5 teams with the largest luxury tax bill entering the 2021-22 NBA season

The NBA has a salary cap that prevents teams from spending too much, helping retain parity between franchises in small and big markets. For the 2021-22 NBA season, the salary cap is at $112.414 million and a tax level at $136.606 million.

Some teams will exceed the salary cap, which is why the tax level or luxury tax threshold is put in place. If a team exceeds the threshold, they have to pay a luxury tax bill worth millions.

Out of the thirty teams, only ten are entering the new NBA season with a luxury tax bill. Things could still change, as teams can manuever salaries via releases or trades. Teams are going to pay the luxury tax bill at the end of the season.

Nevertheless, here are the five teams with the largest tax bills entering the 2021-22 NBA season:

#5 Milwaukee Bucks – $41.5 million

The cost of winning an NBA championship is huge. The Milwaukee Bucks are entering the 2021-22 season as the champions, but they also have the fifth-largest tax bill at $41.5 million.

One of the reasons why the Bucks have a huge payroll is due to their three superstars signing max contracts. Giannis Antetokounmpo, Khris Middleton and Jrue Holiday have all signed long-term, meaning Milwaukee have a chance at an NBA championship in the next five years.

The Bucks are owned by multiple individuals and groups, including four majority owners. Currently, the team is valued at $1.9 billion, which makes them the 17th-most valuable NBA franchise.

#4 LA Lakers – $46.3 million

The LA Lakers are one of the biggest market teams in the NBA. They are multiple tax offenders since the luxury tax has been implemented, but it has been worth it due to the number of championships they have won.

Entering the 2021-22 NBA season, the Lakers have a luxury tax bill of $46.3 million. Most of their payroll is occupied by the salaries of LeBron James, Russell Westbrook and Anthony Davis. The trio has a combined salary of $120.8 million.

Breaking: The Lakers are near a deal to acquire the Wizards’ Russell Westbrook for Kyle Kuzma, Montrezl Harrell, Kentavious Caldwell-Pope and a 2021 first-round pick, sources tell @wojespn.

Breaking: The Lakers are near a deal to acquire the Wizards’ Russell Westbrook for Kyle Kuzma, Montrezl Harrell, Kentavious Caldwell-Pope and a 2021 first-round pick, sources tell @wojespn. https://t.co/gY7sGB6Rbr

The LA Lakers’ majority owner is the Buss Family, with Jeanie Buss serving as the team’s controlling owner and team president. The Buss Family trust has a reported net worth of around $4 billion.