Tyrese Haliburton is the future of the Indiana Pacers, the franchise is banking on the All-Star to become a superstar and the contract they have given him has made that evident.
According to reports, Haliburton signed a 5-year extension with the Pacers worth up to $260 million. However, that is the maximum money he can get, the base of the deal is about $207 million. And even from that, he might lose quite a bit in taxes and fees.
“Tyrese Haliburton just signed a 5-year $207M contract extension with the Pacers. Here’s how much he will earn:
$41.4M: Salary
$15.3M: Federal Tax
$4.1M: NBA Escrow
$1.2M: Agent Fee
$971k: FICA/Medicare
$690k: Jock Tax
$652k: Indiana Tax
= $17.7M: Net Income.”
𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭:
Tyrese Haliburton inked a 5-year rookie max extension starting at $207 million (or 25% of the salary cap).
Can reach $260 million (30% of cap) if he hits the agreed upon milestones. pic.twitter.com/597OkJ3zy3
— Andrew Petcash (@AndrewPetcash) July 2, 2023
That sounds like surprisingly little considering the overall amount of the contract he has signed, but there is an additional $53 million in incentives he can unlock if he meets all the parameters of the agreement. That too will be taxed, but his earnings should average out to just over $20 million in hand per year.
NBA players signing massive contracts makes them objects of jealousy for a lot of regular folks, but there is a lot more to it than meets the eye. Haliburton will still earn well over $100 million over the next 5 seasons, at which point he will be 29 and likely in the running to sign another massive contract.
What Is NBA Escrow That Is Taking $4.1 Million Out Of Tyrese Haliburton’s Salary?
There is one aspect of this division that could still see Haliburton get the money back, though. NBA escrow money is withheld till the end of the season, upon which players receive it if the amount of the collective bargain is not reached. So Haliburton could still make more than has been stated above. This was a big part of the recently signed new CBA and it’s easy to see how it is affecting the players now.
Making massive money in the NBA is a given for superstars, this is a lot more than the legendary players of yesteryear made. But things aren’t as straightforward as they seem either. Shaquille O’Neal once explained how he didn’t account for tax when spending his money once and it cost him. Players need to be careful and ensure that they spend wisely knowing how much they get in hand. Otherwise, the biggest fortunes can end up disappearing.
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