A Lakers contract. One season. Los Angeles.
That is the number on TV. Watch where it goes.
01
Federal income tax
($10,931,880)
Everything over $640,600 is taxed at 37%. On a $30 million season, almost all of it is in that top bracket. This one line is bigger than every other cost combined.
02
Medicare and Social Security
($714,639)
Social Security stops after $184,500. Medicare never stops: 1.45% on every dollar, plus 0.9% more on everything over $200,000.
03
California state tax
($3,624,565)
California's top rate is 13.3%. The same contract in Miami or Dallas would put this money back in his pocket, because Florida and Texas do not tax wages at all.
04
The jock tax
($566,412)
41 road games means paying income tax in almost every state he visits, plus Canada in Toronto. Many players file 10 to 20 state returns a year.
05
The agent
($1,200,000)
The NBA caps agents at 4%. It comes out of the gross, and for team salary it is not deductible on a federal return. Many agents will take less. Ask.
06
Managers, CPA and lawyer
($325,000)
A 1% advisor fee and the cost of filing all those state returns. Stack a few more percentage fees and this line doubles without anyone noticing.
The real number
And that is before a house, a car, or helping anyone. Before NBA escrow holds back another 10% of every check. Before the career ends, which for most players comes sooner than they plan for.
The tools
Free, no sign-up, and nothing you type leaves your phone. Built on 2026 tax law and every league's rules.
Before you sign
The contract is the headline.What you keep is the legacy.
Sit down with the people you trust, run the real numbers together, and decide what this money is for before anyone else decides for you.
Bring your family inThe library
The Contract Number Is Not Your Money
8 min read
The Jock Tax, Explained in Plain English
8 min read
Agent Fees, and When a Flat-Fee Lawyer Makes Sense
8 min read
Financial Advisors and Business Managers: Who to Trust and the Red Flags
8 min read
Friends, Family, and Saying No Without Losing Them
8 min read
Buying Mom a House: Give It or Keep It?
8 min read
Do Athletes Need an LLC? The Honest Answer
8 min read
Starting a Foundation vs. a Donor-Advised Fund
8 min read
The NIL Money Guide for Athletes and Families
9 min read
A Parent's Guide to Protecting Your Athlete
8 min read
Your First 90 Days After Signing
8 min read
How Long Will the Money Last?
8 min read
Life After the League
8 min read
Case files
Cautionary
Antoine Walker (NBA)
The three-time All-Star filed Chapter 7 in 2010 listing about $12.7M in liabilities and $4.3M in assets after failed real estate ventures, heavy spending, gambling and supporting a large circle. He sold his 2006 championship ring. He was discharged in 2012 and now speaks to young players about money.
Cautionary
Warren Sapp (NFL)
Sapp filed in Fort Lauderdale on March 30 2012, owing over $6.7M including back child support and alimony. He had banked about $60M in his career by his own count. Filings listed 240 pairs of Jordan sneakers among his assets.
Fraud
Jake Peavy, Mark Sanchez, Roy Oswalt and others
The SEC charged adviser Ash Narayan in May 2016 with transferring more than $33M from clients' accounts, mostly pro athletes, into a struggling ticket company where he sat on the board, often using forged or unauthorized signatures. He received nearly $2M in hidden compensation. He was later barred from the securities industry. Lesson: separate custody from advice and read your own statements.
Fraud
Shohei Ohtani (MLB)
Ippei Mizuhara wired nearly $17M from Ohtani's account to an illegal bookmaker's associates in 40+ wires from Nov 2021 to March 2024 without permission. He pleaded guilty to bank fraud and filing a false tax return and in Feb 2025 was sentenced to 57 months, with about $17M restitution to Ohtani and $1.1M to the IRS. Lesson: nobody but you should have unmonitored access to your accounts.
Smart structure
Bobby Bonilla (MLB)
In 2000 the Mets owed Bonilla $5.9M to release him. Instead of paying it then, they agreed to 25 annual payments starting in 2011 with 8% interest built in, totaling nearly $30M. Deferral can pay you well if the payer is solvent and the interest rate is real.
Smart structure
Shohei Ohtani (MLB)
Ohtani's 10-year Dodgers deal (Dec 2023) pays $2M a year during the contract, then $68M every July 1 from 2034 to 2043, without interest. Because the money is received later, California may only tax a small part while he plays, and if he lives in a no-tax state when the deferred payments arrive, the state bill could shrink sharply. Whether federal law (4 U.S.C. 114) fully shields those payments from California is debated.
Moms, dads, grandparents, guardians
When the offers start, the people around your athlete multiply. Some are good. Some are there for a cut. The parent guide covers the questions to ask an agent, how to read an NIL contract before a minor signs it, and how to be the person who can say no.
Read the parent guide