'This Should Be Illegal': Jayson Tatum's Actual Salary From USD 62.8M Contract After Tax Shocks NBA Fans

Jayson Tatum might have ended up with the most lucrative contract in the NBA, but it doesn't mean he gets to enjoy it fully. An insider disclosed what Tatum will actually make and fans have reacted.

Published on Jul 02, 2024  |  06:01 PM IST |  88.8K
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Fans Shocked by Jayson Tatum's Post-Tax Earnings from $62.8 Million Salary

Jayson Tatum signing his supermax contract extension was an obvious move. The man has earned every cent the Boston Celtics can pay him, right? The Celtics and their fans certainly think so. But taxes can take a big bite out of even the NBA’s biggest contracts, making them less profitable than they appear. According to Shams Charania and Jared Weiss of The Athletic, Tatum will be able to sign the deal on July 6, replacing his $37 million player option for the 2025-26 season.

This contract, a 5-year deal worth $314 million, will keep Jayson in Boston through the 2029-30 season.

Now, here's the surprising part: After taxes, the 26-year-old will only take home $25.2 million annually from the $62.8 million. Andrew Petcash of 'Profluence Cap' shared these figures on X.

READ MORE: How Much is Jayson Tatum Contract? Celtics Star Becomes Highest Paid NBA Player Ever With Record Supermax Extension

Fans react to how much Jayson Tatum will actually make out of his USD 62.8 million deal

According to Petcash's breakdown, $23.2 million goes to Federal tax, $4.7 million as the jock tax, $8.1 million for Escrow and agent commission, and $1.4 million in FICA/Medicare. This leaves Jayson with a net income of $25.2 million.


This breakdown makes you wonder how it can be called lucrative, right?

Of course, this doesn't include endorsements and other income sources that keep the Tatum family comfortable. And $25.2 million is still far more than most of us earn. Even so, Jayson Tatum holds the largest NBA contract title, following his teammate Jaylen Brown last year.

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Here's how fans reacted:

One fan said, "Government is the big winner on every contract."

 


Another joked, "IRS taking more money than Tatum is crazy work."


"IRS just taking away your living," said another fan.


"Jock Tax," another user mentioned.


One fan noted, "You forgot state income tax."


Another user said, "Police officers and military make way less and put their lives in danger. These contracts are a joke."


The Celtics’ salary cap table as they reignite Championship dreams 

The good news is that the Boston Celtics' core is staying put. Besides Jayson Tatum, the team secured All-Defensive Second-Teamer Derrick White with a four-year $125.9 million maximum contract extension.

However, Tatum and White’s contracts don’t affect the upcoming 2024-25 season since their current contracts expire then. Right now, key players like Jaylen Brown, Jrue Holiday, Derrick White, Jayson Tatum, and Kristaps Porziņģis collectively cost the franchise about $162 million, which will rise to $200 million in 2025-26.

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And here's the downside. The team won’t have much financial flexibility left. Besides these five, three other players are also under contract for the 2025-26 season: Neemia Queta, Payton Pritchard, and Jordan Walsh. But that’s a problem for later.

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

PLAYER

CAP HIT

Jayson Tatum

$34,848,340

Jaylen Brown

$49,205,800

Derrick White

$20,071,429

Kristaps Porzingis

$29,268,293

Jrue Holiday

$30,000,000

Neemias Queta

$2,162,606 (estimate)

Payton Pritchard

$6,696,429

Jordan Walsh

$1,891,857 (non-guaranteed)

Jaden Springer

$4,018,363

Al Horford

$9,500,000

Sam Hauser

$2,092,344

Luke Kornet

$2,087,519 (estimate)

TOTAL

$191,842,980

READ MORE: Zach Edey Fans Mock Jayson Tatum After Canadian Star’s Post on Instagram: ‘Recreate This'

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About The Author

Natasha Bose, a master's graduate in English Literature from Indira Gandhi National Open University, is a Kolkata-based writer

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