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.
Sep 23, 2014, 11:29 PM EDT
Cuban let Chandler leave in free agency in the summer following the Mavs’ lone NBA title.
Sep 23, 2014, 10:30 PM EDT
No deal yet, but training camp is less than a week away, so both sides are motivated to expedite the process.
Sep 23, 2014, 8:02 PM EDT
Memphis is the latest team to try to salvage the former second overall pick in the 2008 draft.
Sep 23, 2014, 7:32 PM EDT
Not bad, but very Hawks-like.
Sep 23, 2014, 6:31 PM EDT
Kobe Bryant, Derrick Rose among the more intriguing names on the list.
Sep 23, 2014, 5:29 PM EDT
What is Ricky Rubio worth on the open market.
Sep 23, 2014, 4:16 PM EDT
It’s a play off what Seattle and Denver have done before.
Sep 23, 2014, 3:29 PM EDT
Danny Ainge has done a good job with keeping his options open.
Sep 23, 2014, 2:38 PM EDT
Adam Silver also says league isn’t looking into owners’ pasts
Sep 23, 2014, 2:02 PM EDT
Pierce signed for mid-level exception with Wizards
Sep 23, 2014, 1:26 PM EDT
James reportedly received guaranteed contract
Sep 23, 2014, 12:50 PM EDT
Not a lot of people will see the building from above, and it’s early in the process, but…. that’s not pretty.
Sep 23, 2014, 12:15 PM EDT
The many times Toronto and Kyle Lowry could have blown it with each other
Sep 23, 2014, 11:38 AM EDT
He’s already the best midrange shooter in the game.
Sep 23, 2014, 11:00 AM EDT
Heat guard getting style from fictional Miami serial killer
Sep 23, 2014, 10:00 AM EDT
Pacers ready for season without Paul George, Lance Stephenson
Sep 23, 2014, 9:30 AM EDT
Lamb, after playing for Bucks and Magic, likely to fall out of NBA following training camp
Sep 23, 2014, 9:00 AM EDT
Reed, previously a member of Kings and Grizzlies, in line to compete for roster spot
Sep 23, 2014, 8:30 AM EDT
He’s better than Charles Barkley already at this.
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