Anthony Davis and the Los Angeles Lakers agreed to a 3-year contract extension on Friday, which qualified as the richest annual extension in NBA history. The $186 million deal ties him to the franchise through 2028, and will bring his total earnings from the team to $270 million. The extension will pay Davis $62 million per season when it kicks in.
NBA Players React To Anthony Davis Contract Taxes
Anthony Davis just signed the NBA’s richest annual extension (3 years $186 million).
And the 𝘵𝘢𝘹𝘦𝘴 will be steep playing in LA: 🥴
$62M: Salary
–
$22.9M: Federal Tax
$6M: NBA Escrow
$4.1M: Cali Tax
$1.8M: Agent Fee
$1.8M: Jock Tax
$1.4M: FICA/Medicare
=
$24M: Net Income pic.twitter.com/JhjrGjNWhC— Andrew Petcash (@AndrewPetcash) August 5, 2023
So while we can envision Davis laughing all the way to the bank, the reality of the situation is marred by taxes, especially in the state of California.
Federal income tax will shave $22.9 million annually off of the $62 million, and that is just the start. There is a $6 million NBA escrow charge, he pays FICA and Medicare like the rest of us, and there is a $1.8 million “jock tax”. That is all on top of the California tax and his agent fees.
So while it may look like he just became one of the richest players in the league, Davis winds up taking home less than half of that $62 million. According to Andrew Petcash on Twitter, the total that Anthony Davis takes home annually is $24 million.
Giannis Will Be In Line For Massive Deal
It seems that some current NBA players are as surprised to hear about the ridiculous percentage of Davis’ money that will be taxed, including Giannis Antetokounmpo.
Who the hell is FICA and Jock can they hoop? https://t.co/2p72jRkpND
— Giannis Antetokounmpo (@Giannis_An34) August 5, 2023
Antetokounmpo will likely get his own taste of the taxation when he signs his mega deal within the next couple of years. The income laws are obviously different from California and Wisconsin, but Giannis will sign the richest deal in league history when he is eligible, and his bottom line will feel the effects, too.
Sacramento Kings guard De’Aaron Fox chimed in too:
We get taxed in every city/state that we play in. So for example we play 41 home games plus 4 in LA and 2 in SF so 47 games taxed in California 🙃 Those 4 teams obviously get it the worst lol https://t.co/CSWEIGg3LE
— De’Aaron Fox (@swipathefox) August 5, 2023
Davis has struggled with health and remaining on the floor, but the Lakers are hoping that things will change in that respect. LeBron James is entering the twilight years of his career, and the front office is banking on Davis being his running mate and taking some of the load off of the aging body.
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