CeeDee Lamb Contract Extension: WR Likely to Lose Almost Half of His $34 Million Annual Pay to Taxes

CeeDee Lamb finally got his big payday from the Dallas Cowboys. After months of negotiations that had netizens biting their nails, Lamb secured a massive four-year, $136 million contract extension, which equates to a $34 million annual salary. But a closer look at the numbers reveals that it’s not even close to what the receiver will take home each year.

Andrew Petcash, founder of Profluence, offered fans a reality check on Lamb’s new contract. His breakdown shows that nearly $15.4 million of Lamb’s annual $34 million salary will vanish due to various taxes and fees in Texas. Federal taxes take the biggest bite at $12.6 million, followed by the jock tax, agent fees, and FICA/Medicare contributions.

When the smoke clears, Lamb’s actual take-home pay lands around $18.6 million per year. It’s a far cry from the headline-grabbing $34 million, but still a life-changing sum for most. Petcash did point out a silver lining: Texas’s lack of state income tax could save Lamb $1-2 million annually.

For the average Joe, $18.6 million might seem like hitting the jackpot. But in the NFL, where contracts are as much about status as they are about security, the gap between gross and net income matters. Players chase not just on-field excellence, but financial bragging rights too.

Moreover, many fans are left stunned by the difference between the contract’s face value and Lamb’s actual earnings.

Living large or just surviving? NFL fans react to CeeDee’s contract

The revelation of Lamb’s actual take-home pay sparked a mixed reaction among NFL fans. Some took a sarcastic tone, feigning concern for Lamb’s “meager” $18 million annual salary.

Comments like “How would he live?” and “Let’s start a GoFundMe page” flooded social media, with one fan quipping, “Doubtful he can afford the @MySundayTicket but guessing he can go StreamEast to offset this paltry salary.”

However, not all reactions were tongue-in-cheek. Many fans genuinely understood how CeeDee Lamb is left in this situation, that despite being tagged as the second-highest-paid wide receiver in the league, his actual earnings barely edge out Diontae Johnson of the Carolina Panthers, who’s ranked 24th in WR pay.

The tax burden drew particular attention, with fans expressing shock at the hefty deductions. “Jock Tax?” while another remarked, “Govt trying to take as much as possible lol.” Others suggested creative solutions, with one proposing, “The amount of real estate I would buy to offset this tax burden would be insane.”

However, with the contract saga finally behind them, the Cowboys can now shift their focus to the upcoming season. Lamb’s absence from the team since OTAs this summer had been a concern, but with the deal inked, both player and team would be ready to tackle the high expectations that come with the 2024 season.