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.
Mar 6, 2015, 7:30 PM EST
Gasol will be an unrestricted free agent this summer, but is more than likely to remain with the Grizzlies.
Mar 6, 2015, 6:30 PM EST
Indeed it is.
Mar 6, 2015, 5:39 PM EST
He was even hitting his free throws.
Mar 6, 2015, 4:50 PM EST
It’s starting to feel like the playoffs are coming, play is getting chippy.
Mar 6, 2015, 4:02 PM EST
It was worth a shot.
Mar 6, 2015, 3:12 PM EST
It would be a long road back for White, but there is a road.
Mar 6, 2015, 2:37 PM EST
Raptors need their All-Star point guard to get on track
Mar 6, 2015, 1:38 PM EST
Pacers great tells fantastic tale of trash-talking gone awry
Mar 6, 2015, 12:54 PM EST
Do the Lakers have a chance?
Blindfolded attempt in Philippines Basketball Association dunk contest goes very, very poorly (video)
Mar 6, 2015, 12:16 PM EST
Mar 6, 2015, 11:39 AM EST
Orlando should do better
Mar 6, 2015, 10:34 AM EST
Portland can overcome loss of shooting guard, but it won’t be easy
Mar 6, 2015, 9:43 AM EST
It was a big win, but still
Mar 6, 2015, 9:07 AM EST
Former Celtics star continues what he began Wilkins’ rookie year
Mar 6, 2015, 8:30 AM EST
He said his Achilles has been bothering him.
Mar 6, 2015, 8:00 AM EST
The form wasn’t pretty but the result was.
Mar 6, 2015, 3:10 AM EST
Westbrook is still a machine
Mar 6, 2015, 12:53 AM EST
This hurts the Blazers guard depth.
LeBron James after receiving two flagrant fouls in his last three games: ‘Maybe I got to protect myself a little bit more’
Mar 6, 2015, 12:00 AM EST
James hints at retaliation.
Mar 5, 2015, 11:00 PM EST
Pacers’ David West made the assertion after Denver fired head coach Brian Shaw.
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- Ray Allen announces he will not play this season 14