“We’re over $200 Million in total” Warriors owner Joe Lacob condemns $55 Billion-worth NBA for unfair luxury tax laws
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Joe Lacob at the Warriors' championship parade in 2022
One of the NBA’s most profitable franchise owners at the moment is Joe Lacob. The Golden State Warriors’ four titles over the previous eight years are an unmistakable proof of this. The Warriors’ willingness to pay a substantial luxury tax bill in order to win yet another NBA championship this summer supposedly had other NBA owners “grumbling.” It turns out that the person who paid the bill wasn’t very pleased either. The Warriors will cost a fortune every season since Steph Curry, Klay Thompson, and Draymond Green are all committed to huge contracts.
In a 50-minute episode of the “Point Forward” podcast, Joe Lacob discussed a variety of topics, including his business career, the team’s trip to the Finals, and of course, a hotly debated issue: the luxury tax. Lacob spent the first part of this week in New York City for the NBA’s board of governors meeting. The 66-year-old millionaire acknowledges that despite all the highs and lows, managing the NBA’s luxury tax restrictions has proven to be the “hardest thing of all.”
Joe Lacob- The mastermind behind the 4 rings of Golden State Warriors
Since becoming the team’s main owner in 2010, Joe Lacob has experienced a lot with the Warriors. The organization were bought by Lacob and his investment group in 2010 for a then-record $450 million. According to a January estimate from Forbes, the team is currently valued $6 billion, making it the second most valuable NBA franchise. In Lacob’s time as owner, the Dubs acquired Andre Iguodala in free agency, traded Andrew Bogut for Monta Ellis, drafted Klay Thompson, Harrison Barnes and Draymond Green, replaced Mark Jackson with Steve Kerr, promoted Bob Myers to general manager and last but not least, he kept Stephen Curry, the greatest shooter of all time, with the Warriors till date.
It’s not as if the other owners doesn’t have wealth; according to reports, Lacob has one of the lowest net worths among NBA owners. But it’s fair to say that the other owners, many of whom are billionaires, can afford low-nine-figure payrolls since they are all profit-sharers in a successful league. Lacob disapproves of his fellow business owners’ concerns but supports some expenditure restrictions. All of that expenditure resulted in a luxury tax charge of over $170 million, which the team paid for the squad that won its fourth NBA championship in eight seasons for over $346 million. But the Dubs were a squad consisting of guys they drafted and free agents they brought to veteran minimum salaries last summer.
Joe Lacob was straightforward about the many difficulties he’s had in this regard on a recent edition of the “Point Forward” podcast with Andre Iguodala and Evan Turner. He also expressed how he actually feels betrayed by the league’s governing laws on the subject. “We’re $200 million over in total because most of that is this incredible penal luxury tax and obviously it’s self-serving for me to say this, but I think it’s a very unfair system because our team is built by — all top eight players are all drafted by this team”, he said.
Some people in the association agree with this opinion, including Bobby Marks, a former Nets assistant general manager and current ESPN front office analyst. However, it is evident that the owner of the NBA champions disagrees with Silver on his remarks on the situation, despite the fact that Silver must deal with 30 owners on the luxury tax. When you consider how admirably the Warriors constructed their dynasty from the draft, it does seem strange that they are currently experiencing the financial fallout from the wise choices they made over the years.
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Irvin Philip
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