How much do LA Clippers need to pay in luxury tax payments after acquiring Russell Westbrook? A closer look at their finances
Russell Westbrook has decided to sign a contract with the LA Clippers. The veteran point guard started the 2022-23 season in Los Angeles, but played for the Lakers.
Westbrook was eventually traded to the Utah Jazz, who had no interest in keeping him. The Jazz wanted to play their young players more, while the former MVP wanted to be on a contender. Due to this, the two sides reached a buyout agreement, allowing Westbrook to sign with the Clippers.
While the Clippers will improve with the addition of the 9-time All-Star, this will come at a cost. Besides playing Westbrook's salary, Steve Ballmer will also have to pay an increased luxury tax.
The LA Clippers have the second-largest luxury tax bill after acquiring Russell Westbrook
The LA Clippers have the largest active payroll in the 2022-23 NBA season. Paul George and Kawhi Leonard are paid $42.5 million each and are on maximum contracts, taking around 70% of the salary cap by the team.
Before the acquisition of Russell Westbrook, the Clippers had 14 players on their roster with a total payroll of around $190.7 million. Considering that the luxury tax threshold is at $150.3 this season, they were more than $40 million above it.
The Clippers will sign Westbrook to a prorated minimum contract. Considering that the point guard is in his 15th season in the league, he is eligible to receive up to $2.7 million from the Clippers.
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However, there are less than two months left until the end of the regular season, which is why the former MVP will receive less than $800,000 from his new contract in Los Angeles.
At the time of the buyout, Westbrook had $13.2M left on his contract.
He will sign for the prorated veteran minimum ($784,914 if signed on Wednesday).
The Clippers have added since the trade deadline:
Eric Gordon, Bones Hyland, Mason Plumlee and now Westbrook. twitter.com/wojespn/status…
With the addition of Westbrook, the Clippers' total payroll will increase to around $191.5 million, meaning they will be $41.2 million above the luxury tax threshold. Due to this, Steve Ballmer will have to cash out around $142 million for the luxury tax alone.
How much do the LA Clippers cost?
With a luxury tax bill of around $142 million and a player payroll of $191 million, the LA Clippers cost more than $333 million in the 2022-23 season.
To make things worse, this is the third straight season that the Clippers have been above the luxury tax threshold. Due to this, they will be hit with a repeater tax next season, which will drastically increase their luxury tax bill.
To put things into perspective, if the Clippers were hit with a repeater tax this season, they would be paying more than $183 million in luxury tax after the acquisition of Russell Westbrook.
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The Clippers are currently 33-28, good enough for fourth place in the Western Conference. With a healthy roster and Westbrook, they can have a deep playoff run.