportunity to pull a John Elway and ride off into the sunset as a Denver Bronco after winning his second ring, not that he wants to retire. His career will hinge upon an offseason exam on his surgically-repaired neck, according to ESPN ’s Chris Mortensen. Obviously, the most important implication of the exam will be Manning’s health. But whether his career continues will have an effect on how much tax New Jersey can collect from him for his appearance in the Super Bowl XLVIII.

    Should the Broncos beat the Seahawks, Manning—and the rest of his teammates—will earn $92,000. The loser’s share in the Super Bowl is $46,000. So why does Manning’s future beyond February 2 matter to New Jersey? It would seem logical that the Garden State would apply its tax rates on the $92,000 or $46,000 Manning earns for his week in East Rutherford. Unfortunately, we are dealing with tax laws, not logic.
    OK, that made me LOL, and I had to explain to the office what I was laughing at.

    [....]

    But should Manning continue his career into the 2014 season, New Jersey will collect an additional $45,000 from him by taxing income he has not even earned yet. Manning is due $15 million next season, which would push his 2014 earnings to $15,157,000 or $15,111,000, and bump him into Jersey’s highest 8.97% tax bracket. Luckily, his duty day ratio would go from 7/33 to 7/200, without regard to the Broncos’ game at MetLife MET -0.97% Stadium against the Jets next season.

    If Manning is able to play next season, his New Jersey income tax would be $46,989 on $92,000 for winning the Super Bowl, or 51.08%. If they lose and he is able to play in 2014, he will pay New Jersey $46,844 on his $46,000, which amounts to a 101.83% tax on his actual Super Bowl earnings in the state—and this does not even consider federal taxes!

    [....]

    At this point his only tax-planning tools would be to retire or demand a trade in the offseason. A trade would mean that he will earn his $15 million for a team other than the Broncos, thus saving him about $59,000 in New Jersey taxes. This is because duty days are calculated separately for each team on which he plays. Of course he would have to choose his destination wisely, because there are very few NFL destinations that enjoy lower taxes than Colorado.
    Unreal.
    It's been ten years since that lonely day I left you
    In the morning rain, smoking gun in hand
    Ten lonely years but how my heart, it still remembers
    Pray for me, momma, I'm a gypsy now

  • #2
    The poor, remember it's all about the poor.
    If it pays, it stays

    Comment


    • #3
      The math in this article makes a lot more sense. The fact is that Manning will earn a lot more than the bowl bonus for that day's playing time. He makes 15 million a year for 235 days spent on football related activity (a little under $64000/day), and 10 of those days are in New Jersey. The bowl bonus is a drop in the bucket.

      Raiola did the math. Manning is to be paid $15 million for the 2014-15 season. He received another $23,000 for winning the divisional playoffs, and $42,000 for the conference playoffs. In addition, each member of the winning team in the Super Bowl will get $92,000, while members of the losing team each receive $46,000.

      New Jersey bases its tax on so-called "duty days," which allocates income based on a ratio of total days spent in the state over the total days engaged in football-related activities. Manning will be in New Jersey for about eight days for the Super Bowl, with the team staying in Jersey City and practicing at the Jets training facility in Florham Park. Assuming he stays healthy next season, he will be back for another two days in East Rutherford, with Denver on the 2014 schedule for a game with the Jets.

      Those 10 days in New Jersey, divided by an estimated 235 total duty days, means that Manning’s accountant will have to allocate 4.26 percent of the quarterback’s salary to New Jersey — about $646,000 if he wins the Super Bowl, and $644,000 if he loses, according to Raiola. His New Jersey tax bill (with the top indiviidial tax rate here at 8.97 percent) will come to about $57,000 for his 10 days in the Garden State, whether he wins or loses.
      Enjoy.

      Comment


      • #4
        Originally posted by Norm dePlume View Post
        The math in this article makes a lot more sense. The fact is that Manning will earn a lot more than the bowl bonus for that day's playing time. He makes 15 million a year for 235 days spent on football related activity (a little under $64000/day), and 10 of those days are in New Jersey. The bowl bonus is a drop in the bucket.
        What about his endorsement money? What if he's in any superbowl commercials, shouldn't NJ get a piece of that pie too. Lets not leave anything on the table.
        If it pays, it stays

        Comment


        • #5
          MetLife Stadium is accessible via Exit 16W on the western spur of the New Jersey Turnpike and is also located adjacent to Route 3 and Route 120. Coach USA provides bus service between the stadium and the Port Authority Bus Terminal.

          The Meadowlands Rail Line operates on event days between the newly constructed Meadowlands Station and Hoboken Terminal via Secaucus Junction, where there is connecting service to Pennsylvania Station (New York City), Pennsylvania Station (Newark), and other New Jersey Transit rail operations. The line opened to the public on July 26, 2009.


          ~ Wiki


          I haven't looked into the constabulary or water delivery or fire or any other type service in the area.
          Colonel Vogel : What does the diary tell you that it doesn't tell us?

          Professor Henry Jones : It tells me, that goose-stepping morons like yourself should try *reading* books instead of *burning* them!

          Comment


          • #6
            If Obama spends a day in NJ to give a speech, does he get a tax bill from NJ for that?
            What about 10 days in NJ for vacation?
            Based on his 2012 returns he and Michelle earned about 1600 a day. Since he is always President, every day would be a "duty day" so does he get taxed based on 16,000 earned income while he was there?
            We are so fucked.

            Comment


            • #7
              Originally posted by gary m View Post
              If Obama spends a day in NJ to give a speech, does he get a tax bill from NJ for that?
              What about 10 days in NJ for vacation?
              Based on his 2012 returns he and Michelle earned about 1600 a day. Since he is always President, every day would be a "duty day" so does he get taxed based on 16,000 earned income while he was there?
              Let's push this further.
              Does the pilot and crew of AF1 get taxed if they land in NJ?
              Do all of the Secrete Service agents associated with 'pre visit' prep and feet on NJ ground during the visit get taxed by NJ?
              Do staff who accompany the Pres get taxed for their presence in NJ?

              inquiring minds...
              Robert Francis O'Rourke, Democrat, White guy, spent ~78 million to defeat, Ted Cruz, Republican immigrant Dark guy …
              and lost …
              But the Republicans are racist.

              Comment


              • #8
                If Bok looks up stats about NJ while at work using a work computer should he be taxed?
                If it pays, it stays

                Comment


                • #9
                  I'd rather light a candle than curse the darkness, so here's the good news for Mr. Manning:

                  In certain situations a taxpayer can earn income while residing in Colorado, but the income is taxable in another
                  state. Residency and income tax rules could require the income be included on the Colorado income tax return. To
                  prevent double taxation of the income, Colorado residents can claim a credit for the taxes paid to the other state.
                  [§39-22-108, C.R.S.]
                  Enjoy.

                  Comment


                  • #10
                    Originally posted by Adam View Post
                    This is just staggering.



                    OK, that made me LOL, and I had to explain to the office what I was laughing at.



                    Unreal.
                    Why do amateurs get attention so often?

                    This story is complete bullshit.
                    "Faith is nothing but a firm assent of the mind : which, if it be regulated, as is our duty, cannot be afforded to anything but upon good reason, and so cannot be opposite to it."
                    -John Locke

                    "It's all been melded together into one giant, authoritarian, leftist scream."
                    -Newman

                    Comment


                    • #11
                      Originally posted by scott View Post
                      Why do amateurs get attention so often?

                      This story is complete bullshit.



                      Are you saying that what this guy says is not correct?
                      It's been ten years since that lonely day I left you
                      In the morning rain, smoking gun in hand
                      Ten lonely years but how my heart, it still remembers
                      Pray for me, momma, I'm a gypsy now

                      Comment


                      • #12
                        Originally posted by Adam View Post



                        Are you saying that what this guy says is not correct?
                        Yes, that's what I'm saying.

                        Manning is not being taxed by New Jersey solely on Super Bowl gameday earnings.
                        "Faith is nothing but a firm assent of the mind : which, if it be regulated, as is our duty, cannot be afforded to anything but upon good reason, and so cannot be opposite to it."
                        -John Locke

                        "It's all been melded together into one giant, authoritarian, leftist scream."
                        -Newman

                        Comment


                        • #13
                          Originally posted by scott View Post
                          Yes, that's what I'm saying.

                          Manning is not being taxed by New Jersey solely on Super Bowl gameday earnings.
                          I rather thought that was the whole point to begin with: beyond just what happens this Sunday, since it's almost a certainty that if he's healthy, he'll play at the Meadowlands again next season, this will have an effect upon the taxes that he owes New Jersey. Hence the point at the end of the article: "At this point his only tax-planning tools would be to retire or demand a trade in the offseason." IOW, he has a crazy tax-planning picture in front of him (though I doubt he really cares about the tax bill).
                          It's been ten years since that lonely day I left you
                          In the morning rain, smoking gun in hand
                          Ten lonely years but how my heart, it still remembers
                          Pray for me, momma, I'm a gypsy now

                          Comment


                          • #14
                            Originally posted by Adam View Post
                            I rather thought that was the whole point to begin with: beyond just what happens this Sunday, since it's almost a certainty that if he's healthy, he'll play at the Meadowlands again next season, this will have an effect upon the taxes that he owes New Jersey. Hence the point at the end of the article: "At this point his only tax-planning tools would be to retire or demand a trade in the offseason." IOW, he has a crazy tax-planning picture in front of him (though I doubt he really cares about the tax bill).
                            No, the point was the potential of him being taxed 101.83% and that is false.
                            "Faith is nothing but a firm assent of the mind : which, if it be regulated, as is our duty, cannot be afforded to anything but upon good reason, and so cannot be opposite to it."
                            -John Locke

                            "It's all been melded together into one giant, authoritarian, leftist scream."
                            -Newman

                            Comment

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