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]

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]

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

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Henry Liao

Columnist at Sports Bytes PH

Henry has been into NBA chronicling since 1968 during his younger days at Xavier. He spent his grade school and high school years (1962-72) at Xavier School and then attended De La Salle Taft in college.