Nov 28, 2011, 8:06 AM EDT
Part of the reason we lost 480 NBA games this season is because a bunch of owners were pissed at the Lakers, Mavericks, Heat, Celtics and other owners willing to spend over the luxury tax. Small market owners wanted to tie the hands of the big spenders in the name of the mythical “competitive balance.”
They got their wish… but not right away.
The most punitive measures for big spending teams don’t kick in until year three of this labor deal, reports Ken Berger at CBSSports.com. So spend away, Buss family, you’ve got a couple more seasons before a bill comes due.
Luxury tax rates: The same dollar-for-dollar as in the previous CBA for the first two years. Starting in Year 3, the rates increase to $1.50 for the first $5 million over; $1.75 for $5-$10 million over; $2.50 for $10-$15 million over; $3.25 for $15-$25 million over; and an additional 50 cents for each additional $5 million (same as previous proposal).
Repeater Tax: A dollar-for-dollar additional tax for teams that are above the tax line for a fourth time in five years (same as previous proposal).
That means the tax is the same for two seasons and the repeater tax can’t hit a team until 2015 at the earliest. These are delayed bills that give today’s big spenders a chance to reduce salary — except they are all are already in a pretty good spot in a couple years.
To use the Lakers as an example, they currently have only $61 million on the books by the time the higher taxes kick in ($30 million of that goes to Kobe Bryant and $19.2 million to Pau Gasol). The Lakers will have time to bring their payroll to whatever level they deem reasonable (which will still be over the tax, just likely not in the $90 million range anymore).
Even the Heat, with their current big three and others roster, are at $71 million for the season the tax rates jump. They, too, will spend more but have time to prepare. That or ship Chris Bosh out.
In the short term none of these teams will not have as large a mid-level exception as others, but that is about the only new restriction on them for now. For the next couple years, it’s business as usual for the spenders.
Jul 3, 2015, 11:03 PM EDT
Hopefully Scott Skiles will play Harris this time.
Jul 3, 2015, 10:30 PM EDT
Curry is just that good.
Jul 3, 2015, 9:00 PM EDT
A big reason Jordan left L.A. to sign with the Mavericks.
Jul 3, 2015, 7:37 PM EDT
Beverley’s defense provides a perfect complement to James Harden.
Jul 3, 2015, 7:34 PM EDT
Rondo is not exactly going to space the floor for Cousins.
Jul 3, 2015, 7:10 PM EDT
They would make solid backups at a fair price.
Jul 3, 2015, 6:27 PM EDT
He is a good fit in the Rockets’ up-tempo system.
Jul 3, 2015, 5:15 PM EDT
She’s a San Antonio assistant coach
Jul 3, 2015, 4:31 PM EDT
Key for the Wizards is this is a one-year deal, so they save their cap space for a Kevin Durant offer next summer.
Jul 3, 2015, 4:00 PM EDT
This is a huge blow to the Clippers roster.
Jul 3, 2015, 3:40 PM EDT
This was expected, now the Knicks move forward with Robin Lopez.
Jul 3, 2015, 2:52 PM EDT
Solid deal in a vacuum, but in Sacramento…
Report: Knicks to sign Robin Lopez to four-year, $54 million contract (unless DeAndre Jordan changes his mind)
Jul 3, 2015, 1:58 PM EDT
More evidence Jordan won’t pick Knicks
Jul 3, 2015, 1:35 PM EDT
Washington could land David West
Jul 3, 2015, 12:07 PM EDT
Third year is reportedly a team option
Jul 3, 2015, 11:08 AM EDT
I doubt Sacramento is celebrating quite yet
Jul 3, 2015, 10:31 AM EDT
Brooklyn making most of a self-inflicted bad situation
Jul 3, 2015, 9:50 AM EDT
If LaMarcus Aldridge signs elsewhere, San Antonio makes a lot of sense
Jul 3, 2015, 9:14 AM EDT
So Knicks are probably getting Robin Lopez
Jul 3, 2015, 8:30 AM EDT
In this market even if these deals are misses, they are correctable ones.
- Report: Tobias Harris reaches four-year, $64 million extension to stay with Orlando 11
- Report: Rajon Rondo agrees to one-year, $9.5 million deal with Sacramento Kings 37
- Report: DeAndre Jordan agrees to four-year, $80 million deal to join Dallas Mavericks 49
- Report: Kings signing Marco Belinelli to three-year, $19 million contract 17
- Report: Knicks to sign Robin Lopez to four-year, $54 million contract (unless DeAndre Jordan changes his mind) 9
- PBT Extra: Free agent signings we didn’t love 6
- Report: Wes Matthews reaches agreement to join Dallas Mavericks 23
- PBT Extra: Five best free agent signings in the first days of free agency 11