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Los Angeles Angels: Mike Trout’s new extension is in risk of being voided

By Jason Reed

ANAHEIM, CA - MARCH 24: Mike Trout #27 of the Los Angeles Angels of Anaheim, sits with his wife Jessica Trout as he attends a press conference after agreeing to the terms of a 12-year, $430 million contract extension at Angel Stadium of Anaheim on March 24, 2019 in Anaheim, California. (Photo by Jayne Kamin-Oncea/Getty Images)
ANAHEIM, CA - MARCH 24: Mike Trout #27 of the Los Angeles Angels of Anaheim, sits with his wife Jessica Trout as he attends a press conference after agreeing to the terms of a 12-year, $430 million contract extension at Angel Stadium of Anaheim on March 24, 2019 in Anaheim, California. (Photo by Jayne Kamin-Oncea/Getty Images) /
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The Los Angeles Angels could be kissing Mike Trout’s new 12-year, $430 million contract extension goodbye due to legal reasons.

The Los Angeles Angels were able to completely avoid a Mike Trout free agency sweepstakes, similar to the Bryce Harper and Manny Machado situation, by signing the superstar to a 12-year, $430 contract extension.

Trout was already under contract for another two years, meaning the Angels were able to add another 10 years onto his contract. This is huge for the Angels as the team has not contended with Trout and it was not unreasonable to think that Trout would want out of Anaheim.

Trout apparently did not want out but he might have to rework a new contract in two years when he becomes a free agent due to legal reasons. By then, who knows if Trout still wants to be an Angel and might want to sign elsewhere because of these tax implications.

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Trout’s contract is the largest contract in sports history and we have never seen this tax precedent take effect because no contract, especially in the state of California, has exceeded $400 million.

The legal precedent would essentially fine Trout for signing the largest contract in baseball. In learning the news, Major League Baseball has overridden the contract and given him an opt out after year two if he wants to avoid this.

Article 4.1.2019 states that if a person exceeds $400 million in earnings from their employer (which is usually used for movie stars and billionaires in Silicon Valley) then they must pay an additional 30 percent of earnings after $300 million on top of state tax back to the state.

That means that on top of the taxes he pays, Trout has to pay another $39 million to the state. When asked for a comment, state representative Bo-Gus Johnson said the following:

"Unfortunately, we have never seen a situation like this for an athlete and we cannot make exceptions."

The state did say there is one loophole in this that would keep Trout from paying the tax, however, it is extremely unlikely. If Trout agrees to serve as an astronaut during the offseason for five years then the state will void the extra fine.

Trout, who is used to hitting baseballs to the moon and not flying to it, likely won’t take up astronaut life in order to stay in Anaheim.

The Angels are going to reach out to a professional lawyer that is right down the road, Mickey Mouse, in order to try and get this issued resolved. If he cannot fix it, he knows a guy that might be able to, but he is kind of Goofy.

Either way, this feels like a nasty prank for the Los Angeles Angels and Mike Trout.

Next. Calhoun primed for a comeback year. dark

Well, because it is. April Fools!

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