When the Denver Broncos signed Peyton Manning, effectively taking him away from the San Francisco 49ers and the Tennessee Titans, one of the little-heralded components of the negotiation was the effective tax rate, which can significantly affect the take-home pay for professional athletes. According to the Director of Octagon Financial Services, Manning acquired a tax rate comparable to that of his former employer, the Indianapolis Colts, when he signed with the Broncos on Monday:
#PeytonManning will have a 4.6% #tax rate in #Broncos, > the 3.4% he was used to but less than the 10.63% he could have had w/ #49ers #NFL— K Sean Packard, CPA (@Tax_Geek) March 19, 2012
Manning decided to sign with the Denver Broncos on Monday morning after playing 15 years with the Colts. Manning's contract with the Broncos is expected to be worth somewhere between $90 and $95 million.
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