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How much will Cowboys WR CeeDee Lamb make after taxes in new deal?

CeeDee Lamb's new deal with the Dallas Cowboys is a massive win, but the hefty tax implications tell a different story.

Ali Jawad

Tim Heitman-USA TODAY Sports
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CeeDee Lamb's new contract with the Dallas Cowboys may be worth $34 million annually, but the reality of taxes paints a different picture.

The recent news of the All-Pro receiver's lucrative $34 million per year contract with the Dallas Cowboys sparked excitement among fans, but a closer look at the numbers reveals a sobering reality: after taxes, Lamb's take-home pay is significantly less than the headline figure.

Despite playing in Texas, a state with no income tax, Lamb is still subject to a hefty federal tax bill, estimated at $12.6 million annually. Additionally, he'll pay an estimated $1 million in "jock tax," a levy imposed by states where athletes play games.

Further deductions include agent fees ($1 million) and FICA/Medicare taxes ($800,000).

MORE: Cowboys don’t deserve to be praised for CeeDee Lamb extension

The bottom line? Lamb's net income after these deductions is approximately $18.6 million per year—still a substantial sum, but a far cry from the initial $34 million per year.

For the average fan, it's easy to dismiss this as a non-issue. After all, $18.6 million is still an extraordinary amount of money.

However, in the hyper-competitive world of professional sports, where contracts are often a symbol of status and achievement, the gap between gross and net income can be a source of frustration for players.

This serves as a stark reminder of the complex tax landscape professional athletes face. Even in states without income tax, federal taxes and other deductions can significantly impact their earnings. It underscores the importance of financial planning and savvy tax strategies for athletes to maximize their income.

While Lamb's net income is still enviable, it's crucial to remember that these figures are estimates. The actual tax burden can vary based on individual circumstances and deductions.

The news also highlights the disparity between gross and net income in professional sports contracts. Fans often focus on the headline-grabbing contract values, but the reality of an athlete's take-home pay is often far less glamorous.

In conclusion, CeeDee Lamb's contract is undoubtedly a significant achievement, but it's important to understand the full picture. The complexities of taxation mean that even the highest-paid athletes face substantial deductions, impacting their actual earnings.

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Ali Jawad

ALI JAWAD

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