Trade to Rockets saves Russell Westbrook $10 million in taxes
Russell Westbrook was already earning a handsome salary after he signed a five-year, $205 million salary with the Oklahoma City Thunder back in 2017. However, he is going to be saving that much more money after being traded to the Houston Rockets.
According to Forbes writer Sean Packard, Westbrook will save $10 million in taxes by relocating from Oklahoma City to Houston:
But that is not where the savings end. Forbes estimates that Westbrook earns $18,000,000 a year in endorsement income. Shifting that income from Oklahoma to Texas saves him $900,000 a year in state taxes. And assuming Westbrook has accumulated an investment portfolio over his time in the NBA, he will shift interest, dividend and capital gain income from Oklahoma to Texas as well.
All told, Westbrook will save about $10,000,000 in state income taxes over the next four years.
Packard also discusses how Westbrook will save about $1 million annually on state taxes alone, because the income rate is higher in Oklahoma than it is in Texas. He takes a stab at estimating the financial impact of Chris Paul’s potential move to a place like Miami, as well:
One team Wojnarowski is reporting Paul could be traded to is the Miami Heat. If that is the case, Paul could end up a winner as well, saving about $100,000 a year on road game taxes.
Westbrook’s arrival in Houston should make for some fascinating storylines next year. He is reunited with former Thunder teammate James Harden for the first time since 2012, when Oklahoma City made it to the NBA Finals.
Can Westbrook and Harden get the Rockets over the hump in the Western Conference?