Dec 8, 2012, 9:30 AM EDT
The lockout that shortened the 2011-12 NBA season was about money above all else. The owners were willing to scrap the season if they didn’t secure a much larger share of revenue in the new collective bargaining agreement, and that’s exactly what they were able to do, even if it took holding the players and the fans hostage for a while to get that accomplished.
While helping the league secure a more parity-driven system that focused on competitive balance wasn’t the ultimate goal, the new payroll tax system put into place that will take effect at the conclusion of the 2014-15 season may eventually cause that to be the case.
Teams like the Miami Heat, for example, may simply not be able to afford to keep LeBron James, Dwyane Wade, and Chris Bosh together to make multiple runs at the title, or, at the very least, they may not be able to surround them with anything more than minimum-salaried players.
As a repeat taxpayer, the Heat will be facing the highest incremental tax rates in NBA history. If, for example, the luxury-tax threshold is established at $75 million — a highly optimistic gain of roughly $5 million from this season — the Heat could be faced with a tax bill approaching $48 million. In total, they would be paying $141.3 million for 12 players.
“They’re going to have to break up their team,” predicted a rival general manager who has done the math.
Unless the NBA’s financial circumstances improve over the next couple of years, Arison will be faced with two unhappy choices: The Heat could run a big deficit in 2014-15 to pursue the championship, or he could break up their winning roster by way of trades, amnesty or by not re-signing James, Wade or Bosh, should they exercise their options to become free agents in 2014.
Thomsen’s piece breaks this all down in much more detail, so it’s definitely worth checking out in its entirety.
The bottom line, though, is this: We can expect the league’s superstar talent to spread out a little bit more in the coming seasons, as opposed to congregating in the league’s largest markets that have with the best weather and the brightest nightlife, as we’ve seen in recent years.
We’ve already seen teams begin to plan for this; New York didn’t want to sign Jeremy Lin to a large contract because of tax ramifications, and the same was true for Oklahoma City where James Harden was concerned.
The repeater-tax may not have been at the top of the list of demands when the teams went to the bargaining table with the Players’ Association last fall. But it may end up slowly having the affect that fans desire, which is to give more teams in more cities a legitimate shot at winning a title, thanks to the dilution of talent that will follow once those higher financial penalties for exceeding the salary cap are put into place.
Aug 28, 2014, 8:45 AM EDT
Doesn’t matter who didn’t show up, the guys that did make Team USA one of two teams with a legit shot at gold.
Aug 28, 2014, 8:00 AM EDT
For a third point guard signed for the league minimum, this is a nice pickup. Not thrilling, but nice.
Aug 28, 2014, 12:20 AM EDT
Dexter Pittman, Greg Stiemsma, Daniel Orton, Bobby Brown, Toney Douglas, Ben Hansbrough and Malcolm Lee try out
Aug 27, 2014, 11:20 PM EDT
NBA news you definitely didn’t expect to read today
Aug 27, 2014, 10:20 PM EDT
Rockets guard continues to draw praise after offseason of petty comments
Aug 27, 2014, 9:20 PM EDT
Warriors guard might be bit biased when it comes to rating 3-point shooters
Aug 27, 2014, 8:20 PM EDT
Jason Kidd at it again
Aug 27, 2014, 7:22 PM EDT
Waiters on the possibility of playing with Love, LeBron James and Kyrie Irving: ‘I’ve got to destroy my opponent’
Aug 27, 2014, 6:30 PM EDT
Dallas owner goes out of his way to compare his rival Daryl Morey’s
Aug 27, 2014, 5:44 PM EDT
Miami is now taking Knicks rejects
Aug 27, 2014, 5:00 PM EDT
Former No. 2 remains unsigned after disappointing season with Heat
Aug 27, 2014, 4:22 PM EDT
New contract with Clippers makes Rivers the NBA’s highest-paid coach
Aug 27, 2014, 3:41 PM EDT
Kulagin, 22, went undrafted and is now an unrestricted free agent
Aug 27, 2014, 3:00 PM EDT
Williams went 0-9, and stopped shooting.
Aug 27, 2014, 2:22 PM EDT
Go back to July 1 and consider the possibility of LeBron James and Kevin Love playing for Cleveland this season
Aug 27, 2014, 1:44 PM EDT
Embiid may have jumped the gun.
Aug 27, 2014, 1:02 PM EDT
Minnesota’s owner tried to point out some of Love’s flaws once the deal was done.
Aug 27, 2014, 12:21 PM EDT
Clippers owner Steve Ballmer calls keeping Rivers ‘one of my top priorities’
Aug 27, 2014, 11:46 AM EDT
Donald Sterling will try to embarrass the league going forward, but he will not ever own the Clippers again.
Aug 27, 2014, 11:09 AM EDT
Goes against public perception.
- World Cup preview: No Durant, no problem USA still one of two teams with legit shot to win gold 0
- Cavaliers sold Kyrie Irving on contract extension with LeBron James-Kevin Love plan 32
- Kevin Love says Timberwolves owner should focus on his own team following trade to Cavaliers 33
- Iman Shumpert excited to play in triangle offense because he won’t just have to stand in the corner 9
- Timberwolves owner: Kevin Love might regret trade because he’ll be third banana with Cavaliers 48
- Anthony Davis and Kenneth Faried lead Team USA in final World Cup tune-up 20
- Thunder trade Hasheem Thabeet to 76ers 37
- From late-arriving to a LeBron James favorite, Kevin Love comes full circle 17