New Tax Could Affect the Seahawks in Free Agency
The Seattle Seahawks’ general manager, John Schneider, has expressed concern about the impact of the new income tax in Washington state on high-earning players, anticipating potential difficulties in signing free agents. This week, Washington lawmakers approved their first income tax, known as the “millionaire tax.” This tax will apply a rate of 9.9% to annual incomes exceeding $1 million, starting in 2028. Governor Bob Ferguson has already expressed his intention to sign the bill, although it could still be subject to challenge. The Seahawks, along with other NFL teams such as the Las Vegas Raiders, Houston Texans, Dallas Cowboys, Tennessee Titans, Tampa Bay Buccaneers, Miami Dolphins, and Jacksonville Jaguars, have traditionally been favored by playing in states without income tax. This advantage has been a key point in their free agent recruitment strategy.The impact of this tax on the Seahawks is a topic of debate among NFL agents. Some believe it will pose a problem, while others argue that it will not significantly affect the team’s ability to attract talent. An agent pointed out that California teams, such as the Los Angeles Rams and San Francisco 49ers, still manage to sign free agents despite the higher taxes. He also mentioned the New York Jets, New York Giants, and Minnesota Vikings as examples of teams that do not seem to be affected by state taxes in free agency. This agent added that, although states with low or no taxes are a benefit, they are not usually the deciding factor for players, who prioritize the best economic offers. Another agent believes that the tax will influence the decisions of free agents, but that they will continue to evaluate offers based on the total amount compared to other players in their position. A different agent expressed that he would not want to pay almost 10% in taxes if he were a player with a lucrative contract, although he highlighted that this will not come into effect until 2028, so it will not be an immediate factor.There were a lot of agents texting me the other day saying, ‘Hey, you can’t use that anymore, buddy,'” Schneider commented on his radio show on Seattle Sports 710-AM. “I think it’s for all the professional teams here in the city. It’s always been a great attraction, especially competing with the California teams. It’s been very important for us. So, it’s going to hurt, from a recruiting standpoint and what that means. I’m sure Mike Reinfeldt and Mickey Loomis and all the cap experts who have been here before, they’re also looking at this and saying, gosh.
John Schneider, General Manager of the Seahawks
