Former NFL star Odell Beckham Jr. has questioned the real value of a $20 million annual contract after accounting for taxes, highlighting the significant impact of federal and state income taxes on high-earning athletes. His comments spark broader discussion on long-term financial sustainability for elite sports professionals.
- Odell Beckham Jr. cited a $20 million annual NFL contract as less impactful after taxes.
- Federal income tax on $20 million can exceed 37%, with additional state taxes in high-tax states.
- Net income after federal and state taxes could be below $12 million annually.
- Average NFL career spans fewer than 5 years, limiting the duration of such high earnings.
- Financial sustainability requires long-term planning beyond peak earning years.
- The issue highlights broader concerns about income tax impact and wealth preservation.
Odell Beckham Jr., a former NFL wide receiver known for his elite play and high-profile career, recently stated that a $20 million annual salary feels substantially less after federal and state tax obligations. The remark underscores the financial reality that even multimillion-dollar deals are significantly reduced in take-home pay. While the exact tax rate varies by residence and filing status, federal income taxes alone for a $20 million earner could exceed 37%, with additional state taxes in high-tax jurisdictions like California potentially adding another 10% or more. The net income after these deductions could fall below $12 million annually, depending on deductions and residency. Beckham’s comment reflects a growing awareness among athletes about financial longevity, especially given that most NFL careers last fewer than 5 years. With a typical player requiring financial planning beyond their playing years, the disparity between gross and net income becomes a critical concern. This conversation also touches on the broader issue of athlete financial literacy and the importance of long-term wealth management. Even with substantial earnings, the effective duration of a $20 million annual income—when factoring in taxes, investment returns, and inflation—can be far shorter than expected without disciplined financial strategy. Beckham’s remarks serve as a cautionary example for high-earning individuals across professions. The discussion extends beyond sports, prompting reflections on income tax policy and personal financial resilience. While professional athletes represent an extreme case, the principle applies to any high-income individual facing progressive tax systems and the need for sustainable financial planning.