With their exploding luxury-tax bill, every future dollar committed is important for the Golden State Warriors to track and monitor. It may dictate whether they do or don’t make subsequent moves. That’s why the exact details of Jordan Poole’s lucrative four-year extension, which kicks in next season, are useful to understand.
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Poole is guaranteed at least $123 million over the course of the deal. It can stretch its way to $140 million, but the odds of Poole obtaining every dollar of that extra $17 million are near impossible, given the incentive structure in place.
So let’s take a quick look at it. This is on a per-season basis, in place for each of the four years.
- Poole will make an extra $250,000 if he plays at least 65 regular-season games and the Warriors reach the first round of the playoffs.
- Poole will make an extra $250,000 if he plays at least 65 regular-season games and the Warriors reach the second round of the playoffs.
- Poole will make an extra $250,000 if he plays at least 65 regular-season games and the Warriors reach the conference finals.
- Poole will make an extra $250,000 if he plays at least 65 regular-season games and the Warriors reach the NBA Finals.
- Poole will make an extra $250,000 if he plays at least 65 regular-season games and the Warriors win at least 52 regular-season games.
The NBA has deemed all five of those as likely incentives, meaning they will initially be counted against the salary cap in Poole’s projected number but won’t count against the actual tax bill unless he meets the required incentive.
The four-year extension the Warriors are finalizing with Jordan Poole is worth $123 million guaranteed, per sources, with incentives (likely/unlikely) that can stretch it to the $140 million range over life of the contract https://t.co/ZUSS2tFFuX
— Anthony Slater (@anthonyVslater) October 15, 2022
But those only make up $1.25 million of the extra $4.25 million per season in incentives lining the Poole contract extension. The other four incentives are considered unlikely and don’t count against the initial salary-cap number. Here they are on a per-season basis, also in place for each of the four years.
- Poole will make an extra $1 million if he wins MVP.
- Poole will make an extra $1 million if he wins Defensive Player of the Year.
- Poole will make an extra $500,000 if he makes any of the three All-NBA teams.
- Poole will make an extra $500,000 if he makes any of the two All-Defensive teams.
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It is conceivable Poole could emerge as an All-NBA player as he ages into his prime, so that extra $500,000 per season isn’t out of the question. But you can place the MVP, Defensive Player of the Year and All-Defensive team incentives in the far-fetched category, particularly the last two.
So that’s $2.5 million per season you can basically wipe off the top, $10 million total over the course of the contract. Basically: It can be considered a four-year, $123 million contract extension that could realistically nudge into the $125 million to $128 million range if he remains healthy and productive and the Warriors continue to win big.
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Why does that matter? Look at this past summer. The Warriors decided against stretching their contract offer to Gary Payton II a couple extra million to meet Portland’s price point because of their spiking tax bill. They are watching every dollar on the margins. A few extra saved here could mean a few extra spent there, if, for example, a player like Donte DiVincenzo has a nice season and wants to stay but requires a pay bump.
(Photo: Cary Edmondson / USA Today)
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