Jul 06

Oklahoma’s financial cost in losing Kevin Durant

I know that we as the Thunder nation are hurting over the loss of Kevin Durant as a player on the OKC team. But the impact of his leaving will affect more than just NBA fans.

As Oklahoma is an income tax state, the loss of Kevin Durant will result in an additional loss in revenue to our state coffers. A quick look at the estimates of the taxes he pays shows that this will not be an insignificant amount, either.

First, we would assume that he basically had to pay the maximum Oklahoma tax rate of 5.0% on all of his earnings.

His salary for actually playing basketball: $20,160,000. Loss in Oklahoma taxes of $1,008,000.

His endorsements this past year were estimated at $36,000,000. Loss in OK taxes of $1,800,000.

Estimated loss in revenue other businesses (ex. KD Restaurant) ~ $12,000,000. Loss in OK taxes of $600,000.

Just these added together will be a loss of about $3,400,000. Even this would go a long way towards teacher salaries (average in OK ~ $44,300), or towards roads, bridges, jails and other public services.

Additionally, we could assume that there will be a loss in city sales tax revenues in OKC with loss of sales of the merchandise with “35″. There may also be a loss of revenue in other OKC restaurants and hotels if the attendance at games decreases. Further, there could be a loss on taxes that the owners pay if profits for the team decrease. All of this just goes to show that professional sports are a big business and even if you don’t watch those sports and have no interest in them, it may still affect the services you receive from the state when the sport or one of the big players chooses to leave.