Comparison · NBA vs NFL
NBA vs NFL: what the same contract pays after tax
On a $10,000,000 contract, a mid-market NBA player keeps about $4,065,000 and a mid-market NFL player keeps about $5,190,000. NFL pays $1,125,000 more for the identical headline number.
The same money in six markets
| League | Club | Market | Keeps | Net on $10M |
|---|---|---|---|---|
| NBA | Dallas Mavericks | Texas | 45.1% | $4,515,000 |
| NBA | Utah Jazz | Utah | 40.6% | $4,065,000 |
| NBA | Sacramento Kings | California | 31.8% | $3,185,000 |
| NFL | Dallas Cowboys | Texas | 56.1% | $5,615,000 |
| NFL | Detroit Lions | Michigan | 51.9% | $5,190,000 |
| NFL | San Francisco 49ers | California | 42.8% | $4,285,000 |
NBA runs from 31.8% to 45.1% depending on the market; NFL runs from 42.8% to 56.1%. The spread inside a league is usually larger than the gap between leagues.
What the league takes before tax
| Deduction | NBA | NFL |
|---|---|---|
| Agent commission cap | 4% | 3% |
| Escrow withheld | 10% | — |
| Agent fee on $10M | $400,000 | $300,000 |
| Escrow on $10M | $1,000,000 | — |
These come off the top, before any income tax. NBA withholds 10% in escrow, which is deferred rather than lost. The agent commission gap alone is worth $100,000 on this contract.
Why the difference exists
Tax geography does most of the work. NBA's clubs sit in Texas, Tennessee, Florida, Arizona and 19 more, while NFL's sit in Texas, Florida, Nevada, Washington and 19 more. 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.