In a momentous victory over the Miami Heat in Game 5 of the NBA Finals, the Denver Nuggets won their first-ever championship in 47 years, setting a new record. Leading the way was Nikola Jokic. Jokic did not receive the NBA MVP award for the first time in three seasons. However, his contributions to Denver’s successful season earned him the rightful title of Finals MVP. The team amassed an impressive record of 10 victories in their last 11 postseason games!

However, amidst all the celebrations, he also has some worrying to do. According to reports, the player will lose $1,400,000 to the federal government. And the cause? Michael Jordan!

Nikola Jokic set out to lose a significant chunk of money

One cannot overestimate Jokic’s contribution to the Nuggets’ championship run. The 6-foot-11 Serbian had already solidified his place among the league’s elite players, earning him back-to-back MVP awards for 2 years.? To realize a long-held ambition for the Nuggets and their devoted fan base, Jokic lifted the Larry O’Brien championship trophy at the end of the 2022?2023 season.

Their victory was celebrated by many including Magic Johnson and Barack Obama. Barack Obama even congratulated the team for their victory! He tweeted, “Congrats to the Denver Nuggets and the remarkable finals MVP Nikola Joki? for bringing home the franchise?s first NBA Championship!” Now that the Nuggets have won the championship, they will now make their way to the White House to celebrate their victory.

The Denver Nuggets wanted to honor Jokic’s achievements after his second MVP season. They did so by awarding him a staggering 5-year, $272 million contract extension in the 2022 off-season. Despite his successes, Jokic is currently experiencing a big financial setback after succumbing to the influence of basketball great Michael Jordan.

So, what did Jordan do?

Although the mention of Jordan in this context can create some questions, his involvement is a result of his ownership of the Charlotte Hornets. Jokic’s salary is heavily impacted by the fact that North Carolina, where the Hornets are situated, has one of the highest state income tax rates in the country.

Professional athletes are liable to various tax rates based on the states in which they participate. Jokic, who has played against the Hornets in North Carolina for a sizable amount of his career, is consequently subject to the state’s high-income tax rate. A sizeable percentage of his income, including his salary and championship bonuses, will be subject to high taxes.

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Another fascinating fact is the history of the ‘jock tax’ that has something to do with Michael Jordan himself.

Michael Jordan’s revenge

Jock tax has its beginning with Michael Jordan. It was the year 1991. The 1991 NBA Finals between the Los Angeles Lakers and the Chicago Bulls saw the Bulls win, led by Jordan. However, following the victory, the California state government levied state income taxes against the Bulls. In retaliation to California imposing state income taxes on the Chicago Bulls, Illinois promptly passed its own legislation. Now, it is popularly known as ‘Michael Jordan’s Revenge.‘ This ground-breaking legislation intends to charge players and team personnel who traveled to Illinois taxes.

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And as for Jokic, he will be required to pay the Jock Tax of $1.4 million. Jokic’s net income will be roughly $24.23 million after deducting taxes. This sum amounts to about 50% of his whole arrangement.

Even after paying a sizable sum in taxes, Jokic will continue to earn more than $50 million every year. This is until the end of the 2027?2028 season. It is safe to conclude that Jokic’s financial condition is stable with such a hefty contract.

Now, let the celebrations continue!