2016 NFL Draft: Here's why the No. 1 pick will make less money than No. 4
Being the top pick isn't all it's cracked up to be.
By
John Breech
•
1 min read
The top pick in the NFL Draft is going to learn an important tax lesson on Thursday: People in California pay a ton of taxes.
The Los Angeles Rams hold the top pick in Thursday's draft, and whomever they select will be heading to a state that charges a 13.3 percent income tax. On the other hand, the player who goes to the Eagles will only be hit with a 3.07 percent state income tax in Pennsylvania.
That's a huge difference, and that huge difference means that the No. 1 player in the draft won't have the highest take-home pay of any rookie in 2016.
Here's a look at what the No. 1 overall pick can expect to make in the first four years of their rookie contract (via Robert Raiola, CPA).
When it pays to be picked 2nd. #NFLDraft2016 #Taxes pic.twitter.com/GK5a9JKF3M
— Robert Raiola, CPA (@SportsTaxMan) April 27, 2016
(For a larger image, click here.)
As you can see, it doesn't pay to live in California. Thanks to the slotted contracts that are given to rookies, we know that the No. 1 pick will make about $25.4 million on a four-year deal (Raiola used the 2015 rookie contract numbers, so that total will be slightly higher in 2016).
If Jared Goff's the No. 1 pick, he'll only be taking home $12.5 million of his $25.4 million after taxes. Both the No. 2 pick and the No. 4 pick in the draft will take home more than that as long as Philly and Dallas hold onto those picks.
The No. 2 pick will take home the most money of anyone in the draft class with an estimated after-tax total of $12.8 million. The No. 4, who would presumably be paying taxes in Texas, would take home $12.7 million.
Raiola notes that he made his estimates based on federal, state and local tax rates. Being in Los Angeles will probably be nice for the No. 1 overall pick, but it won't be cheap.
