What are the Celtics projected to spend in taxes?
With the extensions of Tatum, White, and Jrue in place over the past couple of months and Porzingis + Brown on the books, people have been talking about the Celtics tax bill for next year, (when Tatum + White's new contract kick in).
Here is a breakdown of what the tax looks like for the Celtics next year courtesy of u/dangercart
- Celtics are slotted to pay 253 million in taxes for next year.
However, if you notice, that's only for 9 players and it doesn't include a potential Sam Hauser extension, which Sam and the Celtics are reported to have had interest in.
At about 40mil over the tax in a repeater year in the new CBA, the Celtics will add about 10 mil in taxes for every 1mil they add to their roster. This means that even adding 5 vet min guys to fill out the roster would add over 100mil to that 250mil tax bill.
If you added Sam Hauser's extension and only 4 vet min guys, we are talking potentially…
Over 400 mil in taxes with 250ish mil in salary for a total of 650ish mil in salary + tax
Comparing to Warriors and Clippers
Now, the 2 most expensive teams in NBA history have been the Warriors and Clippers. Last year, the Warriors paid 176mil in taxes.
Clippers have paid a TOTAL OF 400 MIL IN TAXES OVER THEIR ENTIRE HISTORY
Warriors have paid a TOTAL OF 678 MIL IN TAXES OVER THEIR ENTIRE HISTORY
Conclusion
Celtics aren't just slated to pay the biggest tax in NBA history. They are projected to potentially double the Warriors at their peak AND match what the Clippers have spent in their entire history.
by SquimJim
33 Comments
What happens if a team fails to pay the luxury tax? What exactly is the punishment?
Fuck Iâd sell the team too
Kinda wonder how much and in what ways these decisions were impacted by the potential sale they knew was coming up.
On one hand you donât want to try and sell with a worse off team on the other hand paying hundreds of millions in taxes PER YEAR will make even billionaire do a double take
H&R block got this
When vet mins start costing $20m/yr you start to rethink things damn
Well now I get why the owners are selling. That bill is kinda crazy.
Remember the media rights deal went up while ratings went down because of new interest in sports streaming? It might be priced into the Celtics spreadsheets already.
revenues:
|Ranking|Team|2022-2023 Season Revenue|
|:-|:-|:-|
|4|Boston Celtics|**$443M**|
I feel like I finally understand how Yankees fans feel.
Mainly, I don’t really give a fuck, it’s not my money and my team won the title and kept the core together.
Bring on the Saudis!
And it actually doesnât have anything to do with the second apron, itâs because the repeater tax is fucking *brutal* in the new CBA
That tax alone should win championships, anything less is a lose.
As a Warriors fan it’s nice to be out of the taxpayer jail spotlight. Enjoy, Celtics fans!
Definitely they have to move some pieces to be under the apron. The contracts they gave out are crazy asf and I can see one year of this squad being together. Porzingis might be the first victim
I think this is why theyâre selling.
The warriors paid almost $700m in tax over the past decade. Franchise appreciation is nice and all, but the cost of keeping this team together is about to get exorbitant. The Boston owners are probably thinking this will be near the apex of franchise value, and are looking to saddle an eager new owner with the cost of keeping it together.
Atleast celtics got one ring in the window. Theyâve been contending for a while so no surprise their window is getting closed now. I think they tear it apart next season.
Can someone confirm? I always thought vet min contracts did not touch the cap and therefore do not touch the repeater tax
People are ignoring the fact that Celtics have a lot of easily tradeable contracts. One or more of Jrue, Porzingis, Derrick White, Pritchard, Hauser can be moved next year if they need to balance their books.
Second Round pick salaries are below the Vet Minimum, right? Hence why so many teams are stockpiling 2ndâs.
Oh no, it will cost them a lot of money to effectively run back the championship team. What a tragedy.Â
You’ll have to excuse me if I don’t sympathize, given my flair.
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Now I see why the owners are looking to sell lol
It will be very very funny …..if no one bids on the team for the next 3-4 years.
If your Wyc, this makes sense, NBA is on the cusp of their new TV deal, winning team, just off a championship … this would be the pinnacle of what the value of the team might be
but
RSN’s are going bankrupt, TV overall is continuing to shift with Turner needing to drop out of the NBA rights due to cost , and whoever buys the team might be locked into 2B+ of luxury tax payments over the next 3-4 years where Horford, Porzingus, Holiday are all getting older and or injuries taking their toll where the team while likely being good will also likely fall off in the next few short years
I don’t think other potential owners will be so gullible to take the hot mess that Wyc has got himself into as he thinks they will be
The Saudis should have bought the Celtics instead of creating the LIV tour.Â
As long as the banners keep coming the owners won’t care. Especially if the rumors about building a new arena are true
I think it’s pretty clear that these guys aren’t playing out their extensions here outside of Tatum/Brown
The benefit though is that if the cap increases, then these extensions will be good value for other teams by the time they have to move them.
When we are talking about half a billion dollars just down the drain for luxury taxes even the rich owners will cut some of their spending. damn
Yup. I said that team has 1 year together before they’re forced to tear it down
Did Dejounte Murray write the title of this post?
The current team will not be together a year from now. They get this season to run everything back and go for b2b titles.
Easy to win titles when you do thus. Go Mavs
The Celtics are going to force the NBA to either make a 3rd apron or a Hard Cap when the next CBA deal comes around lol
Basically if they can’t win again next season, things will probably be split up a bit I feel.
The biggest issue u see with the Celtics in the future is if they decide to trade guys out to save money towards tax bill, they wonât be able to really go out and sign replacements as they will obviously still be over the cap. And itâll be difficult to make trades because they will be a 2nd apron team for foreseeable future. They will need to draft replacement level players well to keep it going, but realistically they could win the next two titles since I donât see them doing anything.