NBA Talk: Income Tax and Supermax

By Henry L. Liao

It’s nearly summertime and living ain’t easy.

Luka’s trade from the Dallas Mavericks to the LA Lakers in exchange for All-Star frontliner Anthony Davis, wingman Max Christie and a first-round draft selection last February 1 has several financial repercussions.

The 26-year-old Slovenian wunderkind left a state – Dallas – with no income tax for a state – California with the highest income tax, with the state’s top income tax bracket pegged at 14.4 percent.

Luke, who lives on the second floor, also lost $117 million in potential income with his transfer to Tinseltown as he was no longer eligible to sign a supermax contract extension with Dallas this summer – an extension that would have awarded him the largest contract in NBA history at $346 million over five years.

With the Lakers, Doncic, who has a year left (2925-26) on his current pact, is only eligible for a five-year, $229 million deal.

Luka Doncic’s move to the Lakers comes with major financial consequences. [Los Angeles Lakers Instagram]
Luka Doncic’s move to the Lakers comes with major financial consequences. [Los Angeles Lakers Instagram]

Talk about saving money for the rainy days, Oklahoma City Thunder uberstar from Canada Shai Gilgeous-Alexander recently got rid of his agent and look to represent himself when he becomes eligible for a four-year, $294.3 million supermax contract extension with the NBA West-leading club this summer – a deal that will keep him in OKC through the 2030-31 NBA wars.

Gilgeous-Alexander, who currently is in the third year of a five-year, $179.3 million deal, and the Denver Nuggets’ triple-double threat Nikola Jokic are in a dogfight for the league’s Most Valuable Player award this season.

Shai Gilgeous-Alexander is set to negotiate his own supermax contract. [Shai Gilgeous-Alexander Instagram]
Shai Gilgeous-Alexander is set to negotiate his own supermax contract. [Shai Gilgeous-Alexander Instagram]

Jokic, the NBA MVP in three of the last four seasons, will also be eligible for another Supermax contract extension down the road.

Henry Liao
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