As part of a clause negotiated into his three-year, $90 million contract extension signed in 2010, Bryant was allowed to receive up to 80 percent of his $30.5 million salary on the first pay day of the regular season, which was reported on ESPN's SportsCenter Friday. The downside is that Bryant might pay as much as $13 million in taxes on his giant payday, according to ESPN's Darren Rovell.
Steve Vitka of The Washington Post News Service breaks down the logistics of such a financial move:
Since the regular season runs from the end of October into April, Bryant gets six months of return on whatever portion of that salary would have been held from him until April. As a cursory point of reference, 5 percent return on $24.4 million over a year is about $1.2 million.
The move also secures him against any bankruptcy issues, or any new taxes that might creep up next year. ESPN notes that he will take-home “closer to $11 million.” While the state taxes that athletes face while playing on the road raise questions that are probably fascinating to that person you only went on one date with, ESPN also says those are credited to Bryant's California income tax, which already has the highest of any state.
Bryant is still sidelined with his torn Achilles' tendon, but he won the day Friday.
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