It looks like major league baseball players, much like businesses, are proactively and pessimistically trying to avoid the disaster that is the looming second-term Obama economy.
Via My Fox NY:
Team executives and agents wandered into the Agave Sunset lounge at the resort where the general managers’ meetings were held in Indian Wells, Calif. Four of the six flat-screen televisions were showing election coverage, with the other two turned to sports.
President Barack Obama’s victory over Mitt Romney was of as much interest to baseball’s money men as the game scores, given the millions of dollars routinely guaranteed in player contracts these days.
As free agents negotiate deals this offseason, tax policy is an area that comes up along with the usual issues. Some players are wrangling for as much money as they can get before the end of the year to avoid a take hike in 2013.
“Front-loading would make sense if at all possible as tax rates will definitely go up on January 1st on all high-income taxpayers,” agent Greg Genske said in an email. “The only question is HOW MUCH will the rates increase????”
Genske of course should be wary of the tax implications lurking for his clients in 2013. After all, his clients currently represent nearly $100 million in contract values for the 2013 season. Genske represents such clients as C.C. Sabathia, Vernon Wells, Carl Crawford, and Adam Dunn.
Nobody expects to feel sorry for MLB players, but the point here is that prevailing wisdom in the player agent field is to get your money up front, and get it before President Obama can take it away.
Perhaps advice we should all be following…