Micah Parsons Immediately Loses $3.4M Upon Joining Packers After Podcast Created Rift With Dak Prescott

Micah Parsons finally arrived in Wisconsin on Friday, calling it a “blessing.” After all, he finally received the numbers he desired—the highest among non-QBs. In a surprising move by the Dallas Cowboys, the Green Bay Packers acquired arguably the best pass rusher in the league. For a defense that jumped from 17th to 5th last season, this addition could be a game-changer for them. So, of course, they didn’t hesitate to offer him a whopping $188 million contract, including $136 million guaranteed for four years. This brings his annual remuneration up to $47 million. Or does it?

Well, interestingly, Adam Schefter of ESPN did some accounting for his readers. And it turns out, Parsons already owes $3.4 million in taxes. Yes! His annual salary has become subject to Wisconsin’s state income tax of 7.65%. So the amount he actually takes is less than what the headlines are portraying: $43.4 million. But you know the interesting part: even after this tax is deducted, he will still earn more than $40.5 million per year, which his former team, the Cowboys, offered him, where no state income tax is deducted. 

Tuning in to the conversation, Michael S. Kim highlighted another interesting aspect of this state tax. He claimed that the star edge rusher will only have to pay the taxes for his home games, but this misses an important rule called the ‘jock tax.’ For those unaware, apparently, since the 1990s, states have been levying from athletes based on their income earned while playing in states other than their home. But even if he put aside this jock tax, there are also federal income taxes.

According to a contract-tax breakdown of Parsons’ glittery $47 million by Forbes, the three-time All-Pro will bring home $26 million per year. Now, if he had stayed in Dallas for $40.5 million, he would be making $25.5 million per year post-federal income taxes. Meaning? There’s nothing majorly changed in his financial situation. So why did he make the shift? Well, Albert Breer of Sports Illustrated seems to have the answer. 

It turns out Parsons isn’t a very popular name in the Cowboys locker room. In fact, Breer revealed that Parsons “has rankled teammates in different ways, seen by some as egotistical and self-centered.” Most had issues with his podcast, even star quarterback Dak Prescott, whom Parsons snubbed from his list of top-five QBs in the league last October on his podcast, ‘The Edge with Parsons.’ But things might still have worked if the defensive staff hadn’t had issues with his on-field style. “Previous defensive staffs had trouble with him at times because he would play out of structure in an effort to make big plays, which led to the run-defense issues Jerry and Stephen Jones kept referencing at their press conference,” wrote Breer.

Still, the Cowboys were willing to retain him. But Parsons and his agent were not in agreement with the franchise, citing the length of the contract as an issue. Although for whatever reason, he left Texas, the upcoming season would be difficult for the Cowboys’ defense. Without the four-time Pro Bowler, their defense has been average, and this season, it might end up becoming worse.

Micah Parsons’ contract saga

You know, the issues between Parsons and Prescott might have always been there, discreet to the naked eye. Remember when the quarterback signed the highest-paid contract extension worth $240 million in the league’s history in late August? Just three months later, Prescott made a sharp comment regarding his eligibility for an extension. “I don’t throw numbers out there like that. I’ll see what they’re willing to give me. … I don’t need $40 million,” he said. That time, the highest-paid non-QB earned around $36 million, so of course, Parsons wanted to surpass it, but he had no plans to even touch $40 million.

With Parsons’ contract the biggest topic of discussion this season, Prescott avoided any questions whatsoever. But recently, shortly after the 26-year-old’s feud with Jerry Jones went viral, the quarterback couldn’t help but address the question. When asked if the contract situation has been a ‘distraction’ for the team, he dismissed the idea. Including his own contract saga from last season, he said, “There’s been a case of something similar to this the last three years, I believe, if not before… Not necessarily. I think that people can take it however they want,” he admitted. But he still expressed his confidence in Parsons’ availability for Week 1. But some of the players might have picked up the hints.

Addressing the questions regarding Prescott’s availability for Week 1, Trevon Diggs hinted at some uncertainty. Contrary to the podcast controversy, Diggs claimed that “All the guys miss him.” He revealed that his friend, aka now a former teammate, has been practicing on his own throughout the training camp and the preseason. Now that the contract situation is finally sorted, even if at the Cowboys’ compromise, Parsons might be in shape to start Week 1 for Green Bay.