Dec 8, 2012, 9:30 AM EST
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.
Jan 31, 2015, 12:01 AM EST
180 or 360?
Jan 30, 2015, 10:59 PM EST
It took Kobe Bryant being injured for Cousins to make the squad.
Jan 30, 2015, 9:49 PM EST
If it can happen to Duncan….
Jan 30, 2015, 8:45 PM EST
Robin Lopez has a long rap sheet of mascot abuse.
Jan 30, 2015, 7:51 PM EST
Jeff Green could get more run.
Jan 30, 2015, 6:56 PM EST
This is not a serious injury, but they will miss him defending Blake Griffin.
Jan 30, 2015, 5:59 PM EST
All of those teams could use point guard depth.
Jan 30, 2015, 5:16 PM EST
Thank the new television contract.
Jan 30, 2015, 4:29 PM EST
“So if you see me diving on the floor and people say ‘what is he doing?’ I can’t help but be the player that I am.” —Jimmy Butler on playing in the All-Star Game
Jan 30, 2015, 3:29 PM EST
He should be. He was robbed.
Jan 30, 2015, 2:51 PM EST
I’ll take Stephen Curry
Jan 30, 2015, 2:09 PM EST
NBA Commissioner has delivered on All-Star Break. Back-to-backs next?
Jan 30, 2015, 1:34 PM EST
Who wil start for Kobe?
Jan 30, 2015, 12:49 PM EST
Will center stick with Mavericks this time?
Jan 30, 2015, 12:11 PM EST
Sliding into your DMs like…
Jan 30, 2015, 11:33 AM EST
Kings center waits five years, burns Clay Travis for tweet
Jan 30, 2015, 10:54 AM EST
Vaughn’s firing seems imminent
Jan 30, 2015, 10:13 AM EST
Who are the aWWWWWWWWWWWWWWWWWks?
Jan 30, 2015, 9:34 AM EST
Did anyone think he would get injured and say, “nah, I don’t want to fight through this” and walk away?
Jan 30, 2015, 8:58 AM EST
The Bulls have a great passing front line.
- Jimmy Butler even plans to play defense in the All-Star Game 7
- Damian Lillard “disappointed,” “disrespected” not to make All-Star team 41
- DeMarcus Cousins replaces Kobe Bryant in All-Star game 10
- Tyson Chandler, better than ever, thinking legacy 8
- Report: Magic close to firing Jacque Vaughn 15
- Three Things We Learned in NBA Thursday: The All-Star Rosters need to be expanded 29
- One day after having surgery, Kobe Bryant came to see Pau Gasol 7
- Report: Dwight Howard could miss “extended time” with knee injury 5