Comparison · MLB vs Premier League
MLB vs Premier League: what the same contract pays after tax
On a $10,000,000 contract, a mid-market MLB player keeps about $4,920,000 and a mid-market Premier League player keeps about $4,800,000. MLB pays $120,000 more for the identical headline number.
The same money in six markets
| League | Club | Market | Keeps | Net on $10M |
|---|---|---|---|---|
| MLB | Houston Astros | Texas | 54.1% | $5,415,000 |
| MLB | Chicago White Sox | Illinois | 49.2% | $4,920,000 |
| MLB | San Francisco Giants | California | 40.8% | $4,085,000 |
| Premier League | Arsenal | United Kingdom | 48% | $4,800,000 |
| Premier League | Leeds United | United Kingdom | 48% | $4,800,000 |
| Premier League | Wolverhampton Wanderers | United Kingdom | 48% | $4,800,000 |
MLB runs from 40.8% to 54.1% depending on the market; Premier League runs from 48% to 48%. The spread inside a league is usually larger than the gap between leagues.
What the league takes before tax
| Deduction | MLB | Premier League |
|---|---|---|
| Agent commission cap | 5% | 5% |
| Escrow withheld | — | — |
| Agent fee on $10M | $500,000 | $500,000 |
These come off the top, before any income tax. The two leagues cap agent commission at the same rate, so representation is not where the difference comes from.
Why the difference exists
Tax geography does most of the work. MLB's clubs sit in Texas, Florida, Washington, Arizona and 15 more, while Premier League's sit in United Kingdom. Where a club plays decides the state or national rate, and that rate is charged on the full salary rather than only the portion earned at home.
That is why the best market in the worse-paying league can still beat the average of the better-paying one — a point worth checking before treating either league as uniformly better.