Report: Warriors project at least $100 million revenue increase with new arena next season

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The Warriors’ player costs this season are in line to be about $195 million (about $145 million in salary, about $50 million in luxury tax).

If they re-sign Kevin Durant and Klay Thompson to max salaries, keep everyone under contract, sign their own draft picks and fill the rest of their roster with minimum-salary free agents, the Warriors’ spending on players next season would project to hit about $355 million (about $173 million in salary, about $182 million in luxury tax).

But maybe Golden State can afford it.

Brian Windhorst of ESPN:

Internally, the Warriors project a nine-figure increase in revenue when they move into the Chase Center next season, sources said.

The Warriors already make so much money on their home games. That’s a whopping increase – one that could alone increase the league-wide salary cap a couple million dollars.

But this figure doesn’t say how much more money will reach Golden State ownership. Revenue differs from profit. The Warriors could have greater expenses, including revenue-sharing obligations, in their new arena.

Still, it’s hard to imagine this won’t be a windfall for the Golden State, one that could go a long way not just in affording stars but also keeping complementary players like Andre Iguodala and Shaun Livingston.

The salary cap promotes competitive balance. But big-spending teams still have an advantage.