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By Jon Paul Hoornstra
Contributing Sports Writer
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When Colorado voters approved an amendment to the state tax code last week, Amendment 87 created a graduated state income tax that raised taxable income for those earning more than $500,000 starting in 2027.
Denver is home to teams in each of the four major North American men's professional sports leagues, and its highest-paid athletes in football, basketball, baseball and hockey are among those impacted the most by the new law.
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No individual athlete will be compensated more handsomely in the first year of the new tax rate than Denver Nuggets star Nikola Jokic.
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According to Sportico's Michael McCann and Robert Raiola, taxable income above $1 million will be taxed at the top marginal rate of 8.4%, which translates to about $2.5 million more than Jokiç would have paid under a 4.4% flat tax in 2027.
Jokic's five-year, $276 million contract with the Nuggets guarantees him $62.8 million in 2027-28 and $59 million in 2026-27.
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Sportico estimated that the Broncos, Nuggets, Rockies, and Avalanche — as well as the Colorado Rapids and Denver Summit FC — employ "likely around 100 players will earn $1 million or more in 2027." According to Mike Klis of 9NEWS, 52 of Denver's 53 active players earn more than $1 million this season.
Others affected to a lesser degree than Jokic include Colorado Rockies slugger Kris Bryant (guaranteed $26 million salary each of the next two seasons) and University of Colorado head football coach Deion Sanders ($11 million base salary in 2027).
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Colorado was not alone in its zeal to tax the wealthy this year; California put a one-time billionaire tax on its state ballots this month too, but it failed to pass at the polls.
Whether the new Colorado amendment dissuades pro athletes from signing in Denver — or hurts Sanders' future recruiting efforts — remains to be seen. It might have the opposite effect on those seeking five-figure jobs in the state; Amendment 87's graduated tax schedule means reduced taxes for those earning less than $100,000 beginning next year.
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