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 16, 2014, 7:48 PM EDT
Knicks make it official and announce they’ve signed Lamar Odom for the remainder of the season.
Apr 16, 2014, 6:59 PM EDT
Durant and LeBron at the top of the MVP ballot is easy, it’s filling out spots 3-5 that is the challenge.
Apr 16, 2014, 6:15 PM EDT
Kohl is going to pitch in $100 million to get a new arena built in Milwaukee.
Apr 16, 2014, 5:15 PM EDT
Teams will like his speed, but he’s destined for a second round pick.
Apr 16, 2014, 4:29 PM EDT
While the Lakers end their dreary season Kobe Bryant is already on vacation.
Apr 16, 2014, 3:46 PM EDT
Clippers forward: ‘It doesn’t really affect me, but so many guys would probably benefit’
Apr 16, 2014, 2:49 PM EDT
The Spurs have crushed the Grizzlies and Mavericks this season, so those teams are motivated to avoid a trip to the Riverwalk to start the postseason.
Apr 16, 2014, 2:14 PM EDT
First team nearly a clean sweep, but one top teamer didn’t even make other two ballots
Apr 16, 2014, 2:03 PM EDT
NBA could still rescind the technical
Apr 16, 2014, 1:32 PM EDT
New research delivers answer
Apr 16, 2014, 12:57 PM EDT
New York based hedge fund billionaires Marc Lasry and Wes Edens are buying the team but keeping it in Wisconsin, they just need to get a new arena built.
Apr 16, 2014, 12:50 PM EDT
Two very different candidates signify wide search
Apr 16, 2014, 12:22 PM EDT
Knicks center knows, though, he might have no choice
Apr 16, 2014, 11:46 AM EDT
You can’t do enough Animal House references to make me happy.
Apr 16, 2014, 11:09 AM EDT
Duo leaves Michigan after their sophomore years
Apr 16, 2014, 9:55 AM EDT
How many years feature three of the best records in a franchise’s history?
Apr 16, 2014, 9:22 AM EDT
Bulls give Greg Smith, Ronnie Brewer, Lou Amnundson and Mike James multi-year contracts
Apr 16, 2014, 8:45 AM EDT
Nothing like waiting until the last minute to figure things out.
Apr 16, 2014, 8:00 AM EDT
Nine combined spots on the ballot go to eight different players, and none of our winners made the other two’s top three
Apr 16, 2014, 2:42 AM EDT
Chris Paul and J.J. Redick look good as Clippers ready for playoffs.
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- Report: Sale of Milwaukee Bucks for record $550 million agreed upon, team to stay in Milwaukee 33
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- 2014 PBT Awards: Most Improved Player 21
- Tuesday NBA grades: Chris Paul looks playoff ready 1