Lamar Jackson Will Lose 40 Percent of His $260,000,000 Contract Amid Question Marks on Who Is Really NFL’s Richest Star

This offseason has seen money being splurged out by teams. We’ve witnessed two players receive two of the highest-paying contracts in NFL history. After Philadelphia Eagles QB Jalen Hurts showcased his talents leading his team to the Super Bowl LVII finals, they decided to retain him as their QB1 with a 5-year $255 million contract extension. This made him momentarily the highest-paid player in NFL history. But that was until the Baltimore Ravens finally concluded their long-standing contract negotiations with Lamar Jackson.

After months of back and forth, the Ravens agreed to retain Jackson, even after non-exclusive franchise tagging him in the offseason. They went on to offer the 2019 MVP a five-year deal worth $260 million, putting him at the top as the highest-paid player in the league. But Jackson won’t be retaining all of this wealth, as he is set to lose almost 40 percent of the money from his contract.

Lamar Jackson will have to pay tax

Despite NFL players such as Jackson earning huge contracts, they are subjected to paying taxes like any other human being. According to an article by Football Lovers, only eight teams in the NFL do not have state income taxes on their residents, namely the Tennessee Titans, Dallas Cowboys, Houston Texans, Las Vegas Raiders, Tampa Bay Buccaneers, Miami Dolphins, Seattle Seahawks, and Jacksonville Jaguars. 

But despite this exemption, all athletes in the NFL are subjected to paying income taxes. This is because of a special tax called the Jock Tax that is imposed by the states on visiting players who earn money in that place. And Lamar Jackson will also have to pay the Jock Tax, along with state income tax in Baltimore, which will be around 40 percent of his $260 million deal with the Ravens. 

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This leads to a question in the minds of NFL fans. Which player actually earns the most in the league?

Who is the richest NFL player?

One of the most common ways to evaluate a player contract in the NFL is by analyzing the cap space the contract will take. In terms of cash earned, the list of the highest-paid NFL players will be different. And Lamar Jackson sits on the top with $80 million. But in terms of cap space, it is actually another player who is considered to be the highest-paid NFL player in 2023. And it is 2X Super Bowl champion Patrick Mahomes. He sits at the top in terms of cap-hit, with $39.693 million, which includes a $22.4 million roster bonus. The Kansas City Chiefs also reworked his contract, which led to them converting $12 million of his roster bonus into a signing bonus. This led them to clear $9.6 million in cap space. 

While Mahomes is not interested in earning a high-paying contract, he is focused on winning more Super Bowl champions with a strong team. On the other hand, it will be interesting to see if Lamar Jackson can prove his $260 million worth to the Ravens in the upcoming 2023 season of the league.

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