That is mostly incorrect. Players are employees just like any other members of the organization including the coaches. They receive (very complex) W-2's. You are correct that income gets taxed in the states that the team plays, but it is not quite that simple. As maddenboy pointed out, residency factors in importantly in this equation. If a player is a NY resident then they will pay tax on their worldwide income (just like we all do) and they will take a tax credit for the taxes paid to other states. As far as I would hazard a guess, Marrone is probably still a NY resident and will pay tax on any income he receives as long as he remains one, regardless of where it was earned. Interestingly (at least to me) there is no special tax code for athletes, these same rules apply to widget salesmen, lawyers, etc. The technology doesn't exist (yet) to enforce the rules against the average person and there is not enough money in it for the states to go after, but obviously there is with the athletes and their schedules are readily accessible, so many think these rules only apply to them. Also, most of the high profile court cases in this area involve athletes.