We don’t know LeBron’s decision just yet, but we do know one thing: he’s going to lose a lot of the money from his contract. James had a $33 million deal with the Cavs this past season. By the end of the year, he had only made about half of that, thanks to taxes, fees, and other costs. Here’s a look at where all of that money went. LeBron spent $14 million in taxes alone ($11.9 million in federal and $2.1 million towards state taxes). He also paid $950,000 in agent fees and poured another $18,000 into his 401(k). The NBA has an escrow system, where players pay 10% of their salaries to balance the basketball-related income that gets split between the players and owners. James spent $3.3 million in the escrow this year, though he did earn some money back because the league’s revenues were higher than the forecasted numbers. In total, LeBron took home an estimated $16.7 million. Hardly anything to scoff at, though it’s pretty spectacular how much money athletes put towards taxes. Depending on where he signs this summer, James has a chance to earn more money in a single season than any NBA player before him. Uncle Sam is already licking his chops in anticipation.
