The 2021/22 NBA season will be a record-setting one for luxury tax payments.
According to data from Albert Nahmad of HeatHoops.com and Yossi Gozlan of HoopsHype, the league’s previous single-year record for total luxury tax payments was $173.3MM, back in 2002/03.
This season, the Warriors‘ tax penalties alone will nearly match that league-wide record. And they’ll be joined by six other projected taxpayers whose combined end-of-season bills would eclipse the previous record even without Golden State’s help.
[RELATED: Hoops Rumors Glossary: Luxury Tax Penalties]
In the space below, we’ve done our best to ballpark the current tax bill for each of this season’s seven projected taxpayers. These numbers may end up looking slightly different after the season, since it can be tricky to pin down the precise amount of a tax bill during the season.
Earned and unearned incentives in certain players’ contracts can affect eventual tax payments, and not all of the criteria for those incentives are public. Even the incentives that are known may not have been decided yet — for instance, Nets guard Kyrie Irving will earn a $137,500 bonus if he makes at least 88.5% of his free throws this season. He’s currently at 91.9%, but has only had 62 attempts, so it remains possible his free throw rate will dip below 88.5%, costing him that bonus and reducing Brooklyn’s tax bill.
Additionally, even after the trade deadline, a team’s tax bill remains fluid due to possible forthcoming roster moves, suspensions, and a handful of other factors. The Sixers‘ projected tax bill just increased last night when they officially signed DeAndre Jordan to a rest-of-season contract.
With all that in mind, here are the current projected penalties for this season’s probable taxpayers, based on our math, along with salary data from Spotrac and Basketball Insiders:
- Golden State Warriors: $170.3MM
- Brooklyn Nets: $97.0MM
- Los Angeles Clippers: $82.5MM
- Milwaukee Bucks: $56.5MM
- Los Angeles Lakers: $45.0MM
- Utah Jazz: $18.8MM
- Philadelphia 76ers: $13.9MM
In total, these seven teams project to owe a staggering $484MM in luxury tax payments.
Half of that total will be dispersed to the league’s non-taxpayers, which means that 23 teams should be in line to split a pot of about $242MM. That would work out to a payment of approximately $10.5MM for each of those 23 non-taxpayers.
These numbers make it more obvious why a team like the Celtics made a concerted effort to get out of luxury tax territory at the trade deadline. A tax bill of $2MM or so wouldn’t break the bank for Boston’s ownership group, but the C’s generated more than just $2MM in savings by ducking below the tax line — they’re now in line to be one of those 23 teams that receives a $10MM+ windfall.
It’s worth noting too that the Warriors are the only one of these seven projected taxpayers who will be subjected to “repeater” penalties this season, so it’s not as if those more punitive repeater penalties are fueling this year’s record-setting totals. Even without the repeater penalties, the Dubs would still owe approximately $131.1MM in taxes.
Warriors can trade away Wiggins salary
9th seed Lakers may trade away Davis and Horton Tucker to Celtics for Brown and Horford
Then Lakers waive Horford
The Celtics would never make that trade. Street-clothes Davis is too injury prone for the Celtics to give up Brown.
They can keep brown LOL no tatum and multiple 1st no Davis cut it out
Warriors will most likely trade Wiggins this off season because there is 0 chance he resigns with them for less money. Players don’t take pay cuts and they can’t afford his contract once it expires because Draymond will want a raise with his contract expiring.
You’re probably right and it’s because of Jonathan kuminga.
Moody and Kuminga can take his place for the same amount.
Dray is paid through 23/24 player option year. He could demand more but the increase to budget is not that much.
The reason to trade Wiggins is the old one: he makes too much… even as an expiring. Some match has to be found.
Factor in that Kuminga, Wiseman, Moody is your future Wiggins payroll hit is was too much for GSW to resign. Wiggins has not looked like more than a role player the last 2 months.
Draymond will retire after 24′, he already has his next job lined up
I do agree Wiggins is primed to be dealt next year tho it won’t be to save tax money it will be a power play that shakes up the NBA
According to reporters, Westbrook will be in trade market again this offseason
Lakers may trade away his luxury tax
Only problem nobody is willing to pay him that much money. Unless the Lakers attach something good to him thee is 0 chance he is traded. My bet is they work out a buy out even if it only saves the Lakers $10 million.
My opinion is that Russell Westbrook would not give up 10 million dollars.
He’ll give up five million which could be the two years of minimum salary a new team would pay him after a buyout?
He might give up $10 million with how big his ego is to play for another team. Lakers need to make the decision fast because the longer they wait the harder it will be for them to buy him out.
Trading Westbrook will be extremely difficult. It would probably have to be a 3 or 4 team thing so he is lost in the headlines.
The Lakers don’t have much to give a single team to take Westbrook but perhaps what the Lakers can give will be attractive to a couple other teams that will give the new Westbrook team an attractive asset like a first-rounder.
That new Westbrook team could be a bottom dweller with lots of cap space. I’m not sure I even really see a Westbrook trade happening but I’m sure the Lakers will try their darndest this summer to do something.
Can’t see the rest of league being willing to help out the Lakers. They just don’t have the ammo to make it worth while for any team. Rest of the NBA is profiting off the Lakers demise
Lakers should target DNP Kawhi and Zion
A Westbrook trade is very obtainable this offseason
Now it actually helping the Lakers overall in the next 3 years is almost unobtainable
It’s of my beliefs, as hard as a pill as it is to swallow, that they should just eat next year and prepare themselves for 23′ summer of free agency with a fully loaded gun
That’s easy to type from my Lazy-boy but it’s not going to be easy for LeBron to have another year spun down the drain. It will get ugly, hopefully Jeanie weighs the full picture and doesn’t get too caught up in the emotion. She’s made the bed now….
Good post Cap.
Within a few years, the Clippers will be atop this list. Mark my words.
Next year Dallas is going to be paying near 100 mill in tax most likely (close to Brooklyn this year)
Only way to win!
Happy days in the Big D!
“Half of that total will be dispersed to the league’s non-taxpayers”
Where does the other half go?
So let’s say that five teams finish the season owing a total of $50MM in taxes. Where does that money go? Currently, the NBA splits it 50/50 — half of it is used for “league purposes,” while the other half is distributed to non-taxpaying teams in equal shares. In that scenario, the 25 non-taxpaying teams would receive $1MM apiece.
I guess it is “there”.
From Larry Coon’s CBA FAQ:
“Currently 50% of the tax revenue is used as a funding source for the revenue sharing program, and the remaining 50% is distributed to non-taxpaying teams in equal shares. “
Or from you’all…
link to hoopsrumors.com
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