The NBA includes a contractual clause called a trade kicker to safeguard players during trades financially. Teams agree to this clause, which is often capped at 15% of a player’s annual salary, to deter them from trading players by increasing the cost of the transaction. When a team trades a player with a trade kicker, the clause guarantees that the player receives the additional bonus. However, players can choose to waive this bonus, typically to facilitate a trade or help their new team manage its salary cap.
In a surprising blockbuster trade, the Los Angeles Lakers sent Anthony Davis to the Dallas Mavericks in exchange for Luka Doncic, Maxi Kleber, and Markieff Morris. Additionally, the Mavericks acquired Max Christie and a 2029 first-round pick. Despite Davis having a $6 million trade kicker in his contract, he chose to waive it, enabling the Mavericks to stay under the luxury tax threshold. By foregoing this substantial amount, Davis demonstrated his commitment to his new team and provided the Mavericks with increased financial flexibility.
Davis’ decision to waive his trade kicker helped Dallas significantly, as they were initially $5.1 million over the luxury tax but, after the waiver, found themselves $628,000 below it. This move allowed the Mavericks to maintain financial flexibility and potentially add another piece to their roster before the trade deadline. Davis follows a precedent set by past players such as Carmelo Anthony, who waived his $8.1 million trade kicker when traded to the Oklahoma City Thunder in 2017.
The Impact Of Davis Waiving His Trade Kicker
Waiving his trade kicker was not just a financial decision but also a strategic move for Anthony Davis and the Mavericks. By giving up his $6 million bonus, Davis indirectly benefited from the move to Texas, where the absence of state income tax will offset some of his lost earnings. In California, where he previously played, state income tax rates can go as high as 13.3%, making Texas a more favorable financial destination for high-earning athletes.
From a team-building perspective, Davis’ decision ensures the Mavericks retain cap flexibility to sign additional players to potentially bolster their lineup. After Luka Doncic’s departure, Dallas needs another playmaker, and the extra salary cap space could be instrumental in securing that missing piece. The Mavericks, now 26-25 and positioned as the eighth seed in the Western Conference, can use this financial relief to improve their roster ahead of the trade deadline on February 6.
Moreover, Davis’ willingness to sacrifice his trade kicker may signal his long-term commitment to Dallas. Reports suggest that Davis is open to signing an extension with the Mavericks, especially given their roster construction. The presence of traditional centers like Daniel Gafford and Dereck Lively II aligns with Davis’ stated preference to play as a power forward rather than as a center. With both big men signed through the 2025-26 season and the Mavericks holding a club option on Lively for 2026-27, Dallas has a structure in place that could appeal to Davis for the upcoming years.
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