If the new EuroLeague luxury tax rules were applied for this season, the Greek powerhouses Panathinaikos and Olympiacos would be in the toughest position, paying the biggest amount. Overall, 6 different teams would need to pay the luxury tax.

Credit: BasketNews illustration
Credit BasketNews illustration

On Wednesday, the EuroLeague announced that the luxury tax will come into effect in the upcoming 2025-26 season.

Therefore, BasketNews calculated which teams and how much they would have to pay in luxury tax if the rules were valid this season.

Disclaimer: The suggested luxury tax amounts for each team include a big margin of error due to the complexity of the luxury tax rules, which involve many variables. Additionally, accurately calculating a team's potential luxury tax requires detailed contract information for every player, which may also involve a margin of error.

This list is intended for entertainment purposes and to provide an approximate estimate of how much teams would owe in luxury tax if the rules were already in effect for this season.

Moreover, having a clear reference point, the clubs can allocate budgets and signings differently for the upcoming season, and it is likely that they would find ways of not exceeding the threshold.

We also kindly ask other media outlets not to quote the following numbers.

BasketNews took each team's payroll from the 2024-25 season and applied the luxury tax rules.

Luxury tax bill with BRL rules

After covering all the details, let's dive into the most interesting part.

Olympiacos Piraeus and Panathinaikos AKTOR Athens are the teams that would be in the toughest spot regarding the luxury tax. 

Speaking of Panathinaikos' luxury tax, the Greens would be required to pay a staggering €

Edvinas Jablonskis
Edvinas Jablonskis began his basketball coverage career in 2017. Starting as a Daily Writer for BasketNews.lt, he steadily climbed the ranks and became a Daily Editor for BasketNews.com in 2021, a position he continues to hold. Over the years, Jablonskis has covered multiple EuroLeague Final Fours and international tournaments, including the FIBA EuroBasket, FIBA Basketball World Cup, and FIBA Olympic Qualifying Tournament.
Donatas Urbonas
Donatas Urbonas
Senior Staff Writer
Donatas Urbonas is an award-winning Lithuanian basketball journalist, recognized as the best sports journalist in Lithuania in 2016 and the top basketball journalist in 2018. A Vilnius University journalism graduate, Urbonas has reported on major global sports events, including the Rio 2016 and Paris 2024 Olympics, FIBA World Cups, EuroBaskets, NBA Summer League, and NBA Draft.
Comments:
So - this method for financial fair play makes sense to you. Teams with the same budget (say PAO VS Real).

- They both have the same budget ($20.5)

- PAO with more basketball revenues than Real (tickets, TV rights, sponsors etc), who gets funds from the football team

Therefore, the % of the budget funded by its own revenue is higher for Panathinaikos.

Nevertheless, PAO would pay $3-6m luxury tax and Real would not pay any luxury tax...

The financial fair play should be based on the revenues of the club and how far they can overspent them using external funds (shareholders, non-basketball related funds, governments, .. "unknown sources").

Euroleague should take example from UEFA Leagues and how they manage a very successful product in Europe.
2025-03-07
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