In the event you have been to record the Warriors’ three greatest non-player property in the mean time, the $17.2 million commerce exception they acquired as a part of the Andre Iguodala commerce with the Memphis Grizzlies final offseason actually could be amongst them. The draft picks — Golden State‘s No. 2 total decide in 2020 and the Minnesota Timberwolves‘ top-three protected 2021 first-rounder — may carry a few new period of Warriors basketball within the not-too-distant future, however the large commerce exception may change their fortunes within the fast.
With that $17.2 million commerce exception — which expires seven days after free company begins — the Warriors can take up any participant whose wage for subsequent season is the same as or lower than that quantity. Nonetheless, in doing so, it’ll price Golden State a heck of much more than that.
The Warriors already are projected to owe about $69 million in luxurious tax penalties subsequent season, and any extra greenback added to the ledger shall be multiplied –according to their tax bracket — on prime of that. As such, in the event that they have been to soak up a wage equal to the total worth of the commerce exception, it might improve that projected tax invoice by about $76 million. Even when the Warriors have been to soak up a considerably smaller wage with the commerce exception, it might nonetheless price them a number of fairly pennies.
And, given the huge lack of league income ensuing from the COVID-19 pandemic, it stands to cause that the Warriors, and each different NBA crew, shall be extra prudent in how they spend cash this offseason. That explains why The Athletic’s Anthony Slater reported final week, citing sources, that the Warriors will solely use the commerce exception for one thing they cannot afford to move up.
“However each additional greenback is multiplied within the Warriors’ tax bracket,” Slater wrote, “and with out understanding actual cap numbers or the longer term date that Chase Heart will reopen to followers, sources more and more insist on the utilization of that $17.2 million exception: It’d need to be a particular alternative. Is an overpriced mid-rotation piece thought of particular?”
A particular alternative, huh? As to how the Warriors outline what constitutes “particular” is anybody’s guess, however we must always discover out earlier than lengthy. In the event that they use the commerce exception, clearly they view the acquired participant as well worth the large funding it might take so as to add him to the roster.
And if they do not? Nicely, the Warriors will lose considered one of their greatest property for nothing, however at the least it will not price them something additional.