"Next comes federal taxes which account for 37%, based off salary of course and then state tax. This can be a small as 0% in Texas or Florida or as high as 16% in New York. Pronger uses 8% as an example here. This takes another 4,432,000 off the earnings.
Next, agents take 3%, totalling player X's earnings to 2,806,000.
Player X is now netting $2,806,000. That is a lot of money! But now they have to spend a little more money to do their job effectively."