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Northeast Ohio's loss is Southeast Florida's gain.
According to economists' estimates, the loss of LeBron James to businesses around the Quicken Loans Arena in downtown Cleveland and in Northeast Ohio are between $20 million and $40 million.
But it was an ESPN report by Chris Broussard, the morning of the July 8 prime-time televised announcement by James, that caught Coffee Talk's interest.
Broussard, who predicted correctly that James would join the Heat, and not stay in Cleveland or go to the New York Knicks, New Jersey Nets, Los Angeles Clippers or Chicago Bulls, reported that one of the key reasons for James' decision is that Florida has no state income tax.
On a $96 million contract, that is a lot of dough.
James will save millions during his five-year contract, not to mention the income from Nike and Gatorade endorsements, and all the others Florida's new star is likely to attract.
The Palm Beach Post reports that James' state income taxes would range from zero with the Heat to nearly $2.9 million with the Chicago Bulls, roughly $8.6 million with the New York Knicks or New Jersey Nets, and $10 million with the Los Angeles Clippers.
The story also quotes Kelly Smallridge, president of the Business Development Board of Palm Beach County, saying, “Make no mistake, LeBron James is as large as any corporation moving to our area.”
Coffee Talk couldn't help notice that no city or state funds were needed to bring James to Florida, just an environment of low taxes — and maybe a little arm-twisting by Heat star Dwyane Wade and the hope of multiple future NBA championships.
The Heat's other free-agent grab this summer, all-star Chris Bosh, also leaves high income taxes behind in Toronto.
Florida (Miami Heat): 0%
Illinois (Chicago Bulls): 3%
Ohio (Cleveland Cavaliers): 5.925%*
New York (New York Knicks): 8.97% **
New Jersey (New Jersey Nets): 8.97%
California (Los Angeles Clippers): 10.55%
*Cleveland collects a 2% income tax.
**New York City's highest income tax rate is 3.65%.
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