Juan Soto’s Generous Gesture for Brett Baty
Last week, New York Mets star outfielder Juan Soto made headlines with a generous gesture. In a move that underscores both his professionalism and generosity, Soto rewarded third baseman Brett Baty for relinquishing jersey No. 22, a number Soto has worn throughout his career. The compensation? A sleek and stylish Chevy Tahoe SUV, reportedly valued at around $92,000. While the media narrative often portrays this exchange as a simple act of kindness, the underlying mechanics and tax implications add a layer of complexity to the story.
The Mets’ Control Over Jersey Numbers
Despite the generous gesture, it’s important to note that neither Soto nor Baty "owns" jersey No. 22. The Mets, like all Major League Baseball (MLB) teams, retain full control over their uniform numbers. The team assigns numbers, and players do not have the right to trade or barter for them. This control is rooted in the intellectual property rights the team holds over its jersey numbers. MLB’s official rules further detail the procedures for uniforms, including decisions on whether a player’s uniform must display a name or if a player wishes to use a different name, which must be approved by the commissioner’s office.
The Contractual Perspective
According to journalist Jon Heyman, Soto’s contract with the Mets includes a clause ensuring he would wear No. 22. This suggests that the SUV was more of an expensive "thank you" than a bartered exchange, as Baty would have had no choice but to give up the number. However, other reports have painted a different picture, portraying Soto as arranging for Baty to receive the car in consideration for relinquishing his claim to No. 22, even though such a claim would be unenforceable given the team’s control over the numbers.
The Tax Implications for Baty
The generous gift, while well-intentioned, comes with a financial catch for Baty. According to John Dadakis, a partner at Fox Rothchild in Florida and New York City and an expert in taxation and wealth planning, the receipt of the SUV is treated as income to Baty. The amount of income will equal the fair market value of the SUV on the date Baty received it. As a Texan (a state with no state income tax) and a Mets first-round pick in 2019, Baty will pay taxes on the SUV in addition to his other earnings from 2025. His Mets contract calls for him to earn $800,000 in 2025, and he might have additional sources of income, such as endorsements, sponsorships, and stock sales.
The Broader Financial Impact
Baty, subject to federal income taxes, which are 37% for individuals with incomes greater than $626,350 ($751,600 for married couples), as well as payroll taxes, including the Social Security tax, Medicare tax, and the Medicare surcharge. Dadakis notes that Baty will also pay federal income taxes on the receipt of the SUV. His Mets salary and other income are subject to New York state taxes as well as jock taxes levied by other states and municipalities. Baty could have a variety of expenses and deductions that impact his tax calculations, but the receipt of the SUV will undoubtedly add to his tax liability.
A History of Generous Exchanges
The Soto-Baty car exchange is not unprecedented in the world of professional sports. Two years ago, Mets shortstop Francisco Lindor bought second baseman Jeff McNeil a Ford Bronco in recognition of McNeil winning the NL batting title in 2022. Lindor had promised McNeil a car if he achieved the feat and followed through on it. Player exchanges for uniform numbers are also a common practice. Last week, A’s pitcher Luis Severino reportedly "gifted" a Rolex GMT Master II watch, worth about $20,000, to fellow A’s pitcher Mitch Spence to land No. 40. Thirty years ago, Deion Sanders convinced Dallas Cowboys defensive back Alundis Brice to relinquish No. 21 by sending Brice a BMW 325i. Sometimes, the exchange value is remarkably low. In 1991, Philadelphia Phillies first baseman John Kruk gave pitcher Mitch Williams No. 28 in exchange for just two cases of beer.
The Generous Spirit in Professional Sports
These exchanges highlight the generous spirit and camaraderie that often exist among professional athletes. While the Soto-Baty exchange is just one example, it underscores the importance of mutual respect and the significance of personal symbolism in professional sports. Whether it’s a luxury SUV, a high-end watch, or a simple case of beer, these gestures are more than just material gifts; they are tokens of appreciation and respect that strengthen the bonds within a team. As the world of professional sports continues to evolve, such acts of generosity serve as a reminder of the human side of the game, where personal connections often transcend the competitive spirit of the sport.
