Why Warriors’ Stephen Curry just lost out on NBA-high $5.1 million in salary

Stephen Curry of the Golden State Warriors will lose $5.1 million from his 2024-25 salary of $55.8 million due to the NBA's escrow system. This adjustment is not related to a new contract or sponsorship but stems from the league's mechanism to maintain the 51-49 split of basketball-related income (BRI) between players and team owners as per the collective bargaining agreement.

The NBA sets aside a portion of player salaries (10% last season) in an escrow fund. After final accounting, players receive only a small fraction back, especially when BRI is lower than expected. This season's BRI reached a record $10.25 billion, but playoff revenue was impacted by smaller-market teams advancing deep and local media rights issues.

Other high-earning players like Joel Embiid, Nikola Jokic, and Kevin Durant also faced significant salary reductions ranging from $4.5 to $4.7 million. However, Curry's $5.1 million loss is the largest individual hit, highlighting the escrow system's substantial effect on the league's top contracts.

The escrow system, introduced in 1999, has evolved. During prosperous times in the mid-2010s, players often received full refunds or even extra payouts when revenues exceeded projections. Following the COVID-19 pandemic, the league temporarily increased withholdings and carried losses into subsequent seasons.

The long-term financial outlook appears positive. With the NBA securing new $77 billion broadcast deals, the salary cap is expected to continue rising. Players are projected to receive full escrow payouts by the 2025-26 season.

Despite being the league's top earner and significant off-court income (reportedly nearly $100 million), Curry is subject to this escrow reduction, illustrating the NBA's revenue-sharing mechanism impacting even its highest-paid stars.