Michael Jordan?s Troublesome Past Set to Snatch Away $1,800,000 From LeBron James? Lakers Teammate Despite Signing Biggest NBA Deal

Following a disappointing playoff run last season, the Los Angeles Lakers have surely set their sights on upholstering their roster as the NBA season approaches. The Lakers have signed Gabe Vincent, Rui Hachimura, Jaxson Hayes, Cam Reddish, and Taurean Prince so far. However, the Lakers spent the most on signing a 30-year-old. The team spent a staggering $186 Million in an attempt to secure the Lakers once LeBron James retires.

However, even after signing the richest deal, an unfortunate truth awaits the player. He will reportedly lose $1,800,000, and all due to Michael Jordan!

The Lakers sign the biggest NBA deal

The Lakers guaranteed the future of their best player, Anthony Davis, who recently inked a massive three-year, $186 mn supermax agreement. The agreement extends Davis’ contract with the team until the end of the 2027-28 NBA season. By signing this deal, the 30-year-old secured the annual extension in NBA history at $62M.

Davis had two years remaining on his original five-year, $189 million agreement signed with the Lakers in 2020. This deal was supposed to last until the 2024-25 NBA season. The newly agreed-upon three-year extension will take effect once the current contract expires, spanning the seasons from 2025 to 2028.

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This extension is an important milestone in Davis’ career, both in terms of length and monetary value. However, it might be too soon for AD to celebrate, as Michael Jordan has some other plans in store. Davis will reportedly lose $1,800,000 due to Michael Jordan.

Anthony Davis will lose his money due to the ‘Jock Tax,’ a tax law that had its beginning in 1991 due to Michael Jordan. The ‘Jock Tax’ concept began in the aftermath of the 1991 NBA Finals, in which the Chicago Bulls defeated the Los Angeles Lakers, headed by none other than Michael Jordan.

Surprisingly, the California state government responded to the Bulls’ victory by levying state income taxes on the team. This decision by Golden State elicited a fast retaliation from Illinois, the Bulls’ home state. The answer came in the shape of a ground-breaking rule called ‘Michael Jordan’s Revenge,’ which established the infamous ‘Jock Tax.’

Players and team employees who traveled to Illinois for games are liable to state taxation under this trailblazing law. The concept of taxing players’ income depending on their performance in different jurisdictions became a precedent for many other governments and sports leagues to follow.

So, how much will Anthony Davis lose?

Anthony Davis will be left with only?$24 million

Fast-forward to today, Anthony Davis has become a victim of the ‘Jock Tax.’ Following his latest contract, Davis will have an annual salary of $62 million. A breakdown of his profits shows the enormous impact of various taxes and levies. Federal taxes total $22.9 million, with the NBA escrow claiming $6 million.

California taxes total $4.1 million, agent fees are $1.8 million, and the ‘Jock Tax’ itself totals $1.8 million. FICA/Medicare contributions totaling $1.4 million contributed to the deductions as well.

After the dust settles, Anthony Davis will have a net income of $24 million.

What are your thoughts on the ‘Jock Tax’? Let us know in the comments below!

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