Anthony Davis recently signed the richest annual contract extension in NBA history with the Los Angeles Lakers. Raking in an average of $62,000,000 per year, AD is making the big bucks. However, there is a lot of skepticism surrounding this new deal, specifically because of his health. Over the last few years, he has been quite injury-riddled and this is a cause for concern. A concern that two-time Super Bowl champion Damien Woody shares, as he questioned whether or not Davis would be consistent enough to earn the $62,000,000 on First Take.
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With the new contract signed, AD becomes the highest-paid player in the NBA. The news broke out just days after Jaylen Brown signed a whopping five-year extension with the Boston Celtics. One worth $305,000,000. Another huge deal, but one that does not match up to what The Brow signed in LA.
Former Super Bowl Champion Damien Woody expresses concern over Anthony Davis and his new $62,000,000 per year deal
Recently on First Take, the topic of Anthony Davis and his new $186,000,000 extension came up for discussion. The deal will see AD earn up to $62,000,000 on paper. An incredible sum, and one that makes him the highest-paid player in the NBA. However, Damien Woody, who was on the panel expressed some concerns.
The two-time Super Bowl Champion, best known for his time with the New England Patriots raised the issue of Davis’ injury problems. He explained, that while The Brow does have the talent, his consistency will be key in determining whether or not this is a good deal for the LA Lakers.
It is a fair concern to have. After all, as was pointed out, he has failed to play 70 games at least eight or nine times in the last 11 seasons. This begs the question, are the Lakers getting value for money with this record-breaking extension?
“My reaction is…is he going to be consistent enough on the court to earn that $62,000,000. That’s been the whole thing with Anthony Davis! No one doubt’s his talent, when he gets going he’s a top-five guy. But, it’s the matter of him staying healthy. That’s something he hasn’t done. So, that’s the problem I have with the whole $62,000,000 per year for Anthony Davis.”
.@damienwoody reacts to Anthony Davis’ new contract:
“Is he going to be consistent enough on the court to earn that $62M?” pic.twitter.com/TCX7Z7Gg0R
— First Take (@FirstTake) August 7, 2023
At the end of the day, only time will tell if the Purple and Gold have made a mistake in signing AD to such a deal. Hopefully, the superstar forward can prove the doubters wrong. But, this can only be achieved with consistent performances on the court.
AD will take a 61% pay cut thanks to the Michael Jordan tax and more
It’s true, that Anthony Davis stands to earn a lucrative $62,000,000 with his new contract. However, that is before he pays his taxes. Taking into account numerous different taxes, including the Jock tax or the Michael Jordan tax, NBA escrow, Federal tax, State tax, FICA, and agent fees, Davis will see a 61% pay cut in his salary.
This means, his actual take-home salary stands at around $24,000,000 per year, losing out on a whole $38,000,000 thanks to taxes.
Anthony Davis just signed the NBA’s richest annual extension (3 years $186 million).
And the will be steep playing in LA:
$62M: Salary
–
$22.9M: Federal Tax
$6M: NBA Escrow
$4.1M: Cali Tax
$1.8M: Agent Fee
$1.8M: Jock Tax
$1.4M: FICA/Medicare
=
$24M: Net Income pic.twitter.com/JhjrGjNWhC— Andrew Petcash (@AndrewPetcash) August 5, 2023
All things considered, Davis still gets to keep a pretty penny. But, it sure isn’t the $62,000,000 his contract would have you believe he is earning.
