Note that income tax is based on where games are played. So he'll be out about $400k on that $16M. One caveat, states with no income tax often have increased taxes in other areas - property, local, sales - to get their revenue. And then there is cost of living, etc. Not sure about any of that in this case.
This reminds me of an MLB prank. The managers told two young players that they'd been traded from LA to Montreal (when the Expos were there). The players were reeling from the thought of going from the likes of Hollywood to middle of nowhere Canada when Lasorda sympatheticly deadpan s "Wow, that's a huge pay cut going to Canadian dollars." It was hilarious.