The 2021/22 NBA season was 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 nearly matched that league-wide record. And they were joined by six other taxpayers whose combined end-of-season bills shattered the previous record even without Golden State’s help.
Here’s the complete breakdown of the seven taxpaying teams, courtesy of Eric Pincus of SportsBusinessClassroom.com:
- Golden State Warriors: $170,331,194
- Brooklyn Nets: $97,711,261
- Los Angeles Clippers: $83,114,692
- Milwaukee Bucks: $52,037,160
- Los Angeles Lakers: $45,117,195
- Utah Jazz: $18,833,260
- Philadelphia 76ers: $13,876,624
All told, the seven teams paid a staggering combined total of $481,021,386.
Half of that total will be dispersed to the league’s non-taxpayers, which means that 23 teams will receive $10,456,987 each. The league will get the remaining $240,510,693 to help fund its revenue sharing program, says Pincus.
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 one of the 23 teams that will receive a $10MM+ windfall.
Having said that, the Celtics gladly would have paid the tax penalty had they won the championship — Jaylen Brown would have received a bonus in that scenario, which would have pushed them over the line.
It’s worth noting that the Warriors are the only one of these seven taxpayers who were subject to “repeater” penalties this season, so it’s not as if those more punitive repeater penalties fueled this year’s record-setting totals. Even without the repeater penalties, the Dubs would have owed approximately $131MM in taxes.
The majority of these teams project to be taxpayers again in 2022/23.
Also worth noting the Warriors have the 25th-wealthiest ownership in the league.
what does that matter?
It means stop complaining. Your owner is cheap.
A’sfaninLexington, why is that worth noting? If the Warriors owners are billionaires, it doesn’t matter if they rank low.
Owners that are wealthier have more businesses to run and different responsibilities aside from their basketball team. You can’t just transfer money from these other businesses to the basketball franchise.
Makes no difference where they’re ranked, they’re all billionaires.
But of course you can’t read this because you’ve muted me because you can’t stand having questions asked regarding your flawed thinking and reason. You can’t face a challenge of any kind, nor give a reason or defense of your statements.
Yup, ownerships usually have diversified businesses, which might explain why some are hesitant to wade into spending big and the corresponding taxes ……… some other factors as well, e.g. market, business climate, etc.
However, surely you’d seen that @Asfanin pointing out Lacob’s lowness was not a knock on Lacob, but to the other ownerships e.g. Lacob being low on the Forbes rankings yet willing to spend and wade into tax territories for this team.
Oh yes absolutely mike.
A’sfan was aiming for pity, not knocking Lacob. He does that.
I think what’s going on with the Warriors is that they are sinking franchise Revenue back into the team. Where the owners are benefiting is the appreciation in value of the team.
I think I read somewhere, please don’t hold me to this, that the Warriors make $500 million a year? So it makes sense they can afford to pay out $400 million in salaries. Net 100 million after all the expenses and Revenue is not too shabby.
But the big payday for Joe lacob and his partners is that they bought the team 10 years ago for $450 million, yet now it’s worth 4.5 billion.
It’s all going to work out nicely when they decide to sell and accept the money with the hand held out that has 4 or more rings on it.
Wow 170k. Nice work GS, way to buy that Championship.
I kid.
Lakers took a bath. The other taxpayers had playoff revenue.
Why would anyone be butt hurt over his comments? It’s Math. He also publicly states he’ll spend whatever to win another. Money where his mouth is.
At the end of the day bussiness Is bussiness.