A sports and marketing expert shares her thoughts on how it may impact the SuperSonics coming back to Seattle.
SEATTLE — A newly signed “millionaires tax” in Washington state is raising questions about whether it could affect Seattle’s professional sports teams and their ability to attract top talent, but experts say the impact is likely to be limited.
The general manager of the Seattle Seahawks told reporters the tax “is going to affect” the team. Still, a sports and marketing expert at Seattle University says there is little reason for concern.
The bill goes into effect Jan. 1, 2028 and the state will start collecting taxes in 2029.
Professor Natalie Welch says the impact will be noticeable, but not dramatic, even as many professional athletes fall into the income bracket affected by the tax.
“So many of the athlete contracts are a million and above,” Welch said. “It’s something that’ll definitely be be considered for them.”
For years, teams in Washington have benefited from the state’s lack of a traditional income tax, something that has helped in recruiting players. Welch noted that advantage is now changing.
“The cherry on top of a deal is no longer really is there,” she said.
The tax, signed into law by the governor Monday morning, targets high earners and is set to take effect in 2028. While it introduces a new financial consideration for athletes and teams, Welch emphasized it is unlikely to drive players away.
“I don’t think it is so much, you’re going to have, like, an uproar of athletes who are like, ‘Oh, I don’t want to play for the Seahawks anymore,'” she said.
Instead, she said, the change will be felt more in contract negotiations, where teams may lose a once-useful advantage.
“We no longer have that advantage, but we have a ton of other advantages: coming to a championship-winning team, the culture that they have,” said Welch. “I think the the west coast in general is just, like, just a little bit of an easier lifestyle, I think, out here, than on the East Coast, and definitely the weather.”
Beyond the NFL, some have questioned whether the tax could impact efforts to bring the NBA back to Seattle. Welch dismissed those concerns.
“I don’t think the the tax would have any impact, and I’m sure that’s probably something the governor communicated to to the [NBA] commissioner,” said Welch.
More broadly, Welch said the focus of the policy extends far beyond professional athletes. The tax is intended to fund programs like affordable child care and support for working families.
“We’re all trying to just afford groceries, right? But it’s like, if we have a little bit of that extra money to go to games, and to go to these kind of events?” she said. “It’s kind of that trickle down effect.”
In the end, Welch said, financial considerations are just one factor among many. She says winning culture, lifestyle, and opportunity continue to play a larger role in where athletes choose to play.