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Rams concede California law will apply to contracts after move is finalized

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The NFL Players Association has taken issue with the apparent effort of the Los Angeles Rams to circumvent the California workers’ compensation system. In response, the Rams concede that, once the move is final, California law will apply regardless of the language of the contract.

Via Rich Hammond of the Orange County Register, the Rams have responded to Saturday’s PFT report regarding the NFLPA’s objection to contractual language selecting Missouri as the forum of choice by admitting that “once the team officially has moved out of Missouri, all of its contracts automatically will fall under California law.” Hammond adds that Rams executives have said the team intends to completely move out of its Missouri headquarters before March 31.

Meanwhile, Vincent Bonsignore of the Los Angeles Daily News suggests that the Rams made the contracts subject to Missouri law through the official consummation of the move before the end of March in order to ensure that any players who sign new contracts before the move happens will pay Missouri state income tax, not California state income tax, at a difference of seven percent savings in favor of the player.

If that’s the case, the move actually represents one last gift to the state of Missouri, via the taxes collected on money paid to players while the team is still technically headquartered in the state. If that’s the case, maybe improved communication between the Rams and the NFLPA could have helped this issue from becoming a thing.

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18 Responses to “Rams concede California law will apply to contracts after move is finalized”
  1. thefox61 says: Mar 13, 2016 4:45 PM

    Curses, foiled again.

  2. nels1959 says: Mar 13, 2016 4:51 PM

    I don’t buy it for a second. Kroenke isn’t the benevolent type. He’s pure greed in every way

  3. 6thsense10 says: Mar 13, 2016 5:07 PM

    From the contract: “The parties hereto acknowledge that this Player Contract has been negotiated and executed in Missouri; that should any dispute, claim or cause of action (collectively ‘dispute’) arise concerning rights or liabilities arising from the relationship between the Player and the Club, the parties hereto agree that the law governing such dispute shall be the law of the State of Missouri. Furthermore, the exclusive jurisdiction for resolving Workers’ Compensation related claims shall be the Division of Workers’ Compensation of Missouri, and the Missouri Workers’ Compensation Act shall govern.”
    ——–
    Hmmmm. I see a lot of contractual language about worker’s compensation but nothing about tax rates. How stupid do the Raams think people are? If all they were trying to do was help players out in regards to taxes why isn’t that specifically spelled out in the contract but worker’s comp policies are?

  4. stl45fan says: Mar 13, 2016 5:15 PM

    What’s a little California state tax evasion for StanK after he stole a team from Missouri?

  5. ramfanmatt says: Mar 13, 2016 5:24 PM

    So every Rams player will get a 7% pay cut because the team moved (difference in taxes). That sucks.

  6. tomtravis76 says: Mar 13, 2016 5:33 PM

    Hmmm…150 million misplaced, not being forthcoming about medical information & now this issue, what government agency is going to have the brass ones to find out all of the misdeeds of the NFL?
    The game on the field is great, but everything else away from the field has become almost sickening with the greed from the owners and league office.

  7. hamlet423 says: Mar 13, 2016 5:43 PM

    So given this is a huge walk back on the earlier article I assume the NFL, the Rams or the NFLPA told Florio to shut up.

    Way to cover yourself.

  8. johnnyjagfan says: Mar 13, 2016 5:43 PM

    Like it should be, Stan the over-dyed hair & ‘stache man! If you want to be in Cali so bad, play by their rules. Wants a mouthful of cake and an entire cake on his plate.

  9. the610limited says: Mar 13, 2016 5:57 PM

    Dang, someone read the fine print!

  10. ebdug says: Mar 13, 2016 6:00 PM

    The owners should concentrate on dodging their own taxes and not get the players involved.

  11. fordmandalay says: Mar 13, 2016 6:03 PM

    So every Rams player will get a 7% pay cut because the team moved (difference in taxes). That sucks.
    ————————————————————-
    Yeah but they’re paying for the privilege of living in California, not Missouri. Priceless.

  12. mongo3401 says: Mar 13, 2016 6:12 PM

    Wrong I don’t care when a contract was signed. Any income of any player is now subject to California taxes.

  13. streetyson says: Mar 13, 2016 6:13 PM

    I guess it figures until they actually move then the contracts have to reflect the state law of their current base, but given the impending move they could have added a footnote – and I don’t blame anyone for reading the small print when dealing with that ownership.

  14. mdintino1420 says: Mar 13, 2016 6:27 PM

    STL needs to stop crying about the Rams and push for an expansion team. STL Stallions sounds amazing!!! They can play in the dome until the new stadium in built.

    Imaging the drama when the Rams return to STL??? They would need extra security.

  15. porterhouse12 says: Mar 13, 2016 6:31 PM

    Tax savings only apply to a signing bonus before the team moves officially to CA (I can only assume if paid before 3-31).

    During the season, the home games are subject to the CA income tax, the away game income is subject to state tax where the game was actually played. That is why players have to file tax returns in all states where they generated income.

    So, basically, it’s not really a 7% decrease in pay due to taxes, more like 3.5% decrease since in theory the away games won’t change too much year to year (only 4/8 away games change because 1/2 of away games are divisional).

    Every player should celebrate playing the AFC East because taxes in IN are average, but state taxes in TN, FL, and TX are low.

  16. hahalolrofl says: Mar 13, 2016 6:46 PM

    I’m sure a greedy scumbag like Stan will find a way to make up for it.

  17. davew128 says: Mar 14, 2016 12:36 AM

    6thsense10 says:
    Hmmmm. I see a lot of contractual language about worker’s compensation but nothing about tax rates. How stupid do the Raams think people are? If all they were trying to do was help players out in regards to taxes why isn’t that specifically spelled out in the contract but worker’s comp policies are?
    ***********************
    Because it’s wholly irrelevant. Income is taxed where its earned and where you live. You couldn’t write a contract that would change the state where its taxed.

  18. davew128 says: Mar 14, 2016 12:37 AM

    porterhouse12 says:
    Mar 13, 2016 6:31 PM
    Tax savings only apply to a signing bonus before the team moves officially to CA (I can only assume if paid before 3-31).

    During the season, the home games are subject to the CA income tax, the away game income is subject to state tax where the game was actually played. That is why players have to file tax returns in all states where they generated income.

    So, basically, it’s not really a 7% decrease in pay due to taxes, more like 3.5% decrease since in theory the away games won’t change too much year to year (only 4/8 away games change because 1/2 of away games are divisional).

    Every player should celebrate playing the AFC East because taxes in IN are average, but state taxes in TN, FL, and TX are low.
    *****************
    Thats the AFC South, and there is no state income tax in TN, FL, and TX.

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