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The NBA's most profitable firing: Clippers cut Eric Gordon and save 110 million in taxes

Eric Gordon, a sharpshooter on the Los Angeles Lakers' radar, may have become the most profitable player in the NBA by being responsible for saving the Los Angeles Clippers more than 100 million dollars.

The 34-year-old veteran shooter, who also has interest from the Phoenix Suns, Memphis Grizzlies, Minnesota Timberwolves, Portland Trail Blazers and Milwaukee Bucks, was cut by the Clippers.

In his 15 NBA seasons, in which he has played for the Clippers, Hornets, Pelicans and Rockets, Eric Gordon has averaged 16 points, 2.4 rebounds and 2.8 assists.

Last season with the Clippers he averaged 11 points in the 22 games he played.

The Clippers' Eric Gordon trade to save 110 million in: The numbers

Gordon came to the Clippers on February 9, 2023 in a trade in which they traded away Luke Kennard and John Wall, and traded a 2023 draft pick that allowed them to select Cam Whitmore.

With this transaction, the Clippers lowered their tax bill from 169 million to 59 million.

With Gordon's contract on the books, they would have had a total payroll of approximately 204 million, which is 39 million above the 165 million tax threshold.

Bobby Marks explained on ESPN that with Gordon's contract on their books the Clippers would have had a total payroll of approximately 204 million, which is 39 million over the 165 million tax threshold. And for every 5 million in salary above the tax bracket, the tax rate increases.

The U.S. outlet analyzed dollar for dollar the tax bill the Clippers would have had with Gordon.

"The first 5 million above the tax bracket would have cost the Clippers 12.5 million (2.50 on the dollar), the second 5 million would have cost them 13.75 million (2.75 on the dollar), the third would have cost them 17.5 million (3, 50 per dollar) , the fourth would have cost them 21.25 million (4.25 per dollar), the fifth would have cost them 23.75 million (4.75 per dollar), the sixth would have cost them 26.25 million (5.25 per dollar) and the seventh would have cost them 28.75 million (5. 75 per dollar). Their last 4 million above tax level would have cost them 25 million (6.25 on the dollar). Add all that up, and it's 168.75 million.

However, remove Gordon's salary from the books and the Clippers are only 18 million above the tax threshold. That means eliminating much of the above paragraph. As it stands, the first 15 million above the tax will cost them 43.75 million (12.5 million + 13.75 million + 17.5 million) and the last 3 million above the tax will cost them 12.75 million. That adds up to 56.5 million.

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