Capital Efficiency: NBA Teams Making the Most of Their Payroll

ProFitX Staff – 10/25/22

Unlike some other professional sports, NBA franchises are required to operate under a salary cap. As such, these teams are built in a creative way, finding a balance between talent and cost.

During the 2022-23 season, the salary cap is roughly $123,655,000, which is a datapoint teams all around the league have to consider when making moves. Due to the NBA’s salary cap allowing teams to go over the maximum figure with a tax associated, it’s actually a soft cap which means teams can go all-in and pay a hefty penalty for a premium roster.

This season, there’s a few teams that are paying well above that salary cap figure, but justifiably so. As long as the money being distributed to the top-level players is a positive return on investment, it works out in the long run. This is especially true if a championship is won.

Let’s take a look at two teams that are in the top five of the NBA in payroll, but have a good chance to justify the expense by the end of the season. At the end of the day, winning takes spending money. Teams just have to spend it the right way.

Los Angeles Clippers:

Payroll: 191.95 million

Top Contracts – Salary (ProFitX Real-Time Value Projection)

  • Paul George – $42.49 million ($27.79 million)
  • Kawhi Leonard – $42.49 million ($8.39 million)
  • Norman Powell – $16.76 million ($14.93 million)
  • Marcus Morris – $16.37 million ($19.00 million)
  • Luke Kennard – $14.42 million ($15.92 million)
  • Robert Covington – $12.31 million ($16.81 million)
  • Reggie Jackson – $11.22 million ($33.81 million)
  • Nicolas Batum – $10.84 million ($17.34 million)
  • Ivica Zubac – $10.12 million ($18.44 million)

With the highest payroll in the league, the Clippers are an interesting team to dig into. Rather than building a “Big 3” like other contending teams of the past, Los Angeles has opted to go with depth.

Instead of having three superstars and a thin roster elsewhere, the Clippers built a team with two superstars and a plethora of highly impactful complimentary pieces. Kawhi Leonard and Paul George are among the best two-way players in the entire NBA, but have both battled with significant injuries over the past season or two. While there’s no question they’re incredible players, their performance value hasn’t been as high since they’ve been sidelined.

Outside of those two, the Clippers have seven additional players being paid at least $10 million. Based on the ProFitX real-time performance value projections, six of these seven complimentary pieces are set to be worth more than they’re being paid. With that in mind, the Clippers should be the top team in the league as it relates to capital efficiency this season if Leonard and George stay healthy. The star talent combined with the depth of the roster should make the hefty tax bill worth it.

Boston Celtics

Payroll: 170.12 million

Top Contracts – Salary (ProFitX Real-Time Value Projection)

  • Jayson Tatum – $30.35 million ($35.18 milion)
  • Jaylen Brown – $28.74 million ($32.10 million)
  • Al Horford – $26.5 million ($22.37 million)
  • Malcolm Brogdon – $22.6 million ($14.07 million)
  • Marcus Smart – $17.21 million ($23.82 million)
  • Derrick White – $16.89 million ($26.21 million)
  • Robert Williams – $10.94 million ($16.33 million)

Boston is in a unique situation given the two stars on the roster are on rookie max extensions. Due to the Celtics’ dynamic duo of Jayson Tatum and Jaylen Brown being young, they’re not yet on super max deals making upwards of $40 million per season.

This allows Boston to splurge on its other top rotation players. In fact, seven players on this season’s roster are making over $10 million.

With that in mind, Marcus Smart, Derrick White and Robert Williams are projected to drastically outplay their contract value during the 2022-23 season. When aggregating the salary of these top seven players, the Celtics are getting a fantastic return on investment.