When a team is in luxury tax, it generally means that they have a lot of money tied up in contracts on their roster. Generally, that means that a team is in a good position and is a solid playoff team/contender.
A post by Reddit user redditsuomi123 shared the amount of luxury tax that each team paid over the course of 2021. The Golden State Warriors and the Brooklyn Nets led the league in luxury tax payments, totaling $268 million in luxury tax, more than the rest of the league combined:
Tax bills (Amounts in millions):
Warriors: 170
Nets: 98
Clippers:83
Bucks:59
Lakers:45
Jazz:19
Sixers:14
Rest of the league were at zero
You could pay the whole Grizzlies roster and still have 55 million left with the Warriors tax bill. I think we’ll see the most insane tax bill ever if the warriors give Jordan Poole a big contract.
The Golden State Warriors and the Brooklyn Nets are both teams with multiple max contracts on their rosters, committed to multiple stars. However, the story for both teams was quite different this year. The Golden State Warriors are currently playing in the NBA Finals, while the Brooklyn Nets became the only team to get swept in the playoffs this year.
The Golden State Warriors could potentially have to pay more in luxury tax if they re-sign Jordan Poole during the summer of 2023. Their big 4 of Stephen Curry, Draymond Green, Klay Thompson, and Andrew Wiggins already take up $150 million in contracts, and there’s no doubt that if one adds Poole’s potential big contract would add even more to their hefty luxury tax bill.
Paying the luxury tax has clearly paid off for the Golden State Warriors, and we’ll see if it pays off for the Brooklyn Nets next season. A team that has Kevin Durant, Kyrie Irving (who plans to re-sign), and Ben Simmons under contract should be a contender based on the talent alone, especially if they develop chemistry during the regular season.
If the largest luxury tax payments were all that mattered, then we’d likely see a Brooklyn Nets – Golden State Warriors Finals this season. That didn’t happen, but perhaps we’ll end up seeing the two match up on the highest stage in the future.
