Oklahoma City Thunder face massive luxury tax bill after playoff exit
The Oklahoma City Thunder face unprecedented financial decisions this summer following their dramatic Game 7 playoff defeat to the San Antonio Spurs, with ballooning player salaries threatening to trigger a massive luxury tax bill.
A back-and-forth Western Conference finals series culminated in heartbreak for the top seeds on Saturday night.
Following the loss, star guard Shai Gilgeous-Alexander was asked about his potential involvement in future roster construction.
“I will give zero input.”
“I will let Sam Presti, the greatest GM ever, do his job.”
Shai Gilgeous-Alexander
Presti’s proven track record
Such unwavering player trust reflects the unique stability enjoyed by the franchise under their long-serving general manager.
Presti is currently completing his 19th season at the helm, having originally taken charge of the Seattle SuperSonics at the age of 31.
Through astute drafting and shrewd trades, the executive has constructed two separate championship-calibre squads in one of the NBA’s smallest markets.
This latest iteration achieved elite status rapidly, becoming just the sixth team since 1983 to secure the number one seed in three consecutive campaigns.
Their most recent playoff run was ultimately hampered by an injury to crucial forward Jalen Williams, severely impacting their chances of reaching another NBA Finals.
Rising costs of a budding dynasty
Sustained success on the basketball court inevitably leads to escalating financial commitments off it.
Ownership now faces a critical juncture regarding how much they are willing to spend to keep this optimised roster intact.
Lucrative contract extensions for 2022 lottery picks Williams and Chet Holmgren are set to take effect during the 2026-27 season.
The highly-rated duo will both see their annual salaries rocket to $41.5m, firmly establishing them as cornerstones of the franchise.
Looming roster decisions
Immediate uncertainties also surround several key supporting players heading into the offseason.
Isaiah Hartenstein, an instrumental addition to their recent championship-winning campaign, holds a team option worth $28.5m for next year.
Meanwhile, long-serving defensive specialist Luguentz Dort carries an $18.2m team option of his own.
The overall team payroll sat at a highly manageable $186.7m this year, keeping the organisation safely below the tax threshold for a sixth straight season.
However, projected salaries for the upcoming campaign currently sit at an eye-watering $250.5m before any free agency moves are even considered.
Surpassing the NBA’s punitive second apron would trigger a severe luxury tax penalty estimated at more than $200m.