Skip to content

Heat may be forced to break up superstar core due to league’s upcoming payroll taxes

Dec 8, 2012, 9:30 AM EDT

Miami Heat v Boston Celtics Getty Images

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.

From Ian Thomsen of Sports Illustrated:

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.

Latest Posts
  1. Stephen Curry scores 38 in Warriors’ blowout win over Grizzlies (VIDEO)

    Mar 28, 2015, 9:45 AM EDT

    Stephen Curry AP

    Warriors keep rolling, while the Grizzlies are starting to feel like a first round loss.

  2. Kevin Love finds LeBron James for huge alley-oop slam (VIDEO)

    Mar 28, 2015, 8:30 AM EDT

    LeBron James AP

    Highlight-reel play came near the end of a loss to the Nets.

  3. LeBron after Cavaliers fall to Nets: ‘You don’t chalk up losses’

    Mar 27, 2015, 11:44 PM EDT

    LeBron James AP

    LeBron refused to be dismissive of a seemingly harmless regular season loss.

  4. Shaquille O’Neal says he regrets leaving Magic for Lakers

    Mar 27, 2015, 10:30 PM EDT

    Orlando Magic add Shaquille O'Neal to team's Hall of Fame Getty Images

    O’Neal made the remarks while being inducted into the Orlando Magic Hall of Fame.

  5. Draymond Green launches “It’s cool Glen” line of T-shirts in latest banter between him, Doc Rivers

    Mar 27, 2015, 8:30 PM EDT

    b2644bf0-d4c9-11e4-bb85-27743e449672_csg

    The battle between Green and Doc Rivers continues in the funniest of ways.

  6. Cavaliers coach David Blatt: ‘LeBron James is our MVP’

    Mar 27, 2015, 7:25 PM EDT

    Atlanta Hawks v Cleveland Cavaliers - Game 1 Getty Images

    Blatt knows James is unlikely to get the league-wide award this season.

  7. No Durant, what does that mean for Thunder in these playoffs? Trouble.

    Mar 27, 2015, 6:12 PM EDT

    Oklahoma City Thunder v Denver Nuggets Oklahoma City Thunder v Denver Nuggets

    The Thunder defense has become a mess, which is bad for the playoffs.

  8. Report: UNLV freshman guard Rashad Vaughn to enter NBA draft; Vaughn denies it

    Mar 27, 2015, 4:32 PM EDT

    San Jose State v UNLV Getty Images

    He is likely a middle second round pick if he comes out.

  9. Blake Griffin nails impression of Austin Rivers (VIDEO)

    Mar 27, 2015, 3:45 PM EDT

    Los Angeles Clippers v New York Knicks Getty Images

    It’s pretty spot on. And cold-blooded.

  10. Kevin Durant to have third foot surgery; is done for season, playoffs

    Mar 27, 2015, 3:09 PM EDT

    Kevin Durant Kevin Durant

    He should be back next season, the final one of this contract with Oklahoma City.

  11. High praise: Bob Cousy says Hassan Whiteside reminds him of Bill Russell

    Mar 27, 2015, 1:32 PM EDT

    Boston Celtics v Miami Heat Boston Celtics v Miami Heat

    Cousey said not Shaq, not Ewing, nobody reminded him of Russell like Whiteside.

  12. Report: Salary cap could rise to $105 million in 2017-18

    Mar 27, 2015, 11:55 AM EDT

    AP Money Found AP

    As everyone braces for 2016 spike, another big bump could follow

  13. Goran Dragic leading feisty Heat’s playoff push

    Mar 27, 2015, 10:55 AM EDT

    Goran Dragic, Josh Tiven Goran Dragic, Josh Tiven

    LeBron James and a lot of stature are gone, but with the more-modest goal of just making the playoffs, Miami’s new point guard embracing the challenge

  14. Anthony Davis made 100 free throws in arena after Rockets loss

    Mar 27, 2015, 10:19 AM EDT

    Houston Rockets v New Orleans Pelicans Getty Images

    Pelicans star missed eight free throws in setback to Houston

Featured video

Where does Steve Nash rank all-time?
Top 10 NBA Player Searches
  1. K. Durant (6223)
  2. K. Lowry (5866)
  3. L. Aldridge (5825)
  4. R. Rubio (5791)
  5. N. Batum (5368)
  1. G. Monroe (5279)
  2. P. George (5155)
  3. A. Shved (5139)
  4. G. Hayward (5131)
  5. D. Rose (5088)