Articles matching tag: Sport Finance
- Column: MLB Allows Teams to Drop PensionsFebruary 17, 2014
On the eve of spring training, Major League Baseball owners voted to give clubs the option of eliminating pension plans for some uniformed and all non-uniformed employees. Reaction to the move was almost unanimously critical. Prior to the vote, MLB clubs were required to offer traditional pension plans to Minor League employees - coaches, trainers, scouts - and non-uniformed MLB personnel, those who toil away in the front office. Traditional pension plans, known as defined benefit (DB) plans, guarantee retirees a fixed pension amount based on a formula that considers an employee’s earnings, years of service and age at retirement. In most cases, employees get what they are promised. However, if an employer goes bankrupt or the company pension plan goes belly up, the “guarantee” could be in jeopardy. Fortunately for private sector employees, the federal government maintains an insurance fund for such occasions, although pension payments are subject to being reduced.
- Column: Jock Tax UnfairFebruary 10, 2014
Denver Broncos quarterback Peyton Manning took two beatings last week, one from Seattle in the Super Bowl and a second one from the New Jersey taxman. And unlike the game itself, no matter how well he played, there’s no way he would have beaten the tax collector. It’s called the “Jock Tax,” a tax on the income of professional athletes who live in one state and play games in another. Here’s how it works. Take Peyton, he of the $15 million annual salary. The Broncos spent eight days in New Jersey preparing for and playing in the Super Bowl. New Jersey tax law maintains that a portion of Manning’s salary is therefore earned while on state soil. The NFL season is approximately 235 days – referred to as “duty days” - long. Therefore, approximately 3.4 per cent of Manning’s $15 million salary, or $510,000, is taxable in New Jersey.