Out of His $42,000,000 Paycheck, Aaron Rodgers Had to Pay $400,000 in Jock Taxes & Michael Jordan is the One to Blame

Aaron Rodgers made headlines this off-season when he moved to New York after 18 years at Green Bay. During his last season with the Packers, Rodgers earned around $42 million as part of his contract alone. However, of that money, he had to part with over $400,000 in taxes, all thanks to Michael Jordan.

Rodgers left the Packers for the Jets after their abysmal season last time around. Failing to make the playoffs, and struggling to fix issues in the offense pushed Rodgers over the fence, and he ultimately decided to shift teams. While he was also heavily linked with the 49ers, he ultimately chose to close a deal with the Jets. Rest assured he’ll be losing a chunk of that as tax as well.

Why did Aaron Rodgers pay almost $400,000 in taxes?

Rodgers’ massive tax payment comes as a result of states imposing what is popularly known as the “Jock Tax”. As explained by Andrew Petcash, an athletic finances expert, on Twitter, the tax basically means athletes playing in a certain state have to pay that particular state taxes from their income. For example, if Rodgers plays a game in California, he will have to pay a tax from his income from that game alone.

Rodgers had to spend almost $400,000 from his salary last year just as jock tax. Though, this may not be much for him, given his massive $42 million payout (per spotrac) last year. However, it is still a massive amount when levied on players with smaller earnings. This makes all the high-glitz salary contracts seem nothing, as most of it is going into taxes anyway.

Aaron Rodgers paid over $400k in jock tax last year…

And it was because of Michael Jordan.

Here’s the fascinating breakdown: 👇 pic.twitter.com/2VVTnXzFfB

— Andrew Petcash (@AndrewPetcash) January 8, 2023

It first started when Michael Jordan and the Chicago Bulls beat the LA Lakers in California. A few days later, MJ’s accountant was informed that MJ had to pay taxes to the State of California. The State of Illinois, seemingly as an act of revenge, enacted a similar policy, wherein players from California will be charged with a tax if they played in Chicago. This soon spread, and every state imposed its own “Jock Tax”.

However, do not be deceived by the name. “Jock Tax” does not apply to athletes alone. It also applies to trainers, doctors, coaches, and almost anyone who earns in multiple states along with the members of the team. The revenue from this is massive too, California alone earns around $250 million from Jock Taxes every year.

Rodgers restructures his contract to help the Jets go under the salary cap

Aaron Rodgers signed a 3-year, $150 million extension with the Packers a year before he joined the Jets. However, the Jets were at risk of exceeding the cap if they inherited Rodgers’ contract. A-Rod came in clutch for his team even before the season started by agreeing to a contract restructure, that sees him get paid just $1.162 million this year, which accounts for his base salary.

Rodgers is being hailed as a messiah by the Jets fanbase. With a young and talented team at his disposal, many believe Rodgers can give the Jets a chance of making the playoffs this season. Rodgers would want to do that too, and perhaps play out his final few seasons in the best way possible. Will Rodgers find success in New York?