Works the same in every sport. It's weird it was never seen or even reported for years but has always been a disadvantage for high tax state teams.

Take the NBA , They have just signed a new CBA that handcuffs any teams getting free agents at all , let alone state taxes.

This CBA and the prior one were to level the playing field for small market teams. So states with higher or in cases like Texas and Florida, no income tax

there should be an adjustment to caps to cover this . imo.