The NBA has fined Warriors owner Joe Lacob $500K for violating the league’s policy regarding publicly discussing collective bargaining talks, which are currently ongoing between the league and the Players Association, sources tell Adrian Wojnarowski of ESPN.
Lacob described the NBA’s luxury tax system as “very unfair” last week on the Point Forward podcast hosted by Andre Iguodala and Evan Turner, per Wojnarowski.
“The hardest thing of all is navigating this luxury tax, unfortunately,” Lacob said. “I went back to New York this week for labor meetings. I’m on the committee. And you know, obviously, the league wants everyone to have a chance and right now, there’s a certain element out there that believes we ‘checkbook win…’ We won because we have the most salaries on our team.
“The truth is, we’re only $40 million more than the luxury tax. Now, that’s not small but it’s not a massive number. We’re $200 million over in total because most of that is this incredible penal luxury tax. And what I consider to be unfair and I’m going to say it on this podcast and I hope it gets back to whoever is listening. Obviously, it’s self-serving for me to say this, but I think it’s a very unfair system because our team is built by….all top eight players are all drafted by this team.”
Lacob was referring to the “repeater” luxury tax penalties given to teams, like the Warriors, that have been taxpayers in three of the previous four seasons. Last season, Golden State was hit with a record $170,331,194 luxury tax payment — nearly breaking the previous league-wide record for total luxury tax payments, which was $173.3MM back in 2002/03. The seven taxpaying teams in ’21/22 shattered that record with a staggering combined total of $481,021,386.
The Warriors are projected to have a $181.3MM luxury tax bill in ’22/23, according to ESPN’s Bobby Marks, who tweets that the bill could balloon to over $200MM in ’23/24 if the team gives Andrew Wiggins and Jordan Poole extensions.
If only there was some kind of solution. Like maybe a bargaining process where Lacob could push to change it
Why do you think he’s going public with his complaints?
NBA Finals
1 ticket = $80,000
7 tickets = $560,000
‘All top 8’ apparently does not include Wiggins according to Lacob.
He was just trying to make a point. Wiggins was a stud this year and you know it and I know it and Joe Lacob knows it. But when it comes to stating his case he’s going to go with facts that work in his favor.
He mentions Wiggins in that part of the interview where he says everyone was home grown or a minimum and then mentions that Wiggins is the exemption but was thought of as the NBAs worst contract when they acquired him…
Wiggins is gone after next season. No way they can afford him unless he takes a pay cut. You know how the NBA owners are somebody will over pay him as their 3rd option player. Then you will hear their fans complain why he is not as good as he was on GSW.
It would’ve been more accurate to say they *developed* their top eight guys. The point is still the same.
You could argue that they drafted Harrison Barnes, and developed Monte Ellis, who led to Bogut, and those 2 guys being let go led to Kevin Durant, which led to Russell, which led to Wiggins, but it’s all semantics anyway. I dont get why everyone always takes every single thing so literally, and usually people miss the overall context
Using that logic, you can also say that Wilt led to Andrew Wiggins, and then argue that players on the original Warriors led to him, too. Your point and Lacob’s point completely miss addressing the role of the luxury tax, which is to make the competitive balance of the league better by not allowing a handful of teams acquire a disproportionate level of talent, by whatever method, and then allowing those teams not to have to choose which players to keep and pay. Joe Lacob knew the price, literally, of paying so many players so much salary; to whine about it now after he gladly paid for his championship by exceeding the salary cap in the manner he did is disingenuous. You want not to have to pay such a hefty price for securing your talent, Mr. Lacob? Don’t pay your players $25M (Draymond Green) to $35-40M plus to play (Klay Thompson & Steph Curry) or find cheaper teammates to play with them. You refused to make that choice and instead chose to pay the luxury tax. Clearly, in your case, the luxury tax isn’t big enough. Here’s a thought…if you and others in the league truly support competitive balance instead of giving it lip service, how about having a hard salary cap, as they do in the NFL??? We all know that league ownership, who kowtow to the stars of the league, won’t do that.
I do feel that teams that draft well and wish to retain those homegrown players deserve some sort of differential treatment with regards to how they’re taxed with regards to being over the salary cap. Some teams draft well and surround those players with a good culture while others are roster raiders. I could careless which way you do it, get it as you can, but I think a reward for good drafting and not penny pinching to retain the talent should be rewarded with less taxes being paid.
One of the posters suggested that a few weeks ago, it might have been you, and I think it’s a great idea that the minds that be could work into the system.
Silver’s all “Joe’s got money, I’ll pop him for an extra half a milly”
Seriously, what a massive fine. Half a million dollars.
Adam silver be like “oh, he don’t like me stealing his money? I’ll steal some more”
Punishes warriors for being a well run organization and drafting and developing well . Sad that this dynasty will be broken up by a luxury tax.
Before Steph got there, they had a loosing record 16 of 19 seasons. We’ll run is a new phenomenon for them btw.
The warriors were horrendous during Steve Cohen’s ownership tenure. Worst owner ever. Joe lacob and his group came in and everything changed. I will say that trusting Jerry West’s expertise and drafting Steph Curry were huge but it all starts at the top with ownership.
Chris Cohan.
Thank you. I’m too quick to click publish at times.
Trash fire in a suit. Wish I never had reason to know his name.
The league created an entirely new system specifically to screw over the Heat after they got Bosh and Lebron, lead by Dan Gilbert and Mark Cuban, who then cried about that stuff effecting them later on. It is what it is…
I do think people dont realize how hard it is to actually maneuver to have the type of cap holds where IRS even possible to be in a situation like this, while consistently winning, but doesn’t mean the rules should change. This type of thing effects teams all the time, and essentially it comes down to a choice of either you want to keep winning, figure out a way to move salary while still winning with similar type of players you dont have to pay as much, or do things to stop spending the money and potentially reset under the repeater tax
The screwing actually started with the Lakers and has just gotten worse.
How was Silver stealing from him when the luxury tax wasn’t a secret. Whether or not any of us agree with it, Lacob knew what he was getting himself into.
The league wants more parity. That’s understandable. They have workarounds but it’s going to cost you. Deal with it. If you don’t like it, trade Klay Thompson and don’t trade for Andrew Wiggins.
I respect Lacob for signing Klay to max even though he was hurt, and also for getting someone to replace KD. Thats commitment to fans and winning. That being said, Warriors do have to face the music eventually when it comes to luxury tax.
Lacob doesnt mind luxury tax too much, but he is not too happy when owners or media make too big deal of it or shortchange Warriors. After all, he only spent $40m more, and not $170m.
Yes exactly right. And isn’t it amazing they fined him half a million dollars for stating that? Wow.
Lacob got his money worth. Fans and all his players got the point that his hands are tied and he can no longer just pay whatever he wants to. It’s a great message to Poole, Wiggins, and even Klay and Green when it’s time for the next extensions.
Once again, paying taxes isn’t a problem for all of these owners, it means nothing. It impacts them zero when all is said and done, the owners have just corrupted the media to think that paying players is bad, when its just a thing. Its a part of a larger process.
Very unfair? The NBA compensation system proscribes overall player salaries, so there has to be some practical limit on per team player salaries. He’s right that the hyper-progressive luxury tax is punitive. It’s supposed to be. A team that exceeds the tax line is, in effect, directing a disproportionate of overall player salaries to their roster. The rest of the league can only take one of two positions: 1) prohibit it absolutely (hard cap at the tax line); or 2) permit it, but deter it by taxing the hell out of it. Would he prefer 1 were the rule?
That said, Silver fining him for expressing an opinion about any CBA rule is ridiculous. It’s not criticism that puts in question the integrity of the sport (criticizing officials, etc.). That has to be protected against. It only puts in question the judgement of the PTB in the NBA, including Silver. That doesn’t.
You make two excellent points. Luxury tax penalties are supposed to work that way, and a half million dollar fine is ridiculous in this case.
The only thing I could say that Adam Silver has on his mind is taking care of all 30 teams especially the little guys. The Warriors are fine, they’re run well, they’re successful, but silver has a lot more on his plate. Not defending him but that’s his MO.
Stay off the podcasts.
Why??
You just saw why.
Absolutely hate that Draymond is one of the highest IQ players in the league, but cannot see that he’s straight up giving away sauce for free in a league where even a 0.000001% advantage can mean the difference between a win or loss.
Wait til you retire before starting the media career, stop being greedy – you already have money.
His team is worth billions of dollars and Im sure he is not in the red, so cry me a river billioner
Jealousy is a sure fire sign of an inferior person.
seeing jealousy in stating facts is a sure fire sign of a wise guy wannabe
I have no problem with this, I just want to see exactly where NBA fine money actually goes, because they do not tell us.
It’s not really so much the money, but the principle behind it.
I agree with Joe, he has a valid beef. That tax is absolutely ridiculous.
The tax is ridiculous??? So which do you prefer, a hard salary cap, or no salary cap at all???
Neither. I’m saying the AMOUNT is ridiculous.
The tax NEEDS to be punitive/severe., it’s the best way to discourage teams from hoarding multiple top-tier talent.
Honestly he’s got a point. The NBA has been hyper focused on making sure talent stays on the drafting team of said talent and your reward for being good at your job is the league taking hundreds of millions of dollars from your club. Not saying a luxury tax isn’t necessary but I think some salaries should be exempt from the tax is that player was drafted by the team or at the very least has been on the team for I don’t know, 6-8 years? Glad it’s not my job to make sense of the CBA lol.
So now we’re COMPLETELY EXEMPTING $100M of salary (Draymond Green, Klay Thompson, and Steph Curry)??? And the salary cap is what, like $140M??? That’s a LOT of salary to overlook…and essentially gives them an extra $100M to acquire teammates to surround them. I don’t think that’s fair to their opponents in the league.
Don’t exempt their salaries from the cap, exempt their salaries from the tax.
Exempting salaries from the tax effectively exempts those salaries from the cap. It would work in the same manner as exemptions and deductions on your income taxes. Teams who keep players they draft would therefore have effectively a higher salary cap than other teams in the league, which would give them a competitive advantage.
Stop paying everyone as a top dog. You want to look like the owner that pays everyone, then don’t b***h about it.
Green didn’t deserve a max. You gave a max for that PG from the nets. Wiggins and poole definitely doesn’t deserve max extensions, so show some restraint. They all look good cause of steph and klay.
Green is not getting max – he’s on 4 yrs 100m.
So is there an owners union that can appeal the $500k fine?
;-)
Lacob shut up and pay
You basically need a new Bird Rights rule as it applies to drafted talent, you’d also need to stipulate that it includes draft rights that were acquired via trade bc the NBA does that nonsense.