Paul George, a nine-time NBA All-Star for the Philadelphia 76ers, has been suspended 25 games without pay by the NBA after violating the league’s anti-drug program.
The suspension began January 31, 2026.
George will return around late March with only about 10 regular-season games left.
He is losing roughly $11.7 million of his roughly $51.7 million salary this season because of the missed games.
But beyond the headlines about his absence on the floor, the financial implications for the 76ers extend deep into salary cap and luxury tax mechanics.
💰 How NBA Suspensions Affect Team Payroll
Under NBA rules, when a player is suspended without pay:
The money he forfeits does not count against the team’s salary cap or luxury tax total in the same way as fully vested salary would.
A portion of that forfeited amount is used to calculate luxury tax credits for the team.
In short: the team saves real cash and cap space impact because the suspended player’s salary isn’t fully counted while he is inactive.
📉 The Luxury Tax Benefit for the 76ers
The luxury tax — a steep penalty on teams that exceed the NBA’s soft salary cap — can be extremely expensive for teams like the 76ers that carry high payrolls.
Thanks to George’s suspension:
🔹 Philadelphia was about $7 million over the luxury tax line before the suspension.
🔹 Because George forfeits salary and the team receives luxury tax credit on that forfeited amount, they will effectively save over $5 million in luxury tax payments.
🔹 That brings the 76ers to roughly $1.3 million above the tax line — far closer to escaping the tax entirely.
This matters because luxury tax payments are out-of-pocket dollars team owners have to pay each year for being above the threshold — on top of the player salaries themselves.
🪙 Meaningful Savings for Ownership
For a franchise like the 76ers:
☑️ Direct Savings
The team avoids paying extra luxury tax dollars beyond what they owe now.
That could save millions of dollars this season alone.
☑️ Roster Flexibility
Being closer to or under the tax line gives the team more flexibility to retain players or make strategic trades without being buried by penalties.
It also makes it easier to avoid repeat offender tax penalties, which apply if a team is over the luxury line multiple years in a row.
🧠 So Yes — It Does Save Money
Despite being a serious on-court blow, Paul George’s suspension works out financially — at least temporarily — for the 76ers:
✅ George loses salary they don’t have to pay in full.
✅ The team gets tax credits tied to that lost salary.
✅ They reduce luxury tax obligations that would otherwise bite the ownership.
🏁 Final Thought
From a basketball perspective, losing George’s production for 25 games is unquestionably a challenge for Philadelphia’s playoff hopes.
But from a financial and roster construction standpoint, the suspension provides an unexpected relief valve under the cap — reducing punitive tax costs and giving the 76ers some wiggle room at one of the NBA’s most critical seasons of the year.
