Doncic s new contract is $165 million. How many are you actually getting? You may not believe it if you say it

Doncic is undoubtedly one of the hottest NBA stars today. Recently, he signed a three-year maximum salary renewal with a total value of $165 million. This news caused a huge sensation in the league.

Last season, Doncic immediately became the core of the team after being traded to the Lakers. Despite being eliminated in the first round of the playoffs, the Lakers management still promised to build a lineup around it. At the same time, the Lakers handed him a three-year maximum salary contract of $165 million, with an average annual salary of more than $50 million. The third year of the contract is reportedly a player option, which allows Doncic to re-sign a five-year, $417 million contract in 2028. However, after deducting various taxes and expenses, Doncic's actual income was far lower than the surface.

In the NBA salary structure, players' salary levels are affected by a variety of factors, including tax policies in the team's region. The Lakers are located in California, where tax policies are more unfavorable to high-income earners, with state taxes up to 13.3%. In addition, federal taxes can reach up to 37%, which means Doncic's salary will face higher tax pressure.

In addition to taxes, Doncic's salary will also be affected by broker commissions and affiliate custody fees. The commission of a broker is usually between 4% and 10% of the player’s annual salary, and based on Doncic’s $165 million contract, the commission may range between $6.6 million and $16.5 million. In addition, the league custody fee also accounts for 10% of the player's salary, which we can understand as the player's "pension", aiming to ensure the players' reasonable use of their salary and prevent financial risks.

Based on these factors, we can estimate Doncic's actual income. Assuming the federal tax rate is 37%, the state tax is 13.3%, the alliance custody fee is 10%, and the broker commission is 5% (take the intermediate value), then Doncic's actual income may be around $90 million, which is only about two-thirds of the actual amount. This estimate shows that although Doncic's contract amount is huge, the actual income received is greatly reduced due to various deductions.

Although Doncic's actual income is significantly affected by taxes and expenses, his business potential cannot be underestimated. Doncic's football skills, popularity and market influence make him a favored by many brands. His performance on the field and his expansion in the business field have helped to increase his overall income. Most importantly, the Lakers are located in Los Angeles, an international metropolis, and playing here will inevitably greatly enhance Doncic's commercial value.

Doncic's contract extension with the Lakers is undoubtedly the top contract in the league, but the actual income has shrunk significantly due to factors such as taxes, broker commissions and league custody fees. In fact, this phenomenon is common among NBA stars. When fans envy the huge annual salary of players, they also need to see the financial pressure and challenges they face behind them.