5 NBA teams facing over $30 million in luxury taxes heading into 2024 offseason ft. Warriors
As the 2024 NBA season ended, ESPN’s Bobby Marks revealed the luxury tax payments for teams that exceeded the salary cap, with the top two teams facing tax bills higher than the salary cap itself.
The salary cap for the 2023-24 season is set at $136 million, which is the maximum amount each team can spend on its roster without facing penalties. Teams that spend below this cap create cap room to sign free agents.
Teams that go over the salary cap are subject to a luxury tax. For the 2023-24 season, the luxury tax threshold is $165 million. Teams that exceed this limit incur financial penalties, which are distributed to non-taxpaying teams at the end of the year.
Exceeding the luxury tax line brings teams closer to the tax aprons, triggering additional penalties and restrictions. The first apron is set at $172 million, while the second apron is $182.5 million.
Here are the five NBA teams with the highest luxury tax bills.
(All total cap allocation figures extracted from Spotrac)
5 NBA teams with the highest luxury tax bills
#5, Boston Celtics ($43.8M)
This year’s NBA champions, the Boston Celtics, have the fifth-highest luxury tax bill at $43.8 million. The Celtics had a total cap allocation of $188,759,360.This proved to be a wise investment as the Celtics built a deep roster that won the NBA Finals.
#4, Milwaukee Bucks ($52.5M)
The Milwaukee Bucks, who experienced a first-round exit for the second consecutive year, are set to pay a $52.5 million luxury tax bill.Their total cap allocation is $188,285,708, largely due to the supermax contracts of Damian Lillard and Giannis Antetokounmpo.
#3, Phoenix Suns ($68.2M)
The Phoenix Suns also faced a first-round exit despite their big three of Kevin Durant, Devin Booker and Bradley Beal.
They had a total cap allocation of $195,152,804, the fourth highest in the league, resulting in a $68.2 million luxury tax bill.
#2, LA Clippers ($142.4M)
The LA Clippers, another team with a first-round exit, have a luxury tax bill of $142.4 million, $6.4 million more than the $136 million salary cap.
Their roster includes seven players with salaries over $10 million, led by Paul George and Kawhi Leonard who each made $45 million, for a total cap allocation of $202,080,521.
#1, Golden State Warriors ($176.9M)
The Golden State Warriors missed the playoffs but face a luxury tax bill of $176.9 million. They have five players making over $20 million, with Steph Curry the highest at nearly $52 million.The Warriors are expected to undergo a roster overhaul with Klay Thompson entering free agency and decisions pending on Chris Paul and Kevon Looney.