California Teams Could Face Strikes, Plus High Taxes

California Teams Could Face Strikes, Plus High Taxes

Concession workers in San Francisco’s AT&T Park voted to authorize a strike even though most have full health care coverage and earn $15 to $20 an hour, perhaps raising another red flag as teams like the Sacramento Kings decide whether to locate in California or elsewhere. In addition to not being a Right-to-Work state, California has a 10.6 percent tax rate (see table below, only Toronto and Portland face higher tax rates).

TV station KTVU and others reported on the vote to authorize the strike.

Business owners often tell elected officials that they look at a State’s Right to Work laws even before their tax rate before decided to locate.

Critics may question how much impact paying a concession worker $22 an hour verses $20 an hour can have on a team when players are making millions of dollars. The San Francisco Giants and other teams do not even directly pay the concession workers.

The risk for a team considering locating or relocating in or out of California could be the added threat that they may suddenly have to deal with angry fans and corporate box owners who have to go through a three hour game without food or drink and are thus unlikely to re-up the next year.

So far the concession workers have not actually stopped working, only voted to authorize a strike, so owners will watch to see how it plays out.

NBA Teams/cities State Tax Right to Work?
Toronto Raptors 13.20% No
Portland Trail Blazers 11.00% No
Sacramento Kings 10.60% No
Golden State Warriors 10.60% No
L.A. Clippers 10.60% No
L.A. Lakers 10.60% No
Brooklyn Nets 9.00% No
New York Knicks 9.00% No
Washington Wizards 8.50% No
Minnesota Timberwolves 7.90% No
Milwaukee Bucks 7.80% No
Cleveland Cavaliers 5.90% No
Boston Celtics 5.30% No
Denver Nuggets 4.60% No
Philadelphia 76ers 3.10% No
Chicago Bulls 3.00% No
Seattle (bid for Kings) 0.00% No
Charlotte Bobcats 7.80% Yes
Atlanta Hawks 6.00% Yes
Memphis Grizzlies 6.00% Yes
New Orleans Hornets 6.00% Yes
Oklahoma City Thunder 5.50% Yes
Utah Jazz 5.00% Yes
Phoenix Suns 4.50% Yes
Detroit Pistons 4.40% Yes
Indiana Pacers 3.40% Yes
Dallas Mavericks 0.00% Yes
Houston Rockets 0.00% Yes
Miami HEAT 0.00% Yes
Orlando Magic 0.00% Yes
San Antonio Spurs 0.00% Yes