Full Breakdown
Myles Garrett Faces $3 Million Tax Hit in Move to Los Angeles Rams
6/2/2026, 9:11:21 PM
The Tax Implication of the Option Bonus
Defensive end Myles Garrett, traded from the Cleveland Browns to the Los Angeles Rams, is set to receive an option bonus of $29.2 million (or $39,358,875). Because the payment is due seven days before the regular season, the bonus will be taxed based on his state of residence. Moving from Ohio, where his top tax rate is 3.125 %, to California, where it is 13.3 %, creates a tax differential of more than 10 %—a loss of over $2.9 million after taxes.
Background & Context
Garrett waived his no-trade clause to join the Rams. He previously forfeited a $1 million offseason workout bonus by skipping Cleveland’s OTAs. Because the bonus is scheduled before his relocation, his representatives are exploring whether the payment can be structured as an Ohio-based transaction to avoid California’s higher tax rate.
Financial Data & Statistics
The option bonus is $29.2 million (or $39,358,875). Ohio’s top tax rate is 3.125 %, while California’s is 13.3 %. The projected tax loss exceeds $2.9 million, and Garrett already forfeited a $1 million workout bonus. Combined, these numbers imply a net loss of nearly $4 million if the bonus is taxed at California rates.
Official Perspectives & Responses
Pro Football Talk analyst Mike Florio highlighted the tax issue, noting that the situation is a non-football matter that could have negative financial consequences for Garrett. He also indicated that California would likely contest any arrangement that attempts to pay the bonus while Garrett remains an Ohio resident, as the state stands to lose revenue.
Criticism & Opposition
California tax authorities are expected to oppose a pre-relocation payment, arguing the bonus should be taxed once Garrett establishes residency. Business observers note that any top businessman would avoid a scenario that reduces tax revenue, and such tactics could set a precedent for other high-earning athletes.
Conflicting Reports & Gaps
Sources differ on the option bonus size—one cites $29.2 million, another $39,358,875—creating uncertainty about the tax impact. No official comment from the Rams or California’s tax agency has been published, leaving the feasibility of a pre-relocation payment unverified.
Potential Strategies and What’s Next
Garrett’s agents, lawyers, and accountants are evaluating legal avenues to secure the bonus before his move. The outcome will hinge on negotiations with the Rams and any legal challenges from California. Analysts suggest the case may influence future contract designs for players relocating across state lines, especially when large bonuses are involved.
