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.
Nov 29, 2014, 1:00 AM EST
The Thunder looked like the Thunder again.
Nov 28, 2014, 11:00 PM EST
Nov 28, 2014, 9:30 PM EST
Butler is worth way more than that, and he knows it.
Nov 28, 2014, 8:00 PM EST
Classy move by CP3.
Nov 28, 2014, 6:30 PM EST
He’s the team’s leading scorer (which says a lot about the Sixers’ offense).
Nov 28, 2014, 5:00 PM EST
Adam Silver has called it his top priority
Nov 28, 2014, 3:40 PM EST
Indiana hosts Magic
Nov 28, 2014, 2:10 PM EST
Melo said it came down to Bulls and Knicks
Nov 28, 2014, 12:39 PM EST
Grizzlies’ win upheld
Nov 28, 2014, 12:25 PM EST
To reach the 49 wins it took to make the playoffs in the West last season, the Thunder need to go 45-21 the rest of the way.
Nov 28, 2014, 11:00 AM EST
What about Chris Paul?
Nov 28, 2014, 9:30 AM EST
Mavericks own bitter about how Fisher left Dallas
Nov 28, 2014, 8:00 AM EST
I’d take this rumor with a grain or 12 of salt, but…
Nov 28, 2014, 1:51 AM EST
Scottie Pippen made the list, too.
Nov 27, 2014, 11:00 PM EST
Parker gets the rookie treatment from the official.
Nov 27, 2014, 9:30 PM EST
Davis is averaging 17.7 shots per game.
Nov 27, 2014, 8:00 PM EST
Sager will receive clearance to fly in January.
Nov 27, 2014, 6:30 PM EST
Rose says he is feeling better about his health.
Nov 27, 2014, 5:00 PM EST
Michael Malone increases pressure on sometimes-combustible Cousins
Nov 27, 2014, 3:30 PM EST
Celtics forward in final year of contract
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