The Sixers are among the teams that could face a steeper luxury tax penalty next season than originally projected, according to a report from ESPN’s Adrian Wojnarowski and Bobby Marks.

The NBA’s collective bargaining agreement can be quite convoluted, but the big-picture implications here for the Sixers are relatively simple.

Per the report, “China's decision to pull sponsorships and television coverage because Rockets general manager Daryl Morey tweeted support for Hong Kong protesters in October is believed to have cost the NBA anywhere between $150 million and $200 million.”

The salary-cap threshold has decreased from an initial $116 million estimate to $115 million, while the luxury-tax threshold has moved from a $141 million projection to $139 million.

Because the Sixers are currently locked into expensive contracts with Joel Embiid, Tobias Harris, Ben Simmons and Al Horford, they’re expected to pay the luxury tax next season.

“Yeah, there are definitely issues that come with that but I think if that’s what it takes to win, we’re going to do it,” managing partner Josh Harris told The Athletic’s Rich Hofmann in October. 

The $2 million drop in the luxury-tax threshold would lead the Sixers to be further over the tax line than they would have been with the original projection, thus leading to a greater penalty.

For the Sixers, the other notable impact is the rookie maximum extension Simmons signed this summer will pay him slightly less than first expected, since maximum contracts are a percentage of the salary cap.

 

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