The NBA and the players’ union have already come to terms on the amended CBA for the upcoming 2020-21 season. Brian Windhorst of ESPN suggests the Golden State Warriors will benefit significantly from the agreements and other teams are not happy about about these developments.
The salary cap next year will be pegged at $109.1 million, and the luxury tax will be $132.6 million, both of which are the same numbers from the 2019-20 season. This comes despite the league taking a massive financial hit due to the global COVID-19 pandemic.
Golden State stands to benefit from the changes on the luxury tax calculations for this upcoming campaign. Per Tim Bontempts and Adrian Wojnarowski of ESPN, the league has decided to decrease the luxury tax bill by the percentage that the league’s Basketball Related Income drops from initial projections.
For example, if it drops from a projected $8.45 billion to $5.9 billion — a 30% decline — the Golden State Warriors’ projected luxury tax bill would be reduced from $60 million to $42 million.
Furthermore, they added the changes could have an impact on if Golden State uses the $17.2 million traded player exception from the Andre Iguodala deal. In their example, they project that the Dubs’ tax bill could reduce to three times less than they would pay under normal circumstances.
This is certainly a huge development for Golden State. The Warriors were reportedly previously reluctant on using the TPE unless they were getting a “special opportunity.” Perhaps they will be willing to expand their choices given the significantly less luxury tax amount they would need to pay.
Many project the Warriors to return to championship contention with a healthy and rejuvenated core of Stephen Curry, Klay Thompson, and Draymond Green coming back. With all these breaks going their way, the golden dynasty could very well revive next season.
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