Coming off the franchise’s second Super Bowl win, the Seattle Seahawks could run into a wall. But not because of a championship hangover.
Seahawks general manager John Schneider warned that the “millionaires tax” awaiting Democratic Gov. Bob Ferguson’s signature will “sting” the franchise’s recruiting and contract negotiations.
“It’s gonna sting; there’s no question about it,” he said about the legislation’s impact on future contract negotiations.
He said the state’s lack of an income tax had been a “huge” advantage. However, the Evergreen State is now looking to impose a new 9.9% tax on earnings over $1 million a year, which will apply to any free agents the franchise signs. First payments will be due in 2029.
Schneider, who has won Super Bowls with two different head coaches at the helm, says the new tax will hurt Washington state teams competing against California, which already has a 13% state income tax on Californians earning over $1 million.
“All the pro teams here in town, it’s always been a huge attraction, especially competing with the California teams (which does have a state income tax),” Schneider said.
“It’s been a big deal for us. So yeah, it’s going to sting from a recruiting standpoint.”
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Nevertheless, the reigning Super Bowl champions have inked some players to deals this offseason, mostly focusing on returning players such as wide receiver Rashid Shaheed, cornerback Josh Jobe, and swing tackle Josh Jones.
But they lost star running back Kenneth Walker III, safety Coby Bryant and linebacker Boye Mafe, though it’s unclear if the threat of the new tax played a role.
Nevertheless, the reigning Super Bowl champions have inked some players to deals this offseason, mostly focusing on returning players such as wide receiver Rashid Shaheed, cornerback Josh Jobe, and swing tackle Josh Jones.
Other top businesses in Washington, like Starbucks, have seen impacts from the pending tax. Starbucks CEO Howard Schultz announced his move to Florida when the tax was passed.
Meanwhile, other professional athletes have shifted their allegiance away from California due to the state’s high income taxes on the rich.
Pitcher Merrill Kelly denied the San Diego Padres, despite the fact that they dangled a better deal than the Arizona Diamondbacks, with whom he signed.
He said the state’s income tax rate played a role in his decision. Arizona’s state tax rate is only about 2.5%.
“I don’t think it’s any secret on how much money you get taken out of your pocket when you go to California,” the right-hander told “Foul Territory.”
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