The LA Rams’ season-opener against the San Francisco 49ers in Melbourne will cost Matthew Stafford a lot of money.
The Rams and 49ers will play what will be the first-ever NFL game played on Australian soil, as they look to do battle at the iconic Melbourne Cricket Ground.
Matthew Stafford will be hoping to get off to a winning start for the season, especially considering how much money he is set to lose by playing in Australia.
Photo by Ric Tapia/Getty Images
Matthew Stafford will only take home $947K of $2.2 million Week 1 salary
Matthew Stafford will be paid $2.2 million for his Week 1 fixture against the San Francisco 49ers. However, he won’t take home even half that amount.
Because the game is being played in Australia, Stafford will have to pay taxes because he is earning a salary on foreign soil.
The tax to the Australian government is estimated to be close to $960,000, a little under half of what he will make in Week 1.
But, of course, as someone working and residing in California, Stafford will also be liable to pay California state and federal taxes.
Stafford will have to pay nearly $293,000 to the state of California, while paying an estimated $814,000 to the federal government – an amount partly offset by foreign tax credit.
In total, Stafford is expected to pay a combined total of nearly $1.25 million in taxes out of his $2.2 million salary for Week 1.
This leaves the reigning AP NFL MVP with close to $947,000. Now, given that Stafford just signed a one-year, $55 million extension with the Rams, losing this amount is hardly going to hurt him financially.
But the taxes athletes have to pay tend to become a huge discussion point, as some fans use them to justify the massive contracts their teams sign with these players.
The argument usually goes that the high-value contracts are designed to be this way to ensure these players make what they are worth even after paying taxes.
Regardless of whether that is the case or not, there is no denying that Stafford’s Week 1 salary tax would shock the average fan, but wouldn’t make a dent for the former Super Bowl winner.
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