15.3 reasons why Dwight Howard is going to be a Houston Rocket
Dwight Howard will sign a four year, $88 million deal with the Houston Rockets on July 10th. He could have signed a five year, $118 million deal with the Lakers on that day instead. Is he turning up his nose at $30 million? No. He will earn just as much or more over the next five seasons as a Rocket for the first four and the fifth wherever he winds up after he becomes a free agent again in four years.
So why did he make the choice to leave L.A.? There are 15.3 reasons.
2
13.3
Kobe Bryant opened his mouth this week as Dwight Howard was considering which team to sign with and said there is a good chance he will play two more seasons after the 2013/14 season. That's the two above. Hold onto that thought while I explain the other 13.3
Can we agree that Dwight Howard was going to earn $88 million over the next four years, no matter which team he signed with? Good.
13.3% is the amount of California income tax that is due on any income over $1 million in one year. Now state tax is weird. Even if an NBA player is not a resident of CA, he pays CA income tax on that portion of his income that comes from games played in CA. Playing in L.A. versus playing in Houston means that Howard will play 39 fewer games in CA. As a non-resident, he won't pay CA tax on those 39 games each of the next four years.
Not paying that 13.3% on 39/82nds of $88 million will save Dwight Howard more than $5 million in state income taxes. That's a lot of money.
Not playing three more seasons with Kobe Bryant had to be an attractive proposition. Now if Kobe was going to retire after the upcoming season, it would have left Howard, who is only 28, as the superstar player. The team would be built around him. I imagine he would have been patient if it were only going to have been one more season.
There is one other factor in play here. Being an NBA player who plays for a team in L.A. or NYC is much more difficult than when you do it in a smaller market. The media scrutiny is less. The pressure is less. You aren't living in the magnifying fishbowl that life becomes when you're a top professional athlete in the largest or second largest market in the nation.
Expectations are lowered. In L.A., after signing a $118 million deal, anything less than an NBA championship would be a failure in the eyes of the fans. If the Rockets make a run deep into the playoffs next season, Howard's first year there will be a success.
Now let's talk that fifth season contract money. Again, Howard is only 28. Whether it is four years from now, or five years from now, he will sign another maximum dollar deal with an NBA team. He'll earn the maximum salary in that fifth season either way. If he'd signed with the Lakers, it would be XX dollars. Four years from now, he'll sign another contract and it will still be the same XX dollars. The Lakers really weren't able to offer more money when you look at it properly.
Am I sorry to see Howard go? Not really. Winning in the NBA is a lot easier when the players want to be playing for the team whose jersey they wear. Howard didn't really want to be a Laker.
Bye-bye Dwight. Don't let the door hit you in the ass as you leave town.
So why did he make the choice to leave L.A.? There are 15.3 reasons.
2
13.3
Kobe Bryant opened his mouth this week as Dwight Howard was considering which team to sign with and said there is a good chance he will play two more seasons after the 2013/14 season. That's the two above. Hold onto that thought while I explain the other 13.3
Can we agree that Dwight Howard was going to earn $88 million over the next four years, no matter which team he signed with? Good.
13.3% is the amount of California income tax that is due on any income over $1 million in one year. Now state tax is weird. Even if an NBA player is not a resident of CA, he pays CA income tax on that portion of his income that comes from games played in CA. Playing in L.A. versus playing in Houston means that Howard will play 39 fewer games in CA. As a non-resident, he won't pay CA tax on those 39 games each of the next four years.
Not paying that 13.3% on 39/82nds of $88 million will save Dwight Howard more than $5 million in state income taxes. That's a lot of money.
Not playing three more seasons with Kobe Bryant had to be an attractive proposition. Now if Kobe was going to retire after the upcoming season, it would have left Howard, who is only 28, as the superstar player. The team would be built around him. I imagine he would have been patient if it were only going to have been one more season.
There is one other factor in play here. Being an NBA player who plays for a team in L.A. or NYC is much more difficult than when you do it in a smaller market. The media scrutiny is less. The pressure is less. You aren't living in the magnifying fishbowl that life becomes when you're a top professional athlete in the largest or second largest market in the nation.
Expectations are lowered. In L.A., after signing a $118 million deal, anything less than an NBA championship would be a failure in the eyes of the fans. If the Rockets make a run deep into the playoffs next season, Howard's first year there will be a success.
Now let's talk that fifth season contract money. Again, Howard is only 28. Whether it is four years from now, or five years from now, he will sign another maximum dollar deal with an NBA team. He'll earn the maximum salary in that fifth season either way. If he'd signed with the Lakers, it would be XX dollars. Four years from now, he'll sign another contract and it will still be the same XX dollars. The Lakers really weren't able to offer more money when you look at it properly.
Am I sorry to see Howard go? Not really. Winning in the NBA is a lot easier when the players want to be playing for the team whose jersey they wear. Howard didn't really want to be a Laker.
Bye-bye Dwight. Don't let the door hit you in the ass as you leave town.
posted by me at 7:30 AM
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