How Mbokazi’s R10 Million Salary Shrinks Fast In America

When Major League Soccer salaries were officially released this week, many South African football fans were left stunned by the figures attached to some of the country’s stars abroad, particularly Chicago Fire defender Mbekezeli Mbokazi.

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The former Orlando Pirates defender is reportedly earning a base salary of $593 000 (around R9.7 million), while his guaranteed compensation package rises to $655 620, which is approximately R10.7 million per year.

However, life in the United States, particularly for professional athletes, comes with a complicated tax structure that can significantly reduce what ultimately lands in a player’s bank account.

According to information gathered around MLS taxation structures, Mbokazi could realistically lose close to $263 000 (approximately R4.3 million) annually through various taxes and deductions.

That would leave him with roughly $392 000 net income per year, translating to around R6.4 million after tax.

Broken down further, the defender could be taking home around $35 000 per month after deductions, which works out to approximately R592 000 monthly.

Weekly, that figure sits somewhere around $8 000, or just over R136 000.

One of the major reasons for the sizeable deductions is the state he plays in.

Illinois, where Chicago Fire is based, is considered one of the states with a relatively heavy tax burden in the United States, reportedly ranking among the top 10 highest taxed states.

The taxes affecting MLS players are not limited to standard federal and state deductions either.

Players are also subject to what is commonly referred to as “jock tax,” which is essentially a tax athletes pay when competing in different states across America. Because MLS teams travel extensively across the country, players can end up paying taxes in multiple jurisdictions throughout a season.

There is also FICA tax, which covers Social Security and Medicare contributions.

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Importantly, these figures remain estimates and not exact calculations, as factors such as bonuses, agent fees, residency structures and club support mechanisms can all influence the final amount.

Still, it offers fascinating insight into the financial reality behind the glamorous MLS salary figures often reported publicly.