Comparison · NFL vs MLB
NFL vs MLB: what the same contract pays after tax
On a $10,000,000 contract, a mid-market NFL player keeps about $5,190,000 and a mid-market MLB player keeps about $4,920,000. NFL pays $270,000 more for the identical headline number.
The same money in six markets
| League | Club | Market | Keeps | Net on $10M |
|---|---|---|---|---|
| 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 |
| 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 |
NFL runs from 42.8% to 56.1% depending on the market; MLB runs from 40.8% to 54.1%. The spread inside a league is usually larger than the gap between leagues.
What the league takes before tax
| Deduction | NFL | MLB |
|---|---|---|
| Agent commission cap | 3% | 5% |
| Escrow withheld | — | — |
| Agent fee on $10M | $300,000 | $500,000 |
These come off the top, before any income tax. The agent commission gap alone is worth $200,000 on this contract.
Why the difference exists
Tax geography does most of the work. NFL's clubs sit in Texas, Florida, Nevada, Washington and 19 more, while MLB's sit in Texas, Florida, Washington, Arizona and 15 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.