The Associated Press is reporting that Barry Bonds’ 756th home run ball will be auctioned. Matt Murphy, the man who caught the ball, has consigned the ball to Sotheby’s SCP Auctions. The ball is expected to be worth over $500,000.
Mr. Murphy, who is 21, told the AP, “I’m upset by the decision I had to make…I wanted to keep it. I’m young. I don’t have the bank account. … It would have cost me a lot more to keep it.”
Mr. Murphy was told by several people that he would owe tax on the $500,000 that the ball is worth even if he kept it. While I personally disagree with that (I think he wouldn’t have owed anything until he sold it), it is very clear that he will owe tax on the ball when he sells it. Given federal, New York, and New York City combined taxes (Mr. Murphy is a resident of Queens, New York), I expect that Mr. Murphy will owe about 40% of the net sales price (the gross sales price less the commission the auction house receives).
As for Barry Bonds, his Giants are now playing out the string (they are in last place in the National League’s Western Division). There’s no new news regarding his possible indictment on tax charges.
Tags: BarryBonds, Collectibles