]Update: Boston won the 2024 NBA Finals Monday evening, beating the Dallas Mavericks 106- 88 in Game 5 to get the line 4- 1.]
To get in the NBA, you usually have to spend more money than your competitors. The pleasure income has been paid for by 19 of the previous 17 NBA leaders. This is despite the fact that, on average, less than one- third of the league’s 30 groups have paid the luxury income in any given time.
One activity apart from winning the Larry O’Brien Trophy, the Boston Celtics are just one more big-spender to do so. With a payroll of$ 184.2 million for the 2023- 24 season, per Spotrac, Boston was well over the luxury tax threshold of$ 165.3 million. User Wyc Grousbeck will therefore be responsible for paying an estimated$ 41.4 million in taxes based on how the luxury tax is calculated. It will be distributed among all companies that do not pay taxes, making it the fifth-highest tax invoice in the NBA.

The Celtics are on the verge of a title, but, not just by spending more than other teams, but according to savvy front- office decisions. In 2022, Boston dealt Josh Richardson, Romeo Langford and a earliest- round pull for Derrick White. The team traded well-known former Celtic Marcus Smart and some other items for Kristaps Porzingis early last season. The Celtics next traded Malcolm Brogdon, Robert Williams III, and two pulls for Jrue Holiday from Milwaukee.
All three movements proved unquestionably victories for Boston. Only 59 games of combined playing for various league teams this season were only the athletes ‘ and drafts’ combined starting lineups for three nearly All-Star level players.
It even helps that Boston’s two longest- permanent stars, Jayson Tatum and Jaylen Brown, are still on rookie contract modifications in 2023- 24. The Celtics had room to go out and buy aristocracy supporting players for their combo without any utmost wages clogging up their cover sheet.
The tournament- level squad was n’t low, though. The key is then whether and how much will President of Basketball Operations Brad Stevens be able to keep this atom up, and whether or not.
The good news for Boston enthusiasts is that the company will essentially be able to move it up in 2024 to 25 with the same squad plus a document find or two given that the franchise’s entire starting five and leading three chair people are under contract. Xavier Tillman Sr. and Luke Kornet are the roster’s top free agents.
The bad news, however, is that Jaylen Brown’s supermax extension kicks in, which will pay him$ 49.4 million next year, a significant raise from the$ 31.8 million he cost the Celtics this year. Boston will once more be in the luxury tax zone as more than$ 192 million will be owed to players in the coming year.
Teams can go over the soft salary cap in the NBA using a variety of methods permitted by the league’s collective bargaining agreement ( CBA ), but if they go over the luxury tax threshold, they must pay a luxury tax. For every dollar they spend over the threshold, franchises begin by paying$ 1.50 to the league, and the rate gradually increases as they go over. Additionally, the league places a repeat offender penalty ( an additional dollar-for-dollar tax over the payroll threshold ) on those who paid a tax in three of the previous four seasons.
After the 2024- 25 season, the Celtics will be repeat offenders, having paid the tax in 2023 and 2024. Additionally, they are anticipated to go over the second apron, an additional level introduced in the 2023 CBA that is$ 17.5 million over the luxury tax threshold.
Second apron teams are prohibited from sending out cash in a trade, aggregate contracts in a trade, recouping more incoming money than incoming money in a trade, or make trade exceptions from previous years as stated in the CBA. Additionally, teams finishing 2025 over the second apron will have their 2032 first- round picks frozen ( i. e. untradable ). In addition to the monetary penalties, those roster-building restrictions are included.
Had Celtics not recently reached a deal to extend their relationship with Holiday, they would have been in worse financial straits. In exchange for a more secure long-term deal in Boston that pays him$ 134 million over four years, starting with$ 30 million the following year, the former NBA champion turned down a$ 37.3 million player option for 2024- 25. The Celtics have the option to go below the second apron via trades if they deem that to be a priority thanks to that modest pay cut, which equals roughly$ 35 million in luxury tax savings.
In 2025-26, Boston’s situation will start to get dicey when the supermax extension, for which Tatum is eligible this summer, would begin to pay. If Tatum and the team agree to that deal, Boston will already be nearly at the luxury tax threshold with salaries committed to just four players: Tatum, Brown, Holiday and Porzingis.
The big question Stevens will be asked is White’s future plans for the summer of 2025, but he could receive a four-year,$ 123 million extension starting in July, which would begin the season following that. Should you pay him right away and then figure out the finances, or should you trade him in the 2024-25 season so he does n’t leave without getting anything in return?
If the Celtics do pay White his market value, even if they fill out the entire rest of their 2025- 26 roster with minimum salaries, they would still be staring down a tax bill of nearly$ 200 million. The penalty would likely exceed$ 250 million if they attempted to hold onto reserve sharpshooter Sam Hauser as well.
The Golden State Warriors were able to extend their 2010s dynasty with a title in 2021- 22, when the team paid$ 175.9 million in salary and nearly as much ($ 170.3 million ) in luxury tax. Changes in the 2023 CBA attempted to make it more difficult for deep-pocketed owners to find ways to get out of trouble and to force dominant teams to make difficult choices before turning into dynasties. It seems to already be working.
Six different franchises have won six consecutive titles for the first time in league history, which is a rare parity in the NBA. The Boston Celtics are in a good position to end their streak, but their success has already cost them money, and it will only get worse from here. They have a 3-1 NBA Finals lead and their entire core will return next year.
Will they be able to foot the bill for it?