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Why will Anthony Davis only receive 59 of the 186 million dollars from his extension?

The financial complexity of the NBA is no longer to be demonstrated and, to be convinced a little more, there is only to look at the contracts of the players. Starting with that ofAnthony Davisthe latest to be initialed.

Extended this weekend by the Lakers for 186 million dollars over three years (to which must be added its 84 million dollars already planned for 2023/24 and 2024/25), “AD” will not actually receive such a sum, since it is a question of a gross amount and not a net amount. Once the various taxes have been deducted, his salary is therefore far from being the same, and that is what details Andrew Petcash.

Anthony Davis heavily taxed in… California

The taxes in question are precisely the following: the federal income tax, the income tax specific to each State, an “Escrow Tax”, the agency commission, a “Jock Tax” and finally a “Medicare tax”.

In the case of Anthony Davis at Los Angeles, let us take as a reference salary the annual average (gross) of its 186 million dollars. Either $62 million… from which the amounts related to the various taxes listed above are therefore withdrawn.

22.9 million dollars, relating to federal income tax (37% tax rate),
8.2 million dollars, relating to the income tax of the State of California (13.3% tax rate),
6.2 million dollars, relating to the “Escrow Tax” (10%, the NBA salary deduction to adjust the sharing of income),
1.8 million dollars, relating to the commission of his agency (3%),
1.8 million dollars, relating to the “Jock Tax” (3% income tax for matches played in other states),
– And 1.4 million dollars, relating to the “Medicare Tax” (social coverage).

Which gives, on arrival, an average net annual salary of… $19.7 million for Anthony Davis. Even if this amount could then be inflated by the 6.2 million dollars linked to the famous “Escrow Tax”, redistributed the following year by the NBA (but after tax) if its financial results for the past season are good.

A state that taxes a lot

We also note that, even if the climate is more pleasant there than elsewhere, California is particularly handicapping in terms of taxation, because it is the state that taxes its inhabitants the most. Unlike Florida, Texas or Tennessee, where there is simply no income tax!

In the worst case, of the 186 million dollars promised to him when he (re-)signed his contract, Anthony Davis will therefore ultimately receive “only” 59.1 million dollars, spread over 2025/26, 2026/27 and 2027/28. Not to mention 27 of the 84 million dollars that he must also receive in 2023/24 then 2024/25, and included in his previous extension.

Anthony Davis Percentage Bounces
Season Crew GM Minimum Shots 3 points LF Off Def Early pd party Int bp CT Points
2012-13 NOP 64 29 51.6 0.0 75.1 2.6 5.6 8.2 1.0 2.5 1.2 1.4 1.8 13.5
2013-14 NOP 67 35 51.9 22.2 79.1 3.1 7.0 10.0 1.6 3.0 1.3 1.6 2.8 20.8
2014-15 NOP 68 36 53.5 8.3 80.5 2.5 7.7 10.2 2.2 2.1 1.5 1.4 2.9 24.4
2015-16 NOP 61 36 49.3 32.4 75.8 2.1 8.2 10.3 1.9 2.4 1.3 2.0 2.1 24.3
2016-17 NOP 75 36 50.5 29.9 80.2 2.3 9.5 11.8 2.1 2.2 1.3 2.4 2.2 28.0
2017-18 NOP 75 36 53.4 34.0 82.8 2.5 8.6 11.1 2.3 2.1 1.5 2.2 2.6 28.1
2018-19 NOP 56 33 51.7 33.1 79.4 3.1 8.9 12.0 3.9 2.4 1.6 2.0 2.4 25.9
2019-20 ALL 62 34 50.3 33.0 84.6 2.3 7.0 9.3 3.2 2.5 1.5 2.5 2.3 26.1
2020-21 ALL 36 32 49.1 26.0 73.8 1.7 6.2 7.9 3.1 1.7 1.3 2.1 1.6 21.8
2021-22 ALL 40 35 53.2 18.6 71.3 2.7 7.2 9.9 3.1 2.4 1.2 2.1 2.3 23.2
2022-23 ALL 56 34 56.3 25.7 78.4 3.5 9.1 12.5 2.6 2.6 1.1 2.2 2.0 25.9
Total 660 34 51.9 30.0 79.3 2.6 7.8 10.4 2.4 2.4 1.3 2.0 2.3 24.0

How to read the stats? MJ = matches played; Min = Minutes; Shots = Shots made / Shots attempted; 3pts = 3-points / 3-points attempted; LF = free throws made / free throws attempted; Off = offensive rebound; Def= defensive rebound; Tot = Total bounces; Pd = assists; Fte: Personal fouls; Int = Intercepts; Bp = Lost bullets; Ct: Counters; Points = Points.

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