Last week, New York Mets superstar Juan Soto rewarded third baseman Brett Baty for relinquishing jersey No. 22, which Soto has worn throughout his career.
The cost to Soto: a Chevy Tahoe SUV with a reported value of about $92,000. But thanks to tax law, Baty is not completely off the financial hook.
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Media coverage of the jersey swap has portrayed the exchange as Soto giving Baty a car; the third baseman, who will now wear No. 7, was quoted by MLB.com as saying “it’s just a number.”
Baty might not have had a choice, though. Neither Baty nor Soto “owns” No. 22 for the Mets and thus neither can trade for it or trade it away. Mets’ jersey numbers are the intellectual property of the Mets. The team determines which numbers are assigned to which players.
Meanwhile, MLB’s official rules contain detailed procedures about uniforms for players, coaches and umpires, as well as for other apparel and equipment. For instance, MLB decides if a player’s uniform must have a name. Also, if a player wishes to use a different name than his last name, the preferred name must be approved by the commissioner’s office.
According to journalist Jon Heyman, Soto’s contract with the Mets contains language ensuring he would wear No. 22. That would suggest that Soto buying Baty an SUV was more akin to an expensive “thank you” than a bartered exchange, since Baty would have had no choice but to give up the number. But other reports have portrayed Soto as arranging for Baty to receive the car in consideration for him giving up a claim—even one likely unenforceable since the Mets control jersey numbers—to No. 22.
No matter how the transaction is understood, tax law will regard it as a taxable income event.
According to John Dadakis—a partner at Fox Rothchild in Florida and New York City, and an expert in taxation and wealth planning manners—the receipt of the SUV is treated as income to Baty. The amount of income will equal the fair market value of the SUV on the date Baty received it.
Baty, who is from Texas (where there is no state income tax) and was a Mets first-round pick in 2019, will thus pay taxes on the SUV in addition to his other earnings from 2025. Baty’s Mets contract calls for him to earn $800,000 in 2025. The 25-year-old might have other sources of earnings, including through endorsements, sponsorships and sales of stock. Baty is subject to federal income taxes, which are 37% for individuals with incomes greater than $626,350 ($751,600 for married couples), as well as payroll taxes, including the Social Security tax, Medicare tax and the Medicare surcharge.
Dadakis notes that Baty will pay federal income taxes on the receipt of the SUV. Baty’s Mets salary and other income is subject to New York taxes as well as jock taxes levied by other states and municipalities. Baty could have a variety of expenses and deductions that impact his tax calculations.
Soto, of course, will face a much higher tax bill. As Sportico recently detailed, federal and state tax collectors project to receive as much as $384 million of Soto’s 15-year, $765 million contract ($805 million if the Mets use the right to void a decision by Soto to opt out in 2029).
The Soto-Baty car exchange is not unprecedented for the Mets. Two years ago, Mets shortstop Francisco Lindor bought second baseman Jeff McNeil a Ford Bronco in recognition of McNeil winning the NL batting title in 2022. Lindor had promised McNeil a car if he achieved the feat and followed through on it.
Player exchanges for uniform numbers are also not a new phenomenon. In fact, last week, A’s pitcher Luis Severino reportedly “gifted” a Rolex GMT Master II watch—which is worth about $20,000—to fellow A’s pitcher Mitch Spence to land No. 40. Thirty years ago, Deion Sanders convinced Dallas Cowboys defensive back Alundis Brice to relinquish No. 21 by sending Brice a BMW 325i. Sometimes the exchange value is remarkably low. In 1991, Philadelphia Phillies first baseman John Kruk gave pitcher Mitch Williams No. 28 in exchange for a mere two cases of beer.
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