How Much Jayson Tatum Can Take Home From $62.8 Million/Yr Salary After Tax? NBA’s Biggest Contract Is Not as Lucrative as It Looks

Jayson Tatum signing his supermax contract extension was a no-brainer, really. The man deserves every penny the Boston Celtics have to offer, yes? Well, the Cs and the larger audience might agree. However, factors like taxes still manage to cut the NBA’s largest contract and turn it into a not-so-lucrative one. As reported by Shams Charania and Jared Weiss of The Athletic, Tatum can sign the deal on July 6 and when done, is expected to replace his $37 million player option for the 2025-26 season.

The contract, a 5-year $314 million, will ensure that Jayson stays in ‘Beantown’ through to the 2029-30 season.

Circling back to what we said earlier, well, you’d be shocked at the remaining annual amount that the 26-year-old takes home. A mere $25.2 million from the $62.8 million is what Jayson will receive after tax deduction. Andrew Petcash of ‘Profluence Cap’ wasted no time sharing the numbers, on X.

As per his breakdown, $23.2 million goes straight to Federal tax, $4.7 million as the jock tax, then comes $8.1 million in Escrow and agent commission, and finally $1.4 million in FICA/Medicare. It leaves the guy with $25.2 million in net income.

Makes you wonder just how exactly can it be called lucrative, no?

Of course, we aren’t taking endorsements and other avenues of profit-making that ensure the Tatum family is comfortable. And $25.2 million is still a lot more than you and I make. Well, despite it all, Jayson Tatum holds the title of the recipient of the largest contract in the NBA after his teammate, Jaylen Brown last year.

An interesting development that happened meanwhile was majority owner Wyc Grousbeck’s announcement that he was going to sell his stake in the team within the next year. ESPN’s Wojnarowski dropped the news initially, with the Celtics confirming the report soon. As per the notice, Boston Basketball Partners LLC will sell the controlling ownership by late 2024 or early 2025.

The rest will be done by 2028. Until then, Grousbeck remains the Governor. As related developments progress on the side, let’s take a look at the Cs’ salary cap space.

The Celtics’ salary cap table, as they reignite Championship dream

The good news is that the Boston Celtics’ core isn’t going anywhere. Aside from Jayson Tatum, Boston made sure they got All-Defensive Second-Teamer, Derrick White, locked in. He is now signed in for a four-year $125.9 million maximum contract extension.

However, both Tatum and White’s contracts do not exactly impact the upcoming season, that is 2024-25, which is when their current contracts will expire. As of now, the key pieces of the championship-winning team, namely, Jaylen Brown, Jrue Holiday, Derrick White, Jayson Tatum, and Kristaps Porziņģis together cost the franchise around $162 million. But this increases to a whopping $200 million in the 2025-26.

And that’s where the bad news comes in.

It doesn’t leave the franchise with much room to work with. Aside from the above-mentioned five, three other players are also under contract for the 2025-26 season. They are Neemia Queta, Payton Pritchard, and Jordan Walsh. However, that’s something they can worry about a little later.

For now, here’s the salary cap table for the 2024-25 season.

Well, there you go. The Celtics rank third in the league with their total active cap. As for their cap hold, it comes to $16,749,618 and stands at 27th. Their cap maximum stands at $140,588,000. Given the total allocations come to a grand total of $208,592,598, the Cs are basically -$68,004,598 in cap space.

The fact their first apron maximum stands at $178 million and the second apron at $188 million, there is no doubt that Boston will be one of the teams that will go over the second tax apron. It would have happened regardless of Jayson Tatum’s contract extension.

But hey, they still have all the major title contenders within their walls. Of course, it’s too early to tell. But many are already predicting the Jays to repeat the 2023-24 glory in the upcoming season, as well. Think that’s a little too premature? Especially given the kind of groundbreaking changes many teams have undergone and continue to in the offseason.

Tell us more.

Before you go, do not forget to check out Shaquille O’Neal’s ex-agent, Leonard Armato, to open up about the infamous Shaq-Kobe feud. Keep checking this space for more such updates.