Tim Duncan Took a Paycut to Lower the San Antonio Spurs’ Tax Bill

by July 26, 2012

Tim Duncan, a “Spur for life”, showed some true loyalty to the franchise by agreeing to a paycut on his new 3-year deal. It will save San Antonio quite a bit of money in the tax department. The Express-News has the details: “By accepting an $11.5 million cut from the $21.15 million salary he earned last season, Duncan enabled the club to re-sign its most coveted free-agent players, add 2009 draftee Nando De Colo and still drop below the NBA’s projected luxury-tax threshold for next season. According to contract figures that have been officially released to all NBA teams, Duncan will be paid $9.64 million in the first season of the three-year deal he signed July 11. After being the third-highest paid player in the league last season, behind only Lakers star Kobe Bryant ($25.24 million) and Boston’s Kevin Garnett ($21.25 million), Duncan next season will be the fourth-highest paid Spur. All player salaries last season were pro-rated to account for the 66-game post-lockout season. Veteran guard Manu Ginobili, at $14.1 million, will be San Antonio’s highest-paid player next season, followed by All-NBA point guard Tony Parker ($12.5 million), veteran guard-forward Stephen Jackson ($10.06 million) and Duncan. A two-time NBA Most Valuable Player, the 36-year-old Duncan will see his salary rise to $10.36 million for the 2013-14 season. The team captain is guaranteed $10 million for the 2014-15 season, but he has an opt-out clause. […] The five recent signings give the Spurs 14 players with guaranteed contracts for next season, at a total of $69.13 million. That is safely beneath the projected luxury-tax threshold, unchanged from last season’s $70.307 million. The Spurs are reported to have exceeded last season’s tax threshold by $2.5 million.”