Nov 28, 2011, 8:06 AM EST
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.
Jan 29, 2015, 8:00 PM EST
Damian Lillard, Kyle Korver, DeMarcus Cousins and more.
Jan 29, 2015, 7:27 PM EST
DeMarcus Cousins and Damian Lillard were left off in the West.
Jan 29, 2015, 6:42 PM EST
A promotional video hyping the matchup features plenty of players, but Kevin Love is noticeably absent.
Jan 29, 2015, 6:00 PM EST
Mitch Kupchak expects Kobe to return next season.
Jan 29, 2015, 5:20 PM EST
Reserves are announced tonight.
Jan 29, 2015, 4:39 PM EST
Brooks may last the season, but may not if Thunder miss the playoffs. Jackson, meanwhile, has been marginalized ever since Dion Waiters was acquired.
Jan 29, 2015, 3:56 PM EST
Wade may be selected as an All-Star reserve Thursday night, but wouldn’t play in the midseason exhibition if the timeline holds true.
Jan 29, 2015, 3:25 PM EST
“I looked down to see my legs, and I saw my bone. The second I saw my bone, I just lost it.”
Jan 29, 2015, 2:45 PM EST
Jan 29, 2015, 2:02 PM EST
See Andrew Wiggins’, Shabazz Muhammad’s and Dante Exum’s
Jan 29, 2015, 1:28 PM EST
Timberwolves enjoying rare win
Jan 29, 2015, 12:50 PM EST
Oklahoma City expected to deal Jackson
Jan 29, 2015, 12:14 PM EST
Spurs guard completes field
Jan 29, 2015, 11:41 AM EST
Thunder star is ridiculous(ly awesome)
Jan 29, 2015, 11:03 AM EST
A mutual parting after season wouldn’t be a surprised
Jan 29, 2015, 10:19 AM EST
‘Person close to Durant’ cites Thunder star’s fondness of Carmelo Anthony
Jan 29, 2015, 9:43 AM EST
Rockets center requires further testing
Jan 29, 2015, 9:06 AM EST
Happy times for Cavaliers. How long will they continue?
Jan 29, 2015, 8:30 AM EST
Sidney is the poster child for the can’t miss prospect that missed.
Jan 29, 2015, 8:00 AM EST
At this point there have been no charges or arrests.
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