Via Jon Heyman -
The Yankees have not yet set a deadline for their $140-million, six-year offer to free-agent starting pitcher CC Sabathia, and according to someone familiar with their thinking, they have no intention to pull the offer anytime soon.
New Yankees boss Hal Steinbrenner was responding to a reporter’s question when he said, “We made an offer. It’s not going to be there forever.” And all he meant was exactly that. Not forever.
It appears now that the Yankees aren’t about to set a deadline — at least not yet.
The Dodgers, Giants, Angels, Red Sox and incumbent Brewers all have interest in Sabathia. But to this point, no one has emerged to play in the Yankees’ dollar stratosphere, and they remain the favorite to win the Sabathia Derby.
One element that I haven’t seen anyone look at here is the tax issues that face CC if he takes the New York offer.
If he lives and “works” in California (meaning that he plays for the Giants, Dodgers or Angels) I would assume that he pays California taxes.
However, if he lives in California (which I believe that he does) and he “works” in New York (playing for the Yankees) would he then not have to pay some combination of California and New York taxes? (I ask it as a question because I’m not sure.)
Assuming the answer to the latter is yes, at some point then, does the value of a dollar earned in New York become less than the value of a dollar earned in California, for CC, because of the tax impact…and…then some team on the West Coast really doesn’t have to match the Yankees offer (dollar for dollar) in order to be equal?
Again, I’m not sure – are they any accountants in the house that would know the answer to this one?