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.
Apr 28, 2015, 4:30 PM EDT
I expect he stays in Cleveland, but nothing is a lock.
Apr 28, 2015, 3:44 PM EDT
It looks like Casey will be back. Probably. But nothing is certain.
Apr 28, 2015, 3:00 PM EDT
Jim Buss and Mitch Kupchak both remain interested in Rondo, but have cooled a bit in terms of how high they’ll go to retain his services.
Tyson Chandler won’t be suspended for throwing punch at Dwight Howard in Mavericks’ Game 4 win over Rockets
Apr 28, 2015, 2:20 PM EDT
Watch and decide if this was the right call; it’s unclear, at best.
Apr 28, 2015, 1:40 PM EDT
Lopez has a player option for $16.7 million next season, but could opt out to re-sign a longer deal this summer — with Brooklyn, or with someone else.
Apr 28, 2015, 12:57 PM EDT
He could need surgery.
Apr 28, 2015, 12:30 PM EDT
The second round of the Eastern Conference playoffs just got very, very interesting.
Apr 28, 2015, 11:50 AM EDT
Apr 28, 2015, 11:10 AM EDT
Williams silenced his critics with a 35-point outing, and Jack had some words for Pierce afterward.
Apr 28, 2015, 10:30 AM EDT
Apr 28, 2015, 9:50 AM EDT
Kidd jumped up and down to make sure to get the timeout he wanted.
Apr 28, 2015, 9:10 AM EDT
The Lillard we remembered from last year’s playoffs was back.
Apr 28, 2015, 8:30 AM EDT
Can Austin Rivers have another strong game?
Apr 28, 2015, 8:00 AM EDT
Houston needs to make adjustments to the new Dallas starting lineup.
Apr 28, 2015, 2:13 AM EDT
Without Mike Conley to check him Damian Lillard ran free.
Apr 28, 2015, 1:14 AM EDT
D-Will tied his career playoff high with this.
Apr 27, 2015, 11:23 PM EDT
Michael Carter-Williams and Khris Middleton combined for 43 points.
Apr 27, 2015, 9:56 PM EDT
Series is now tied at 2-2.
Apr 27, 2015, 9:01 PM EDT
Washington’s averaged defender distance to the Toronto shooter was 3.55 feet, the closest defense any team played in the first round of the playoffs.
Apr 27, 2015, 7:58 PM EDT
The doctor will decide if microfracture is needed while doing a scope.
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