Paul L. Caron

Saturday, October 31, 2020

The Jock Tax: How The NFL Can Level The Playing Field

Mike Dignetti (Penn State), The Jock Tax: How the National Football League Can Level the Playing Field:

There are thirty-two NFL teams located across twenty-three different states. State and local tax rates assessed in the different locations range from 0% to 13.3%. NFL teams play at least sixteen games every year, eight of which are played at opposing team’s locations. Due to this, NFL players can be required to file upwards of nine different state and local tax returns per season. This study analyzes the effects the difference in tax rates have on the competitive landscape of the NFL and proposes a solution to eradicate the competitive advantage state and local taxes currently create within the NFL. Specific player contracts and hypothetical player movements are analyzed to demonstrate the actual effects of state and local taxation on NFL players.


In conclusion, by adopting the proposed floating salary cap based on effective tax rates on a per team basis, the NFL modifies its league structure to minimize the state and local tax effects recognized by NFL players.

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