Gross Income

Gross income refers to the total amount of money earned in any calendar year by an athlete (or any individual) before taxes and deductions.

It includes all revenue streams, such as:

• Base salary
• Signing bonuses
• Incentives & endorsements
• Appearance fees
• Investment returns
• Sponsorships

In sports finance, gross income is the starting number in every contract or net worth breakdown.

It’s the big number fans see in headlines, but not what athletes actually take home.

How Athletes Gross Income In Different Leagues

🏈NFL

How it’s used

Gross income is the total contract value before taxes, agent fees, and proration strategies.

Use cases

• Used by media to inflate the perception of a deal (“$260M contract!”).
• Teams highlight it for PR, even though player take-home is often 50-60% of the actual reported number, due to taxes, agent fees, personal health maintenance, staff and any other mandatory expenses an athlete has.
• Players often have base salaries + signing bonuses + incentives wrapped into their contract yearly gross totals.

Example

Josh Allen’s 6-year, $258M extension is the gross income value.

His net income, after taxes and fees, is estimated around ~$120M.

🏀NBA

How it’s used

NBA deals are often fully guaranteed, so gross income often matches guaranteed money, minus escrow.

Use cases

• Every reported NBA extension headline uses gross income.
• Bonus clauses (All-Star, MVP) also added into gross projections.
• Escrow and union deductions lower the actual take-home.

Example

Jaylen Brown’s $304M supermax contract = gross.

His actual take-home may be closer to $160-180M after taxes and fees.

While this number is still generational wealth, it is not anywhere near the number that is reported by teams and the media to fans.

⚾MLB

How it’s used

MLB gross income includes salary, signing bonus, and deferred payments.

Use cases

• Deferred payments often distort the “real-time” net.
• Some players make less annually but stack value over time.
• Union dues and agent fees reduce net from gross.

Example

Shohei Ohtani’s 10-year, $700M deal sounds massive, but $680M is deferred. His gross is $700M, but his actual cash flow is a different story.

This is also a trick that the Dodgers ownership is known to use on their books. Which is the reason it possible for them to sign big name free agents and retain some of the biggest stars in baseball for long periods of time.

🏒NHL

How it’s used

NHL gross income is usually a combo of base + signing bonuses.

Use cases

• Heavy signing bonuses front-load gross income.
• Lockout-proofing makes up a chunk of “guaranteed” earnings.
• Agent fees + Canadian tax exposure take big chunks from gross.

Example

Connor McDavid’s $100M deal was his gross. But between Alberta tax rates, agent fees, and currency differences, his net is significantly less.

🥊Combat Sports (UFC / Boxing)

How it’s used

Gross income here = fight purse + bonuses + PPV points + sponsorships.

Use cases

• Fighters may get $500K “on paper” but earn $3M+ after bonuses.
• Gross includes locker room bonuses and discretionary money.
• No union, so no escrow, just direct taxes and team costs.

Example

Jon Jones might headline at $500K base purse, but end up actually grossing $2.5M with PPV share, bonuses, and sponsor kick-ins.

Unlike with league sports like the NBA and NFL, top performing fighters can earn much more than the number media outlets report.

⛳Individual Sports
(Golf / Tennis)

How it’s used

Gross income in golf and tennis = tournament winnings + appearance fees + sponsorships + licensing deals.

The new LIV Golf circuit does include contracts for the athletes, but this is a new “league” and not as big as the PGA Tour or Masters.

Use cases

• PGA prize money is considered gross income.
• LIV Golf deals use massive upfronts that inflate reported gross.
• Endorsements can double/triple gross annually.

Example

Rory McIlroy’s on-course earnings might be $8M, but total gross income with Nike and TaylorMade = $40M+.

Golf and Tennis are similar to the UFC and combat sports, where top performers can make significantly more money than what is reported. This is because they do not sign standard contracts, like in major leagues where endorsements and sponsors are usually included.

🏎️Racing / NASCAR / Formula 1

How it’s used

Gross for racers = salary + podium bonuses + sponsor payouts + licensing.

Use cases

• Top drivers like Verstappen or Hamilton have base deals + earn millions in additional bonuses on top of their base salaries.
• Gross includes endorsements from luxury brands, gear companies.

Example

Lewis Hamilton earns a base of $55M. With Mercedes, Tommy Hilfiger, and IWC sponsorships, gross income clears $70-80M annually.

Why Gross Income Matters

Gross income is the headline number, but it doesn’t tell the full story.

In sports finance, the real magic happens after that number is announced:

• In major leagues, taxes, agent fees, escrow, fines, jock tax, and union dues all shrink gross into net.
• Wealth building depends not just on what athletes earn, but what they keep (net) and how they invest towards their post career futures.
• Gross income is how fans see a contract, but net income is how a player survives 20 years post-retirement.

Gross income tells the story. Net income tells the truth.

🔗Related Terms

• Net Income
• Assets vs. Liabilities
• Base Salary
• Signing Bonus
• Escrow

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“Wealth gained hastily will dwindle,
but whoever gathers little by little will increase it.”
— Proverbs 13:11