The NBA salary cap projections could have stifling consequences on the Golden State Warriors.
The league released projections for salary cap and luxury tax for the 2020-21 season to teams Thursday, according to ESPN’s Adrian Wojnarowski and Bobby Marks.
With a lower salary cap and luxury tax than expected, the Warriors could be on the hook for a tax payment as high as $77.5 million, about $12 million more than what was expected.
The salary cap is expected to be $115 million, according to Wojnarowski. That would be an increase from the 2019-20 season, but not as much as the previously-predicted $116 million.
The luxury tax is projected to be $139 million, Wojnarowski reported.
As the roster currently stands, the Warriors’ 2020-21 payroll will be $147.87 million, according to Basketball Reference.
The luxury tax projection will be $139M, per sources. https://t.co/3jBS3llJqG
— Adrian Wojnarowski (@wojespn) January 30, 2020
Four players on the Warriors roster are set to receive more than $20 million: Draymond Green’s extension will start at $22 million, D’Angelo Russell will be paid more than $28 million, Klay Thompson $35 million and Stephen Curry $40 million.
The Warriors will also likely add a high first-round draft pick to the sheet. A top-five pick would result in a cap hit ranging from $6.8 million to $10.73 million.
Golden State has a $5.9 million exception to use on a free agent, according to Wojnarowski and Marks.
If the Warriors use the entire taxpayer mid-level exception, their luxury tax bill could range from $77.5M if they get the No. 1 pick to as low as $61M if they get the No. 5 pick.
The easiest way to get under the luxury tax would be to trade Russell. A highly-coveted free agent this past offseason, he will have three years left for about $30 million per year after this season.
Moving his contract would put Golden State right near the luxury line, depending on other roster changes, and allow them to move manageable contracts to clear the rest of the way if needed.
But the Warriors have not been shy about exceeding the luxury tax in recent years. If the front office feels the team can still compete for a title when Curry and Thompson return from injury, it may pay the price again.
USA TODAY Sports Media Group salary cap expert Yossi Gozlan contributed research to this report.