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 30, 2015, 8:00 AM EDT
Cherry played for the Spurs’ Summer League team.
Aug 29, 2015, 11:00 PM EDT
Unfortunately, neither of them can defend anyone.
Aug 29, 2015, 9:30 PM EDT
Claver played two-plus seasons with the Blazers.
Aug 29, 2015, 8:00 PM EDT
The block happened in the Seattle Pro-Am game.
Aug 29, 2015, 6:30 PM EDT
All in one 15-minute video.
Aug 29, 2015, 5:00 PM EDT
If he develops a consistent three-point shot, it’s over.
Aug 29, 2015, 3:30 PM EDT
Bargnani is playing for the Italian national team.
Aug 29, 2015, 2:00 PM EDT
Bryant has appeared in every 2K game.
Aug 29, 2015, 12:30 PM EDT
That’s what he does.
Aug 29, 2015, 11:00 AM EDT
Sibert played four years in college.
Aug 29, 2015, 9:30 AM EDT
Owning this may be better than seeing Space Jam 2 with Lebron James, if that project comes together.
Aug 29, 2015, 8:00 AM EDT
He’s a coach, a brother.” — Lakers’ co-owner Jim Buss on Byron Scott
Aug 28, 2015, 11:00 PM EDT
It’s not a coincidence you see stars like Chris Paul, LeBron James, Tim Duncan and Russell Westbrook in a highlight package like this.
Aug 28, 2015, 9:30 PM EDT
Hollins’ likes to slow things down.
Aug 28, 2015, 7:59 PM EDT
It is going to be a rough year in Denver as they give the keys to the offense to a rookie point guard.
Aug 28, 2015, 6:46 PM EDT
I wouldn’t bet on him making the roster.
Aug 28, 2015, 5:44 PM EDT
Will either of them take a discount for security?
Aug 28, 2015, 3:58 PM EDT
Charles Barkley talked about how he never found Dawkins in a bad mood — he was always jovial.
Aug 28, 2015, 2:59 PM EDT
Boozer is making the right play here.
Aug 28, 2015, 2:15 PM EDT
It shouldn’t linger into training camp if he doesn’t aggravate it.
- Anthony Davis “definitely” plans on shooting more threes this season 4
- Jim Buss defends Byron Scott as Lakers coach, “He has the Laker blood in him” 22
- Jim Buss open to the idea of Kobe Bryant playing beyond this season 30
- Derrick Rose on sexual assault suit: “I am confident I will be proven innocent” 4
- Report: Kyrie Irving likely not back opening night, could be out until January 14
- Legendary Sixer, backboard-shattering dunker Darryl Dawkins dies at 58 14
- After Rio Olympics next summer, who takes over at Team USA coach? 8
- Kobe, Shaq discuss regrets over feud that ended their Lakers era 49