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Basketball players can make a substantial income, especially in the NBA, where players have the highest salaries in US pro sports. The average NBA salary is over $10 million, with Stephen Curry leading the way at $55.8 million. However, salaries vary depending on factors such as league, country, and team success. For example, in overseas leagues, salaries can range from $100k to $3 million per year, with China offering the highest average of $1 million to $3 million USD. Additionally, NBA playoff teams receive bonuses based on their performance, with the NBA champion taking home the largest payout. While the majority of NBA players earn substantial salaries, the same may not hold for other leagues and countries, with some athletes earning less than $3 million annually.
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What You'll Learn
NBA tournament salaries
The NBA has a salary cap for each season, which is the maximum amount of money that a team can spend on player salaries. For the 2025-26 season, the salary cap was set at $154.647 million. The previous season's salary cap was not disclosed, but it was mentioned that the NBA playoff pool increased by 3% after a 25% increase the previous season.
While the salary cap is the maximum amount a team can spend on player salaries, individual players can earn salaries above the average. The average NBA salary is over $10 million, with Stephen Curry earning $55.8 million, the highest in the league. Forty-nine players earned at least $30 million in the 2024-25 season, with Shai Gilgeous-Alexander ($35.9 million) and Isaiah Hartenstein ($30 million) of the Thunder joining this group.
Players on NBA playoff teams will share $34.7 million for the 2024-25 season, an increase of $1 million from the previous season. Each team receives a portion based on how far they advance in the playoffs, with the NBA factoring in regular-season records in its playoff pool. For instance, the NBA champion for the 2024-25 season will receive a bonus of $8.55 million, a 79% increase from the previous season.
The NBA also holds an In-Season Tournament, which has a bonus structure. The NBA distributed $18 million in bonus money for its inaugural In-Season Tournament in 2023, with just under half going to the winning team. Each member of the winning team received $500,000, while each member of the losing team in the final received $200,000.
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Overseas basketball salaries
The salaries of overseas basketball players vary widely, with players in the top leagues earning anywhere from $100k to $500k per season in Europe, $120k to $400k in Japan or South Korea, and $1 million to $4 million in China. These salaries are typically much higher than what players in other parts of the world receive, which can range from $2k to $20k per season. It's important to note that these figures represent the highest-level leagues, and players may need to work their way up before earning these salaries.
One advantage of playing basketball overseas is that teams usually pay the taxes on players' incomes. This means that players receive the full amount stated in their contract, unlike in the NBA where taxes can take up a significant portion of the earnings. However, American citizens are still required to file their taxes and report all income to the IRS, regardless of where they live and play.
The lack of a universal player salary cap system in overseas basketball contributes to the wide range of salaries. While some players in top-tier leagues can earn millions annually, others in lower-level leagues might make as little as $700 to $1,000 per month. The average overseas basketball salary is estimated to be between $700 and $2,000 per month, with only a small percentage of players reaching six-figure contracts.
China stands out as a top destination for overseas basketball players due to its high-paying leagues. The Chinese Basketball Association (CBA) offers contracts ranging from $1 million to $4 million per year, attracting even former NBA players. Other European leagues, such as Spain's ACB, can also offer competitive salaries, with players like Nikola Mirotic earning $5.4 million per year.
While the financial rewards of playing overseas basketball can be significant, it's important to consider the varying factors that influence salaries, such as the league's reputation, the player's skill level and experience, and the country's economic situation. Additionally, players should be mindful of tax obligations, which can vary depending on their country of residence and the length of their stay.
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Taxes on tournament salaries
While there is limited information on the specific taxes paid on tournament salaries, there are a few key points to note regarding taxes and salaries in the NBA. Firstly, the NBA has a complex financial structure with a soft salary cap, allowing teams to exceed the cap through various exceptions. This is different from other North American sports leagues, which typically have a hard salary cap.
When it comes to taxes, the "jock tax" is a notable concept. The jock tax is imposed by most states and applies to athletes and staff who earn an income while visiting or working in that state. This means that they are subject to income tax in the state they are playing in or visiting, even if it is not their home state. The jock tax can be substantial, and the amount paid depends on factors such as the number of games played in a particular state, the total annual compensation of the individual, and the income tax rate of the non-resident state.
In addition to the jock tax, NBA players and staff are also subject to federal income tax and, depending on the state they reside in, may also be subject to high state income taxes. These taxes can significantly reduce the net take-home pay of athletes and staff.
It is important to note that the tax implications are not limited to athletes alone. Individuals who work with sports teams in various capacities, such as trainers, coaches, and physicians, and who travel to different states, may also be subject to the jock tax and other tax regulations.
While the focus is on tournament salaries, it is worth mentioning that NBA players' salaries can vary widely. The average NBA salary is over $10 million, but this can range from less than $3 million to over $50 million. Playoff bonuses further contribute to players' earnings, with the payout for the NBA champion experiencing a significant boost in recent years.
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Salary caps
The National Basketball Association (NBA) has a salary cap in place to control costs and benefit parity. This cap is the total limit on the amount of money that teams are allowed to pay their players. The salary cap is subject to a complex system of rules and exceptions and is calculated as a percentage of the league's revenue from the previous season.
The NBA has a soft salary cap, which means that teams are allowed to go over the cap but will be subject to reduced privileges in free agency. In contrast, hard salary caps, which are in place in half of major American leagues (NFL, NHL), forbid teams from going above the cap at all.
The salary cap is defined by the league's collective bargaining agreement (CBA), which is an agreement between the league and the players' union. The CBA also ensures that players receive their share of the basketball-related income (BRI) by requiring teams to spend 90% of the salary cap each year. The CBA is renegotiated periodically, resulting in changes to the specific calculations and percentages used to determine the salary cap and player salaries.
The salary cap for the 2024-25 NBA season is set at $140.588 million. This is an increase from the 2022-23 season, when the cap was $123.655 million. The salary cap is expected to continue to vary in future seasons based on league revenues.
In addition to the salary cap, the NBA also has a minimum team salary that teams are required to spend. For the 2022-23 season, the minimum team salary was set at $111.290 million.
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Player contracts
NBA Player Contracts:
In the National Basketball Association (NBA), the average salary for players is more than $10 million per year, with top players earning significantly more. For example, Stephen Curry's salary is reported to be $55.8 million. However, it is important to note that NBA players' salaries are subject to taxes, which can result in a loss of roughly half of their earnings. Additionally, NBA players' salaries can be impacted by playoff performance. While teams do not earn additional money for the play-in tournament, they can earn more for each round they advance in the playoffs, with bonuses increasing at each stage.
Overseas Basketball Player Contracts:
For players aspiring to join the NBA or seeking alternative opportunities, there are professional basketball leagues all over the world that offer competitive salaries. The salaries vary depending on the region and the league's level of competition. In Europe, players in the highest-level leagues can expect to earn anywhere from $60,000 to $500,000 per season. Similarly, certain Asian countries like Japan and South Korea offer salaries ranging from $120,000 to $400,000 per season. China stands out as the highest-paying country outside of the US, with average salaries ranging from $1,000,000 to $3,000,000 per year. It is worth noting that one advantage of playing overseas is that teams typically cover the taxes on players' incomes, resulting in a more predictable contract value.
WNBA Player Contracts:
The Unrivaled basketball league, a new 3-on-3 women's basketball league, has set a target average salary of $222,222, which exceeds the regular maximum contract of $214,466 for the 2025 WNBA season. This league is based in Miami and consists of six teams with 36 players in total. The league emphasizes its commitment to compensating players appropriately and creating generational wealth for women in sports.
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Frequently asked questions
NBA players have the highest salaries in U.S. pro sports. The average NBA salary is more than $10 million, with Stephen Curry leading at $55.8 million. Teams do not earn anything beyond their regular-season salaries for the play-in tournament, but they earn more for each round they advance during the playoffs.
The salaries of overseas basketball players vary depending on the country and league. In Europe, salaries can range from $60k to $500k per season. In Asia, Japan and South Korea offer $120k to $400k USD per season, while China offers an average of $1 million to $3 million USD. Other parts of the world pay between $2k to $20k USD.
The new 3-on-3 women's basketball league, Unrivaled, has a total salary pool above $8 million, with an average salary of $222,222. This exceeds the regular max contract of $214,466 for the 2025 WNBA season.
