2023-24 Salary Cap Currently Projected $134M ($1M Higher then Expected)

[Knightro]

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Magic are going to have a huge amount of cap space next summer.

[Skybox]

Read on Twitter

Magic are going to have a huge amount of cap space next summer.

Then, the goal for this year is to show some young scoring guard FA that there is a role in ORL for him to make a big splash. To develop the best young frontcourt in the East and to sort out our existing Guards to whatever degree is possible (who are the NBA players among Suggs, Fultz, Cole?)

[pepe1991]

This also means half of the league will have money. WItch also means that most mediocre players possible will ink $20M a year deals.

[jonbob17]

That should put the highest payrolls north of $200M

I think deals like Harris and Bamba's should give the Magic the flexibility to start planning out their cap. Both were Bird rights with a team option. Magic need to figure out how and when to maximize their payroll.

Assuming the young guys develop I think the Magic are in a really savvy place to be a contender in a couple/few years

[drsd]

Orlando's management of contracts really sets this team up for future successes.

[Magic#1]

Depending on what we get in the draft in '23, I expect us to make a run at somebody. Josh Hart or Poole make a lot of sense right now. Both would cost a pretty penny if they continue to develop, but if you add them and our other young guys keep developing, we would not be a fun team to play against.

[MasterGMer]

Now with the salary cap 10M higher next season, Goldens State seems capable of keeping Andrew Wiggins and Jordan Poole plus Draymond.

I am not too optimistic on Poole, but there is definitely a chance

[Knightro]

Now with the salary cap 10M higher next season, Goldens State seems capable of keeping Andrew Wiggins and Jordan Poole plus Draymond.

I am not too optimistic on Poole, but there is definitely a chance

I mean Golden State has full Bird Rights on both guys. So they can keep them both if they want to.

It all comes down to how much luxury tax they're willing to pay.

If Draymond opts in, they're at $162M in committed salaries on just 10 guys. The luxury tax is going to be $162M. If Draymond opts out and signs a new deal for even more money, they'll already be in the tax before anything even happens with Wiggins or Poole.

Resigning Wiggins and Poole as a repeat tax offender, you're talking about over $200M dollars in luxury tax on top of a $225+ million dollar payroll.

Are they willing to shell out over $425M for their 2023-2024 roster?

They paid out about $175M in payroll and $170M in tax payments - $345M total this past year.

This year they're projected to have a $196M in payroll and another 176M in tax - $372M total this year coming up.

Will they increase that number by another $50-60M to retain all of Draymond, Wiggins and Poole?

Forbes projected the Warriors operating revenue last year was negative $44M. It's gonna be negative again this year. Will they allow it to go even deeper into the negative? Maybe, maybe not.

[drsd]

Now with the salary cap 10M higher next season, Goldens State seems capable of keeping Andrew Wiggins and Jordan Poole plus Draymond.

I am not too optimistic on Poole, but there is definitely a chance

I mean Golden State has full Bird Rights on both guys. So they can keep them both if they want to.

It all comes down to how much luxury tax they're willing to pay.

If Draymond opts in, they're at $162M in committed salaries on just 10 guys. The luxury tax is going to be $162M. If Draymond opts out and signs a new deal for even more money, they'll already be in the tax before anything even happens with Wiggins or Poole.

Resigning Wiggins and Poole as a repeat tax offender, you're talking about over $200M dollars in luxury tax on top of a $225+ million dollar payroll.

Are they willing to shell out over $425M for their 2023-2024 roster?

They paid out about $175M in payroll and $170M in tax payments - $345M total this past year.

This year they're projected to have a $196M in payroll and another 176M in tax - $372M total this year coming up.

Will they increase that number by another $50-60M to retain all of Draymond, Wiggins and Poole?

Forbes projected the Warriors operating revenue last year was negative $44M. It's gonna be negative again this year. Will they allow it to go even deeper into the negative? Maybe, maybe not.

It is a bit of BS to say the Warriors "lost" 44M last year.

Bottom of image is clipped, which is the valuation at each year.
Warriors bought at 2010 for 450M
Worth 1.3B in 2015
2.6B in 2017
3.1B in 2018
5.6B in 2022

That is a 1000% increase in value over only 12 years. "Winning" is worth more than any effect on salary costs. The real issue is what happens when the Warriors have 5 max guys and start losing games. that will be an OUCH. And the team is almost at that point.

[pepe1991]

I'm just calling b******* on that Warriors revenue & notion of losing money. Even if they pay luxury tax.

According to Vivid Seats, a ticket resale marketplace, Game 1 of the Finals (9 p.m. ET on ABC) has the most expensive average ticket price for any event at Chase Center since its opening in 2019.

The current average price sold for the first game of the series is $873, which is over $300 more per ticket than when the Los Angeles Lakers visited the Warriors in February -- and these Finals tickets are $300 more expensive than a Metallica concert, played in September 2019, that had an average price of $542.

So Warriors, only in nba finals, made over 3 home games, $47 000 000.


Given they played 22 playoff games, around 11 at home, and let's even lower that average ticket sale to $500 a game, and all games were sold out, just from ticket sale in playoffs they made at least $100 000 000.


In general thoses pro teams revenue data is complete joke. FC Barcelona was allegedlly " dead" with 1,35 billion euros dubt, but in matter of one summer they receovered whole dubt and spent €800 M in offseason. How ? Well, they sold some rights . They got half of a billion dollar contract from Spotify.
Once you start tracking nba sponsors, especially team sponsors, you will very soon figure most of their contracts aren't really aveliable to public.
Warriors alone have sponsorship deals with: Rakuten, United Airlines, Ticketmaster, Verizon, Pepsi, NBC sports among others. How much money and how many years it's not really official information in most cases.
it's something to be said about their arena tho.

Warriors got property for new arena. They bought land from Marc Benioff ( for amount of money that isn't aveliable to fans & public) ,who happends to be guy who's net worth is near 7 billion dollars.

And that kind a explains whole " how they can pay it" angle. it's private league and you are only fed with portion of information about their economy. How Barcelona can pay Pique €1M a week? Nobody knows. But they do.

Bottom line, if Warriors belive they can win championship with that roster, they will keep that roster. Don't worry about money, not a single nba owner isn't in business of losing money.
IF teams aren't super profitable, everybody would be leaving & salary cap would be shrinking. Why it's not happening? Because business is booming, markets like China are basially unlimited source of money and all it takes is one asian boy band & smart marketing to turn 17 ppg player into allstar ( Wiggins).

[Knightro]

I'm just calling b******* on that Warriors revenue & notion of losing money. Even if they pay luxury tax.

According to Vivid Seats, a ticket resale marketplace, Game 1 of the Finals (9 p.m. ET on ABC) has the most expensive average ticket price for any event at Chase Center since its opening in 2019.

The current average price sold for the first game of the series is $873, which is over $300 more per ticket than when the Los Angeles Lakers visited the Warriors in February -- and these Finals tickets are $300 more expensive than a Metallica concert, played in September 2019, that had an average price of $542.

So Warriors, only in nba finals, made over 3 home games, $47 000 000.

Given they played 22 playoff games, around 11 at home, and let's even lower that average ticket sale to $500 a game, and all games were sold out, just from ticket sale in playoffs they made at least $100 000 000.

In general thoses pro teams revenue data is complete joke. FC Barcelona was allegedlly " dead" with 1,35 billion euros dubt, but in matter of one summer they receovered whole dubt and spent €800 M in offseason. How ? Well, they sold some rights . They got half of a billion dollar contract from Spotify.
Once you start tracking nba sponsors, especially team sponsors, you will very soon figure most of their contracts aren't really aveliable to public.
Warriors alone have sponsorship deals with: Rakuten, United Airlines, Ticketmaster, Verizon, Pepsi, NBC sports among others. How much money and how many years it's not really official information in most cases.
it's something to be said about their arena tho.

Warriors got property for new arena. They bought land from Marc Benioff ( for amount of money that isn't aveliable to fans & public) ,who happends to be guy who's net worth is near 7 billion dollars.

And that kind a explains whole " how they can pay it" angle. it's private league and you are only fed with portion of information about their economy. How Barcelona can pay Pique €1M a week? Nobody knows. But they do.

Bottom line, if Warriors belive they can win championship with that roster, they will keep that roster. Don't worry about money, not a single nba owner isn't in business of losing money.
IF teams aren't super profitable, everybody would be leaving & salary cap would be shrinking. Why it's not happening? Because business is booming, markets like China are basially unlimited source of money and all it takes is one asian boy band & smart marketing to turn 17 ppg player into allstar ( Wiggins).

You do understand how a resale ticket market works, right?

If you don't, just know that citing "average ticket price" on the resale market is going to give you wildly inaccurate numbers because the Warriors don't actually get any of that money off the resale market.

All those playoff tickets have a set price that the Warriors sell them for, then people who bought them immediately go and resell them for significant profit. That extra money doesn't go to the Warriors, it goes to the person selling them privately.

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So here you go. One of the most plugged in Warriors sources there is saying the Warriors cleared approximately $30M from their NBA finals run last year. Still a very big number, but far less than the $100M you threw out there.

And doing the simple math, being $70M dollars off on a projection is the difference between a negative $44M operating revenue and a $34M operating revenue, ya know?

What we do know with 100% certainty is that the Warriors payroll was $175.1M and their luxury tax bill was $170.3M last year. That's $345.4M in money they paid out before we factor in any other outgoing costs.

And you're right. Almost every single NBA team is extremely profitable because none of them outside of the Clippers, Nets and Warriors are paying the equivalent of a second payroll just in luxury tax.

Give you an example....

Orlando is set to pay out $123M in salary this year.

Golden State is going to end up paying out over $350M combined in salary and tax.

The Warriors obviously generate much more revenue than the Magic, but it's silly to think they're generating $227M more dollars per year than the Magic do. There's just no way that is the case even with the Warriors generating $30M in playoff net revenue and the Magic generating $0. Some of that $30M gap is offset by the fact the Magic are going to get a check this year for about $15M from the NBA as payment from the luxury tax payers too.

[pepe1991]

I'm just calling b******* on that Warriors revenue & notion of losing money. Even if they pay luxury tax.

According to Vivid Seats, a ticket resale marketplace, Game 1 of the Finals (9 p.m. ET on ABC) has the most expensive average ticket price for any event at Chase Center since its opening in 2019.

The current average price sold for the first game of the series is $873, which is over $300 more per ticket than when the Los Angeles Lakers visited the Warriors in February -- and these Finals tickets are $300 more expensive than a Metallica concert, played in September 2019, that had an average price of $542.

So Warriors, only in nba finals, made over 3 home games, $47 000 000.

Given they played 22 playoff games, around 11 at home, and let's even lower that average ticket sale to $500 a game, and all games were sold out, just from ticket sale in playoffs they made at least $100 000 000.

In general thoses pro teams revenue data is complete joke. FC Barcelona was allegedlly " dead" with 1,35 billion euros dubt, but in matter of one summer they receovered whole dubt and spent €800 M in offseason. How ? Well, they sold some rights . They got half of a billion dollar contract from Spotify.
Once you start tracking nba sponsors, especially team sponsors, you will very soon figure most of their contracts aren't really aveliable to public.
Warriors alone have sponsorship deals with: Rakuten, United Airlines, Ticketmaster, Verizon, Pepsi, NBC sports among others. How much money and how many years it's not really official information in most cases.
it's something to be said about their arena tho.

Warriors got property for new arena. They bought land from Marc Benioff ( for amount of money that isn't aveliable to fans & public) ,who happends to be guy who's net worth is near 7 billion dollars.

And that kind a explains whole " how they can pay it" angle. it's private league and you are only fed with portion of information about their economy. How Barcelona can pay Pique €1M a week? Nobody knows. But they do.

Bottom line, if Warriors belive they can win championship with that roster, they will keep that roster. Don't worry about money, not a single nba owner isn't in business of losing money.
IF teams aren't super profitable, everybody would be leaving & salary cap would be shrinking. Why it's not happening? Because business is booming, markets like China are basially unlimited source of money and all it takes is one asian boy band & smart marketing to turn 17 ppg player into allstar ( Wiggins).

You do understand how a resale ticket market works, right?

If you don't, just know that citing "average ticket price" on the resale market is going to give you wildly inaccurate numbers because the Warriors don't actually get any of that money off the resale market.

All those playoff tickets have a set price that the Warriors sell them for, then people who bought them immediately go and resell them for significant profit. That extra money doesn't go to the Warriors, it goes to the person selling them privately.

Read on Twitter

So here you go. One of the most plugged in Warriors sources there is saying the Warriors cleared approximately $30M from their NBA finals run last year. Still a very big number, but far less than the $100M you threw out there.

And doing the simple math, being $70M dollars off on a projection is the difference between a negative $44M operating revenue and a $34M operating revenue, ya know?

What we do know with 100% certainty is that the Warriors payroll was $175.1M and their luxury tax bill was $170.3M last year. That's $345.4M in money they paid out before we factor in any other outgoing costs.

And you're right. Almost every single NBA team is extremely profitable because none of them outside of the Clippers, Nets and Warriors are paying the equivalent of a second payroll just in luxury tax.

Give you an example....

Orlando is set to pay out $123M in salary this year.

Golden State is going to end up paying out over $350M combined in salary and tax.

The Warriors obviously generate much more revenue than the Magic, but it's silly to think they're generating $227M more dollars per year than the Magic do. There's just no way that is the case even with the Warriors generating $30M in playoff net revenue and the Magic generating $0. Some of that $30M gap is offset by the fact the Magic are going to get a check this year for about $15M from the NBA as payment from the luxury tax payers too.

I do not know exect percentages of "cut" in ticket sale, but it's reported from multiple sources that Warriors revenue for last year was over 700 000 00 $.
I highly doubt that team with that amount of money, works in minus.

And still, paying luxury + salary still sounds like nothing major for biggest sports team. I know it's not same sport but it's worth noting that almost all best soccer teams revenue is over $800 000 000. Therfore i highly doubt $700 M revenue for Warriors is fabricated info.

[Skybox]

It's true that everyone will have cap space...the whole point of this season is to create an attractive situation for a young scorer to want to be here. Markets aren't necessarily "bad" but situations are. Some of the smaller markets have lifestyle, weather, or tax disadvantages but ORL is not among them, IMO. Nightclubs aren't everything to everybody. The team situation - to be part of a developing situation with good young unselfish players, a dynamic young "players coach", no state income tax (it does matter -even if it's just for home games...do the math), and shiny new facilities.

[Knightro]

I do not know exect percentages of "cut" in ticket sale, but it's reported from multiple sources that Warriors revenue for last year was over 700 000 00 $.
I highly doubt that team with that amount of money, works in minus.

And still, paying luxury + salary still sounds like nothing major for biggest sports team. I know it's not same sport but it's worth noting that almost all best soccer teams revenue is over $800 000 000. Therfore i highly doubt $700 M revenue for Warriors is fabricated info.

So a couple of things...

That $700M projection is for every single thing the Warriors owners have going on - all the non-basketball events at Chase Center, all the real estate surrounding the arena, their new Entertainment division, corporate partnerships, etc.

$700M in revenue purely on basketball is not accurate.

Also... revenue is not profit. The Warriors have major expenses, debts, operating costs, etc - which all come out of that revenue figure.

We know for a fact that have at least $350M in payroll and luxury tax combined outgoing this upcoming season and we know that will increase to about $500 million next season if they resign all three of Green, Wiggins and Poole.

I'm not suggesting at all they're bleeding money, and they built up a nice reserve over the last 3-4 years before their tax bill skyrocketed so high, but paying out $500M in payroll and tax combined is not just a sustainable business model for any NBA team.

[pepe1991]

I do not know exect percentages of "cut" in ticket sale, but it's reported from multiple sources that Warriors revenue for last year was over 700 000 00 $.
I highly doubt that team with that amount of money, works in minus.

And still, paying luxury + salary still sounds like nothing major for biggest sports team. I know it's not same sport but it's worth noting that almost all best soccer teams revenue is over $800 000 000. Therfore i highly doubt $700 M revenue for Warriors is fabricated info.

So a couple of things...

That $700M projection is for every single thing the Warriors owners have going on - all the non-basketball events at Chase Center, all the real estate surrounding the arena, their new Entertainment division, corporate partnerships, etc.

$700M in revenue purely on basketball is not accurate.

Also... revenue is not profit. The Warriors have major expenses, debts, operating costs, etc - which all come out of that revenue figure.

We know for a fact that have at least $350M in payroll and luxury tax combined outgoing this upcoming season and we know that will increase to about $500 million next season if they resign all three of Green, Wiggins and Poole.

I'm not suggesting at all they're bleeding money, and they built up a nice reserve over the last 3-4 years before their tax bill skyrocketed so high, but paying out $500M in payroll and tax combined is not just a sustainable business model for any NBA team.

I just don't trust those numbers or assumpsion teams are losing money.

Since interduction of luxury tax thoes two uber small markets payed sick money just to be contendres.

OKlahoma City Thunder was once stingy over $4M a year with Harden, later in 2014 went $14M in luxury, just to go $25M in luxury in 2016.

Cavs, another ultra small market team, payed, over two years $75M of luxury tax alone. However their estimated value declined once Lebron left, despite their luxury tax downfall to zero.

So i highly doubt Warriors, years later, with championship roster, on major market, one of biggest economic boomers in the world, with ongoing inflation is "losing " money.



before salary & tax reform, when luxury tax wasn't penalized, teams like Knicks ( 2003 & 2004) payed $54M in "luxury tax" And Dallas over 4 years ( 2007-2010) payed $70M . Again, look at timeframe, those numbers mirror near $100M or over $100 M in today's money.

*I don't know did reform interduced them, but Nets in 2012-2014 period payed $123M of luxury tax. ( i assume last two years fell under new cba rule and repetitive tax).


you mentioned how Warriors don't hold all the profit off selling tickets in playoffs & regular season, witch is, ofc true, as portion goes elsewhere. However, you didn't mention that non- basketball invents hosted by arena also count into revenue. So all the concerts and all other non- Warriors-games- activities also goes into revenue

https://www.forbes.com/sites/patrickmurray/2018/09/09/just-how-lucrative-will-the-chase-center-be-for-the-warriors/?sh=1d096e822b29

And again, majority of sponsorship contracts nba teams have aren't aveliable for public, so we don't know how much money teams make. And since nobody is selling nba teams or it's rights, and owners fight to stay -owners , we can all assume, money is made, not lost. Even Rekuten contract for 2022-23 is hard to figure, do they give Warriors $20M a year or $40M for next upcomming season.