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 24, 2014, 8:44 PM EDT
Westbrook’s level of annoyance is impressive.
Apr 24, 2014, 7:45 PM EDT
This is just interesting to watch.
Apr 24, 2014, 5:46 PM EDT
Sorry KD, but through two games Allen has been the MVP of this series.
Apr 24, 2014, 5:00 PM EDT
No suspension for McRoberts. Somehow.
Apr 24, 2014, 3:59 PM EDT
Jabari Parker says he passed more than Carmelo because he had a better team to pass to.
Apr 24, 2014, 3:17 PM EDT
He wants Steph Curry money, but he’ll likely get more like $7 million a year.
Apr 24, 2014, 2:32 PM EDT
Gasol basically wants D’Antoni gone, but even then he likely moves on.
Apr 24, 2014, 1:56 PM EDT
Oscar Robertson thinks ‘Melo should get out of Dodge (and go to Houston).
Apr 24, 2014, 1:22 PM EDT
Kevin Pritchard tweets message from Pacers president
Apr 24, 2014, 12:44 PM EDT
Less-heralded Damien Inglis declares, too
Apr 24, 2014, 12:01 PM EDT
He will not be getting a baseball contract soon.
Apr 24, 2014, 11:26 AM EDT
Dwyane Wade does writeup on Serena Williams
Apr 24, 2014, 10:52 AM EDT
Harden is frustrated. He should be, shooting under 30 percent for two games.
Apr 24, 2014, 10:19 AM EDT
Grizzlies guard gets Joe Dumars Trophy over Jeff Green, Channing Frye, Bradley Beal, Damian Lillard and Mike Dunleavy
Apr 24, 2014, 9:24 AM EDT
Trail Blazers forward is averaging 44.5 points trhough two games
Apr 24, 2014, 8:46 AM EDT
Dwight Howard was aggressive early and put on a show, but LaMarcus Aldridge won the war.
Apr 24, 2014, 8:00 AM EDT
All three series Thursday night are tied 1-1.
Apr 24, 2014, 2:48 AM EDT
LA has 89 points and 26 rebounds in two games.
Apr 24, 2014, 1:40 AM EDT
Trail Blazers take 2-0 series lead with second win in Houston
- Josh McRoberts fined $20,000 for forearm foul to LeBron’s throat 37
- Oscar Robertson says if he were Carmelo Anthony “I would leave today” 46
- Larry Bird, through Pacers general manager, says Frank Vogel’s job is safe 10
- Can LaMarcus Aldridge break the all-time single-playoff scoring record? 24
- Thursday NBA playoff previews: Which Indiana team shows up? 11