How Much Did Florida Tax Laws Factor Into LeBron James' Decision?

Although two-time MVP LeBron James has been praised by supporters for taking less money in pursuit of winning championships, as this article from AOL News explains, he actually stands to save money by moving to Florida. Why? Because the state of Florida does not have a personal income tax.

James looks to make an estimated $17 million next season by signing with the Miami Heat. Factor in endorsement deals with companies including Nike, Sprint and McDonald's totaling approximately $40 million, and James may find himself saving an estimated $25 million in state taxes over the next five years in Miami. Compare this with New York, where even if James signed a contract with the Knicks for an additional $1.5 million, he would be required to pay almost $1.7 million in state taxes, all on top of the additional income tax taken out of his endorsements.

Although the extra money alone was certainly not the only reason James is moving on from Cleveland -- he does have two friends named Bosh and Wade who will also live and work in the area -- public icons taking state income tax into account is actually nothing new to celebrity culture.

The Economic Effects of the 2010 World Cup

The 19th World Cup has captivated the hearts and minds of people all over the world. In America, the games have drawn the attention of sports lovers – like myself – as well as millions of Americans simply curious about the hype. In fact, the viewership of the first four games this year was double what it was for the last World Cup, which took place four years ago.

Although it is fun to watch the game, and root for your favorite teams, I could not help but wonder about the economic affect of the World Cup on both its host country as well as the rest of the world.

South Africa's Downturn

Unfortunately the FIFA World Cup is being hosted by South Africa while the country is experiencing their first economic downturn in seventeen years. When first proposed, many South Africans were hopeful that their economy would see a boost from both the symbolism of hosting the world wide sporting event, as well as the visitors it would bring. However, many experts warned that this was wishful thinking, and that sporting events have a tendency to harm the economies that support them, often for the long term. Not only does the preparation that goes into hosting a massive sporting event cost the hosting government, but also local businesses often lose loyal customers when crowds take over.

New Infrastructure = New Jobs

The creation of new infrastructure to support the World Cup did create hundreds of jobs in South Africa, although many were only temporary. In order to satisfy FIFA officials, South Africa was required to refurbish or build 10 new soccer stadiums in time for the World Cup. They also had to repair highways, and take actions to increase security, specifically in the area of transportation. While the stadiums were costly and the construction efforts were not cheap, these buildings will remain for years to come and ideally bringing additional revenue to the country.

However, Beijing was expecting to reap the economic benefits for years to come after hosting the 2008 Olympics and is now suffering what experts refer to as “post-Olympic blues,” due to the lack of long-term revenue from their significant investment. It is unclear if South Africa will experience the same problem or not, as the amount of money spent to host the World Cup was not on the same level as the investment Bejing made to host the Olympics.

Increased Tourism, Economic Troubles

Many tourist related businesses, such as hotel chains are profiting off of the huge increase in visitors to South Africa because of the World Cup. However, these tourists will leave once the games are over, and many other local businesses are not as lucky. According to reports, some service based industries offering local services have seen an 80-90% decrease in business since the World Cup began.

Long-Term Implications

In order to reap the long-term benefits of hosting the World Cup, South Africa will need to use the opportunity as a launching pad for an ongoing increase in tourism. Sydney was able to successfully use their hosting of the 2000 Olympics as a world wide branding opportunity, which resulted in significant tourism increases. It is too soon to see what the long-term implications of the World Cup will be on South Africa’s economy, but they do have a significant opportunity to benefit from the costly sporting event.

Benefit to U.S Businesses

Although the World Cup was held outside the United States, it is an International sporting event that millions of Americans are following closely. Therefore, many American businesses have used the opportunity to benefit from the interest in the games. Local bars, restaurants, and casinos across the country are hosting viewing parties, and many larger corporations have also been able to benefit from the World Cup. For example, Jack in the Box offered a customizable “Jack” antenna ball, allowing customers to outfit Jack with a sweatband to show support for a country playing in the World Cup. This small promotion brought additional revenue to the company’s thousands of franchised locations.

World Economy

Unfortunately, financial experts are split on their predictions regarding the impact of the World Cup on the global economy. An analysis of the world markets during and after the previous 18 World Cups shows that stocks declined during the games, and once again in the few months following their conclusion. However, the global economy is showing some signs of recovery from the banking and financial crisis, and it is too early to tell if the World Cup will slow down the recovery or not.

Host broadcasters to 'filter' noise

From ESPN.com:

Are the vuvuzelas at the World Cup too loud? Some broadcasters think so and want to filter them out. BBC received 545 complaints from viewers as of Tuesday morning, so they are considering giving viewers the option of muting ambient noise while maintaining game commentary through its "red button" digital service. Viewers would push a red button on their remote controls to receive the quieter broadcast on a separate listening channel.

According to Wikepedia.com, the vuvuzela, sometimes called a "lepatata" (its Tswana name) or a stadium horn, is a blowing horn up to approximately 3 ft 3 inch in length. It is commonly blown by fans at football (soccer) matches in South Africa. The vuvuzelas are something uniquely African, and FIFA (Fédération Internationale de Football Association) President Sepp Blatter said he is not about to ban the music traditions of fans in their own country.

Several players said the clamor of the horns is having an impact on the field. Netherlands striker Robin van Persie actually got out of a second yellow card -- and a ban from the next game -- by blaming the vuvuzelas for failing to hear an offsides whistle.

Argentina striker Carlos Tevez said the din of vuvuzelas makes it hard for players to communicate with each other on the field. "Those sirens or trumpets -- I don't know what they are -- make it very difficult to speak on the field," Tevez said after Argentina's training session Tuesday at the University of Pretoria. "You have to shout and sometimes you run out of breath, you get a bit more tired. They are extremely bothersome."

But van Persie said he doesn't want to see vuvuzelas banned. "I think we have to respect it, because we are in South Africa, and we need to respect where we are," he said. "This is their tradition. This belongs to them."

So, tell me, what do you think? Sould the vuvuzela be banned at the World Cup games? Why or why not? You can find me on Facebook or Twitter!

The Most Valuable Teams In Sports

The recession hit some businesses hard while affecting other businesses hardly at all; the same can be said for sports teams. According to this article on Fobes.com, there are some teams that are profiting in spite of the poor economy, such as the Dallas Cowboys who top their list of most valuable teams. However, other teams were not so lucky, and showed significant reductions in revenue last year.

The recession has been more visible in the U.S., with the hurt distributed along class lines. The rich had few problems, with the bulk of the highest-valued teams in the NFL, NBA, MLB and NHL holding their own or growing, while negative growth hit the poor and middle class. In the NFL, where the average franchise value inched down about a half a percentage point, the 10 most valuable franchises gained a collective $164 million in value; the rest of the league lost a combined $303 million. Six NFL clubs appear on our top 10 list, led by the Dallas Cowboys and Washington Redskins.

Major League Baseball, where rich clubs help the poor through revenue sharing, suffered a classic middle-class squeeze. Valuation gains showed up in the top six spots and in seven of the bottom nine. But those in the middle--clubs like Atlanta, San Francisco, Texas and Cleveland--lost value.

"It's easier to revive a small-market club, where you can get young (and cheap) guys that play well together," says Tilliss. Example: The Florida Marlins, who went young and cheap and contended for much of the season on a low payroll, saw an 8% jump in value. The San Francisco Giants, still trying to carve out a post-Barry Bonds identity, patched a veteran roster together and lost 5% of their value.

In baseball, only the New York Yankees--who print money through cable riches and a sparkling new stadium--reside in the billionaire's club.

Meanwhile, it's been pretty much an equal opportunity recession in the NBA, where the majority of teams backslid. The value of the reigning champion Los Angeles Lakers dropped by $6 million from a year earlier to $607 million, but still took over the top spot from the New York Knicks, who slipped even more. No doubt, the sponsorship-heavy league is getting pinched more than others right now, after going premium over the past decade with fast-rising ticket prices and expensive luxury suites.

Continue reading at Forbes.com…

10 Professional Athletes that had IRS Tax Problems

As we all have heard, President Obama’s recent nominations have had to answer for some past tax transgressions while under consideration by the U.S. Senate. However, politicians are not the only ones with tax problems. Dozens of athletes and celebrities often feel they are above the law, and do not pay proper taxes on their fortunes. In honor of angry, taxpaying sports fans everywhere, I have put together the following list of 10 professional athletes that had IRS tax problems.

1. Darryl Strawberry

Dodgers star, Darryl Strawberry first got in to trouble with the IRS in 1994 when he was put under investigation for tax fraud. The IRS tacked him with tax evasion, and he had to pay back $350,000 in back taxes, serve 3 years of probation, six years of home confinement, and complete 100 hours of community service.

2. Lawrence Taylor

Former Giants linebacker, Lawrence Taylor filed an incorrect federal income tax return back in 1990. Taylor pleaded guilty to the tax charges in 1997, and was punished with three months house arrest, five years probation and 500 hours of community service for income tax evasion.

3. Pete Rose

Baseball favorite, Pete Rose, also got in to some trouble with the government in 1990, when he filed a false income tax return. Despite his celebrity status, Rose was sentenced to five months in a correctional facility, three months in a community treatment center, 1,000 hours of community service and a $50,000 fine.

4. Helio Castroneves

The recent controversy around Indy 500 racer Helio Castroneves and his supposed $5 million tax debt has shed light on the tax problems sports stars can get in to. He is currently being tried for evading taxes on a licensing deal that he claims to never have received a dime from. Only time will tell whether the Indy 500 and dancing with the stars celebrity actually committed the tax crime.

5. Willie McCovey

Hall of Famer Willie McCovey, like many other athletes who ran in to tax trouble, did so by forgetting to claim cash made during autograph signing. While McCovey pleaded guilty to the crime, he also claimed to have committed it unknowingly, since he had a professional handle his accounting. He was sentenced to two years of probation and fined $5,000.

6. O.J. Simpson

Although infamous for more than his athletic abilities, O.J. Simpson upset the IRS enough to be put on the California tax shame list. His tax debt was over $1.5 million, and he stayed on the list for more than a year.

7. Jesse Owens

The late 1930’s Olympic winner Jesse Owens got himself into trouble with the IRS. After the Olympics, Owens tried multiple business ventures in the United States to profit off his newly found fame. However, one of his ventures lost Owens a fortune and rendered him unable to pay his full tax liability. As a result, Owens was forced to declare bankruptcy.

8. Boris Becker

Famed tennis player and bad boy, Boris Becker, ran right in to tax trouble when it was discovered his apartment was not his priority residence, as previously claimed. As a result, he was given two years probation, fined $500,000, and ordered to pay expensive court fees.

9. Joe Louis

The infamous boxer Joe Louis was not much of a troublemaker before the taxman got to him. In fact, he donated money to the government after the attacks on Pearl Harbor, and even provided entertainment and uniforms to thousands of army troops. However, as tax rates increased Louis began to unknowingly accumulate back tax liabilities. Although he came out of retirement to help pay off his tax debts by fighting again, he died before he was able to fully repay the IRS.

10. Barry Bonds

AAmongst allegations of steroid use, Barry Bonds was also said to have evaded $80,000 in taxes. As of 2009, Bonds is still fighting both cases.

Local Teen Girl Plays on Boy’s Baseball Team

Check out this video on Yahoo, of a news report on a local teen girl. She is the only girl to play on the boy’s baseball team at a nearby high school. Gabby Sanchez is a freshman at Rio Linda High School and has already made it onto the Junior Varsity baseball team, playing along with older male students.

It warms my heart to hear stories like this one. For those of you who do not already know, I absolutely love baseball, and have been playing my entire life. At the age of 11, I became the first female in the history of California to play little league baseball on an all boys’ team. Then when I was 12, I was selected as an All-star player. But Gabby takes the cake.

I strongly encourage Gabby to continue doing what she loves, and to not be concerned about gender stereotypes or what anyone else has to say. Follow your dreams, and do not let anything stand in your way.

Next Big Thing for Major League Baseball: China

According to this article, Major League Baseball has billions of reasons to play ball with China, and its international business chief says the sport's owners are ready to pitch. MLB is hoping to increase efforts to expand Chinese interest in Baseball, similarly to how the NBA courted the Chinese market nearly 20 years ago. Nowadays, the NBA Chinese affiliate accounts for over $2.3 billion of revenue.
"Whether you're a sport, consumer product or any other business, everyone is now interested in China to grow," claims MLB's international senior vice president Paul Archey, who is set to visit Beijing on Wednesday.

Full List of 2007 Baseball Champions

Nutty About Sports.com has a very informative article on their site with a list of all the current baseball champions of 2007. The list includes not only Major League Baseball Champions, but Minor League Baseball Champions, Independent League Champions, College Baseball Champions and Little League Baseball Champions as well. You can see the full list by clicking here.

U.S. Honda Open of Surfing Begins

Today the Honda U.S. Open of Surfing will begin. The competition will begin with the men's and junior competitions at the Huntington Beach Pier. This competition is in it’s 49th year and is the North America's only six-star World Qualifying Series event. It will feature over 600 surfers competing for prize of $175,000.00. The men's competition begins on Monday and the women's competition begins Wednesday. The women's finals will be held July 28 and the men's finals July 29.

Bonds Sits Out Second Game In A Row Due To Injury

According to SFgate.com, Barry Bonds was out of the lineup for the second game in a row but vowed not to go on the disabled list. "I'm not going on the DL. Don't count on me seeing the DL at all," Bonds said. "I won't let myself. I'll work hard. I'll do what I have to do to make sure I don't go there ... unless I get hit by a truck. I'll play through it." He later claimed that he expects to return to the lineup for the series finale tonight. "I was sore (last week) in New York. This kept escalating," Bonds said. "Normally, I'd get through it. I'd never had shin splints. It started hurting in my knees, bad. ... Today, I feel good. I feel I can go out there and play."

San Francisco Giants Beat Oakland A’s

On Sunday the Giant’s beat the Oakland A’s in a 4-1 win, thanks to pitcher Matt Morris. The Giants' veteran pitched a two-hit complete game with nine strikeouts to give the Giants a much-needed win after consecutive losses. ''This was something we needed today and I'm glad I was able to do it,'' claimed Morris. ''I'm not here to be on the back page (of the tabloids), that's for sure. I'm here to get my innings and keep the team in the game.'' For a more detailed recap of the game, check out All Headline News.