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Tuesday And-1 links: The new NBA luxury tax and you

Jun 26, 2012, 4:41 PM EDT

Oklahoma City Thunder James Harden durin Getty Images

Here is our regular look around the NBA — links to stories worth reading and notes to check out (stuff that did not get its own post here at PBT) — done in bullet point form. Because bloggers love bullet points.

• There’s a great post from Mike Prada at SBN that starts to explain why traditional big-spending teams — Lakers, Knicks, Celtics, Mavericks — are making moves now to lower payroll, because they are scared of the increased taxes that will kick in starting in 2014. He has a great paragraph explaining the implications:

As an exercise, consider the Los Angeles Lakers. Last year, they had a payroll of nearly $86 million. Under the old system, which was in effect, the Lakers owed just under $16 million in luxury-tax fees. Under the new system, though, they would have owed $7.5 million for the first $5 million over the tax, $8.75 million for the next five million, $12.5 million for the next five million and $3.25 million for the final $1 million. Right there, that’s a $32.25 million tax bill. In addition, since the Lakers were over the tax in four of the past five years, they would have owed an additional $5 million at each juncture. That leaves them with a tax bill of over $52 million for being $16 million over the threshold.

• Despite the future tax implications, James Harden expects to sign a new contact with Thunder this summer. Nobody doubts he will, but there is a big bill coming for the Thunder down the line and they will make changes.

• My take on those last two notes — the owners fought hard to have this heavy tax and flattening of payrolls in the NBA, thinking it would flatten out the salary levels (it will) and give more teams a chance. To force some parity. But what it will do — whether you built your team like the Heat or Thunder did — is force you to break it up sooner or have stars with no real talent around them. Is that good for the league? Especially a league that sells stars? I think it backfires.

• Tyler Zeller talks about going through the workout process leading up to the draft with Zach Lowe at SI. And they talk fashion.

• As expected, the Blazers extended a qualifying offer to Nicolas Batum. Other teams like him but the Blazers will not let him go.

Tyreke Evans has told the Sacramento Kings he doesn’t want to play the small forward next year. The smart money is he doesn’t play for the Kings next year — his name comes up in all kinds of trade rumors.

• As was expected, San Antonio Spurs guard Patty Mills has been named to the Australian Olympic basketball team.

• However, Bobcats big man Byron Mullens will not play for Great Britain in the Olympics due to a toe injury.

• LeBron is back being active on twitter and has more followers than you.

Taj Gibson‘s birthday cake was a picture of him dunking on Dwyane Wade. Nice.

• With Danny Ferry signing on to be GM of the Hawks, the 76ers are scaling back their search for the guy who will take over for Rod Thorn.

• Danny Ainge talks about how the Celtics overachieved this year. His word, not mine.

• A Q&A with Kareem Abdul-Jabbar.

• By the way, Thorn said the 76ers would be drafting the best player available regardless of position. Every team should do this (or use a tier system). Drafting for need works in the NFL, but the NBA draft is a different animal.

Here’s a breakdown of how the appeal of the arbiter’s ruling on the Jeremy Lin/waiver/Bird rights ruling will go down. Big implications for the Knicks offseason on the line.

• Thunder co-owner Aubrey McClendon is having some business troubles.

RIP to Ted Luckenbill, the former University of Houston college star who played in Wilt Chamberlain’s 100 point game.

  1. 00maltliquor - Jun 26, 2012 at 5:32 PM

    C’mon Lakerrrss!, What’s an extra $52 million in taxes to a team that makes $200 million on a television deal alone, not including everything else they make money off of being the worlds favorite team!? Stay competitive and keep winning championships and the bill will take care of itself, C’moooon, you can do it!

    • caseybojangles - Jun 26, 2012 at 6:24 PM

      there’s also revenue sharing between teams and players of all basketball related income as well between teams. all that laker money doesn’t stay with the lakers. i guess that explains why you aren’t the GM

      • 00maltliquor - Jun 27, 2012 at 1:08 AM

        I knew about revenue sharing when I was doing the post bro, I was being facetious. Thanks for taking the wind out my sails…

  2. 00maltliquor - Jun 26, 2012 at 5:51 PM

    And “pairity” sucks d***. Look what it’s gonna do to the poor small market Thunder! They actually did things the “right” way with smart drafting and they’re going to eventually get penalized for it!?? How freaking ridiculous. I like that team together, they’re very exciting with Durant-Westbrook-Harden-Ibaka.

    I like Harden but no one wants to see him leave to be the 1st or 2nd option on a team elsewhere. That’s Joe Johnson leaving the Suns to go to Atlanta allllllllll over again!! (Remember how fun a Nash-Johnson-Marion-Stoudemire team was to watch?)

    Eventually there will be teams with only 2 players that you want to see and pay for expensive ass, slightly below nose-bleed seats and a bunch of scrubs no one cares about, and it’s the day you go and one of the two stars is hurt that day or out with a flu. GTFOH!

    PS.- F*** David Stern and his ruining of this league!!! Next on his list of crap to put the NBA under is that stupid “as-soon-as-the-ball-touches-the-rim-you-can-goaltend” international bullshit and his dumb USA 23 and under ideas. STOP RUINING OUR NBA YOU SNAKE!!!!!!!!

  3. jeremymartini - Jun 26, 2012 at 7:23 PM

    Exactly who wants to play for the Lakers? Who wants to play with Bryant? Name one Big Name Free Agent that has chosen to sign with the Lakers since Bryant has been there. As long as Bryant is there no one will be coming. The ones that do play for the Lakers now want to be traded due to his arrogance. The days of trading old players, salaries, & other teams dumping their star players to the Lakers is over. It’ll be 1992-1995 all over again for awhile while they dump salaries, try & get mid level talent, & Bryant will be demanding a trade …again after another first round knock out.

  4. trickybastard - Jun 26, 2012 at 7:29 PM

    ” Tyreke Evans has told the Sacramento Kings he doesn’t want to play the small forward next year. The smart money is he doesn’t play for the Kings next year — his name comes up in all kinds of trade rumors”

    This is incorrect on so many levels. First, the trade rumors come up from BLOGS. speculation over the course of a period of time all of a sudden = validity?? Rediculous. Secondly, Tyreke is not unhappy. Third, he wont be traded.

  5. mcjon22 - Jun 27, 2012 at 1:05 AM

    Send Tyreke Evans to Chicago for Loul Deng. Everyone gets what they want except, well, Deng who would probably milk that wrist surgery and come back after D-Rose does.

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