With this $ 17.2 million trading exemption, which expires seven days after the free agency begins, the Warriors can enroll any player whose salary is equal to or less than that amount for the next season. This way, however, it will cost Golden State a lot more.
The Warriors are expected to owe around $ 69 million in luxury tax penalties by the next season, and each additional dollar added to the ledger will be multiplied, based on their tax bracket. If they were to take in a salary equal to the full value of the trade exception, it would add about $ 76 million to the projected tax burden. Even if the warriors received a much smaller salary, other than trade, it would still cost them a few pretty pennies.
Given the massive loss of league revenue as a result of the COVID-19 pandemic, it stands to reason that the Warriors and every other NBA team will be more cautious about how they spend money this off-season. That explains why The Athletic’s Anthony Slater reported last week, citing sources, that the Warriors will only use the trade exception for something they cannot afford to forgo.
“But every additional dollar is multiplied in the warriors’ tax bracket,” wrote Slater. “Without knowing the exact upper limits or the future date the Chase Center will reopen to fans, sources are increasingly insisting on using this $ 17.2 million exemption: It would have to be a special occasion. Is an overpriced medium rotation piece considered special? ”
RELATED: Seven Candidates For Warriors Massive Trading Exemption Of $ 17.2M
A special opportunity, right? How the warriors define what is “special” is unclear, but we should find out soon. When they use the trading exception, they clearly see the acquired player as worth the massive investment that would be required to get them on the list.
And if not? Well, the warriors will lose one of their best assets for free, but at least it won’t cost them anything extra.
Download and subscribe to the Runnin ‘Plays Podcast
These were the details of the news NBA Rumors: Warriors will only use trade exemptions for “special occasions”. for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at de24.news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.