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.
May 23, 2015, 12:08 PM EDT
The popular former Magic player would sell well to the fan base.
May 23, 2015, 11:00 AM EDT
Clean block that was unfortunately called a foul.
May 23, 2015, 9:30 AM EDT
Atlanta is already down 2-0 to Cleveland in the series, and if Korver misses any time, the Hawks are finished.
May 23, 2015, 8:00 AM EDT
He would bring a defensive mindset that he team could use.
May 23, 2015, 12:25 AM EDT
Cleveland shut down Atlanta’s offense in a dominant Game 2 performance.
May 22, 2015, 11:16 PM EDT
LeBron was great, and that was enough against a Hawks team that keeps losing guys due to injury.
May 22, 2015, 10:30 PM EDT
There’s also video of Harden doing some damage in the tunnel on the way to the locker room.
May 22, 2015, 9:30 PM EDT
Ruled a flagrant, which was probably the correct call under the circumstances.
May 22, 2015, 8:30 PM EDT
GM Mitch Kupchak: “It looks as though we’ll use our pick this year.”
May 22, 2015, 7:38 PM EDT
Irving is dealing with a knee injury.
May 22, 2015, 7:15 PM EDT
Explaining Stephen Curry’s game is just not that easy.
May 22, 2015, 6:49 PM EDT
Did they disagree? Sure. Was there a rift… depends on who you ask.
May 22, 2015, 5:45 PM EDT
Even an older NBA player has mad skills.
PBT Extra: Klay Thompson’s done well, but Warriors should throw other defenders at James Harden, too
May 22, 2015, 4:59 PM EDT
It might help Thompson’s offense, too.
May 22, 2015, 4:15 PM EDT
Summer League is a perfect place for giving White another look.
May 22, 2015, 3:30 PM EDT
Give some credit to Stephen Curry and Klay Thompson, who got back on defense.
Report: Lakers have ‘big-time’ interest in signing DeMarre Carroll, Celtics and Pistons also in pursuit
May 22, 2015, 2:45 PM EDT
Would they pay him the $15 million per season one NBA executive estimated the Hawks forward could get in free agency?
Report: Tom Thibodeau believed to prefer sitting out next season rather than helping Bulls by accepting trade
May 22, 2015, 2:07 PM EDT
That could leave Magic, Pelicans, Bulls and Thibodeau in a bind
May 22, 2015, 1:28 PM EDT
Which probably means it’s his last in the NBA
Chandler Parsons won’t say whether his surgery was microfracture, might not be ready for training camp
May 22, 2015, 12:50 PM EDT
Tea leaves reading negative for Mavericks
- Report: Scott Skiles in lead to become next Orlando coach 0
- Report: Jeff Van Gundy candidate for Pelicans’ coaching job 7
- Cavs’ improved defense deserves credit for commanding 2-0 Eastern Conference Finals lead 22
- No Kyrie Irving, no problem: Cavaliers cruise to blowout Game 2 win over Hawks 23
- Kyrie Irving out for Game 2 vs. Hawks 7
- PBT Extra: Klay Thompson’s done well, but Warriors should throw other defenders at James Harden, too 5
- PBT Extra: Give Warriors defense some credit for stop of Harden on last play 0
- Lakers general manager says Kobe Bryant told him next season will be Kobe’s last with Lakers 20