Tyrese Haliburton Set to Lose $690,000 From Lucrative Contract All Because of Michael Jordan
Tyrese Haliburton and Michael Jordan (Credit: X)
It might interest NBA fans to hear that Michael Jordan inadvertently ended up causing Tyrese Haliburton to lose more than half a million dollars. As many fans who have watched this season’s games should be aware, Haliburton is a young and upcoming star in the league currently playing for the Indiana Pacers.
Michael Jordan needs no introduction to the majority of basketball fans. The Chicago Bulls legend is a 6x NBA champion and is still regarded by many to be the GOAT. Although we will remember Jordan for his moments on the court, it would be fair to say that his impact on the league can still be felt to this day.
Tyrese Haliburton is just one of many NBA stars who have inadvertently been affected by Jordan. Since this certainly has the potential to confuse NBA fans, a closer look is required.
What are the milestones that Tyrese Haliburton should achieve?
Until recently, Tyrese was on a 4-year rookie contract worth around $17 million. Some fans might remember that Haliburton entered the league with the Sacramento Kings and was traded to the Pacers in a trade involving Domontas Sabonis. Since being traded, he has taken a significant step forward and is now arguably one of the top point guards in the league.
As a result, the Indiana Pacers signed him onto a 5-year contract worth $205 million. Moreover, that number could go even higher based on some undisclosed milestones. While there is no denying that earning around 40 million a year is a huge leap forward as opposed to 4 million, it is important to mention that Haliburton will lose quite a lot of money due to taxes.
This is where Michael Jordan comes in. Some veteran fans might remember that MJ is responsible for the Jock Tax, a concept through which NBA stars are expected to pay a certain amount of money to teams that they will be facing on the road. According to the calculations made, Haliburton will be paying around $690,000 for Jock Tax alone.
Tyrese Haliburton just signed a 5-year $207M contract extension w/ the Pacers.
Here's how much he will actually earn: 😲
$41.4M: Salary
–
$15.3M: Federal Tax
$4.1M: NBA Escrow
$1.2M: Agent Fee
$971k: FICA/Medicare
$690k: Jock Tax
$652k: Indiana Tax
=
$17.7M: Net Income pic.twitter.com/TT7gbHbc9P— Andrew Petcash (@AndrewPetcash)
July 2, 2023
When taking into consideration all the other forms of tax that Tyrese will have to pay, as every player in the NBA does, his yearly income reduces from the expected $40 million to just around $17.7 million. Since this is certainly a significant drop from what one would expect, it is fair to say that Tyrese might be motivated to hit those undisclosed milestones in order to make his full $260 million.
𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭:
Tyrese Haliburton inked a 5-year rookie max extension starting at $207 million (or 25% of the salary cap).
Can reach $260 million (30% of cap) if he hits the agreed upon milestones. pic.twitter.com/597OkJ3zy3
— Andrew Petcash (@AndrewPetcash) July 2, 2023
While there is no way of knowing without question, his milestones could be along the lines of making the all-star team, all NBA teams or even leading the league in assists. Fans look forward to seeing if he is able to extract his complete $260 million from the Pacers through his play.
