It’s no secret anymore that seven times Ballon d’Or winner Lionel Messi is setting foot on American soil after the Argentinian agreed a deal with David Beckham’s Inter Miami CF. Earlier, details on his salary were revealed; however, a certain rule will take away a big chunk of Messi’s salary.
Lionel Messi’s estimated salary is believed to be a gigantic $55 million annually. This huge remuneration, along with the added deals from Apple and Adidas, will set him on his way to becoming the highest-paid athlete in the United States. However, he will lose a large amount in taxes thanks to a particular tax rule popularized by NBA legend Michael Jordan.
Messi loses big in taxes due to Michael Jordan’s popularized rule
Despite being one of the wealthiest sportsmen in the world, Messi has an infamous record of being called out for tax fraud multiple times. The United States has a pretty tight and unforgiving tax system, something that is very difficult to avoid.
Andrew Petcash has broken down Messi’s income in a recent tweet. Take a look:
Lionel Messi is set to be the highest-paid athlete on US soil.
And his taxes will be steep: 👀
$20.35M: Federal Tax
$0: Florida Tax
$0: Agent Fee
$1.64M: Jock Tax
$31.7M: Net Income pic.twitter.com/OAROpZtzl7
— Andrew Petcash (@AndrewPetcash) June 20, 2023
The Jock Tax is the most unusual thing he has to pay. The rule, which had been in place since 1991, became widely known thanks to Michael Jordan. The Jock tax is a hypothetical levy on the income of celebrities with widespread public recognition, most commonly athletes. It is also applied when athletes make a lot of money from sources other than their home state.
The 1960s marked the introduction of this regulation. The Bulls’ 1991 NBA Finals victory over the Lakers marked its official implementation and widespread acceptance. When MJ won his first championship, the IRS mailed him a $10,000 tax bill.
How Lionel Messi to exceeds LeBron James as Highest paid athlete?
LeBron James will earn $46,900,000 in NBA salary during the upcoming 2023–24 season. LeBron is one of the best players in the NBA, if not the best. He is a true American superstar. However, Messi stands to make more money from day one in the United States, with a $55,000,000 contract with Inter Miami alone.
And when you factor in the endorsements, sponsorships, and ownership stake he will get, there is really nothing to compare it to.
Trying to put Lionel Messi's 2011-12 season into perspective 🤯 pic.twitter.com/DJ0p0rPCJL
— ESPN FC (@ESPNFC) June 21, 2023
What are your thoughts on Messi becoming the highest earner in the US? Share your thoughts with us in the comments.