Quarterback Jimmy Garoppolo's 5-year $137.5M contract with the San Francisco 49ers will mean an added $3M tax bill under the new tax law, according to one tax expert. Garoppolo would have saved $2M in taxes had he instead signed with the Denver Broncos in lower-tax Colorado. (Photo: AP)
(Bloomberg) –If your favorite NFL team doesn't make it to the playoffs, President Donald Trump's tax overhaul might be in part to blame.
The 2017 law could put teams in states with high personal income tax rates at a disadvantage when negotiating with free agents thanks to new limits on deductions, including for state and local taxes, according to tax economist Matthias Petutschnig of the Vienna University of Economics and Business.
Petutschnig's research into team performance over more than two decades shows that National Football League franchises based in high-tax states lost more games on average during the regular season compared to teams in low or no-tax states.
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