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.
Mar 16, 2014, 11:00 AM EDT
Doc Rivers, Chris Paul and DeAndre Jordan all recently explained why they’re against the NBA raising its age limit. But there are valid reasons on the argument’s other side.
Mar 16, 2014, 9:30 AM EDT
John Wall splits two defenders near mid-court before putting the exclamation point on a win over the Nets with a thunderous slam.
Mar 16, 2014, 8:00 AM EDT
The Sixers are currently riding a 19-game losing streak that will reach 20 by the time I’m finished writing this. But for better or for worse, no one inside the Philadelphia organization is deluding themselves as to what’s going on there this season. Call it tanking, or as the NBA’s new commissioner Adam Silver prefers, rebuilding.…
Mar 15, 2014, 10:30 PM EDT
There are plenty of players who make exaggerated vocal noise during the course of an NBA game, with Carlos Boozer of the Bulls perhaps heading up that very long list. While it’s accepted to a certain extent, it’s also nice to see a veteran of the game point out just how ridiculous it is. During…
Mar 15, 2014, 8:59 PM EDT
How Detroit’s Andre Drummond staggered and went down after this hit, and how he stayed down for several minutes (all the way through the ensuing commercial break not part of the above video), is a little frightening. The medical staff brought out a stretcher but he got up under his own power and was helped…
Mar 15, 2014, 8:00 PM EDT
Joakim Noah receives a $500K bonus if he’s named to the All-NBA first team. Does he have a shot?
Mar 15, 2014, 6:30 PM EDT
Carmelo Anthony seems initially pleased with the hiring of Phil Jackson. Mike Woodson, on the other hand, didn’t sound quite as optimistic — for obvious reasons.
Mar 15, 2014, 5:00 PM EDT
The Thunder are just a game back of the Spurs for the league’s best record, an achievement that would guarantee home court advantage throughout the playoffs. But they’ll willingly be hurting that effort by resting Russell Westbrook as a precautionary measure in certain back-to-back sets.
Mar 15, 2014, 3:30 PM EDT
We’ve known for a very long time that the Lakers wouldn’t be making the playoffs this season. After Friday night’s loss, it became official.
Mar 15, 2014, 2:00 PM EDT
The mere presence of Phil Jackson in the Knicks front office will have an immediate impact in terms of big-name free agents looking at New York as a possible destination.
Mar 15, 2014, 12:30 PM EDT
After playing out consecutive 10-day contracts, the Nets have signed Jason Collins for the remainder of the season.
Mar 15, 2014, 11:00 AM EDT
Kenneth Faried showed why the Nuggets would have been crazy to trade him at the deadline, as he helped send the Heat to their fifth loss in six games.
Mar 15, 2014, 9:30 AM EDT
Ultimately Thomas Wolfe will be proven right, you can’t go home again. Not even Phil Jackson. It’s easy to sit back and list the reasons Jackson’s return to the team that drafted him, taking over basketball operations of the New York Knicks, will not work: James Dolan; Jackson has never had any front office experience before;…
Mar 15, 2014, 8:00 AM EDT
Evan Turner wasn’t initially that fond of the Sixers new GM, but he may have changed his mind on his way out of town.
Mar 15, 2014, 12:46 AM EDT
I wouldn’t say Utah’s Enes Kanter dunks on the Clippers’ DeAndre Jordan because that implied Jordan got in his way. Jordan went for the block but kind of tried to swipe it as Kanter went by. Didn’t work, big dunk for the Jazz. The Clippers went on to win the game 96-97, their 10th consecutive…
Mar 14, 2014, 11:02 PM EDT
Tony Wroten of the Sixers became the latest player to experience a shoe malfunction.
Mar 14, 2014, 9:31 PM EDT
Pau Gasol believes that Kobe had every right to demand the Lakers put together a team capable of winning immediately.
Mar 14, 2014, 8:03 PM EDT
Paul Pierce continues to play up his hatred of the Knicks.
Jermaine O’Neal explains his reasoning for confronting Blake Griffin outside locker room following loss to Clippers
Mar 14, 2014, 6:36 PM EDT
Blake Griffin apparently did something on the court that, at least in Jermaine O’Neal’s eyes, crossed the line.
Mar 14, 2014, 5:35 PM EDT
After a disaster of a season in New York, Knicks owner James Dolan has made his bold move to save face. Now we will see if it actually turns the franchise around. The Knicks have announced they will “hold a press conference on Tuesday, March 18 to make a major announcement.” That would be the…
- Doc Rivers, Clippers players oppose raising NBA’s age limit 0
- Report: LeBron ‘will look at’ Knicks in free agency now that Phil Jackson is in place 61
- Phil Jackson to Knicks could work. It probably won’t, but it could. 31
- Pau Gasol says Kobe was right to rip Lakers front office 43
- It’s confirmed: Phil Jackson returns to Knicks to head up front office, revive franchise 33