Aug 18, 2013, 3:30 PM EDT
The NBA’s lockout prior to the 2011-12 season was certainly all about money, and how the owners could channel more of the league’s revenue into their pockets instead of those of the players.
But it was also about putting a system in place that would, in theory, make it more difficult for the teams in the largest markets to simply spend their way to a title.
While the new, harsher luxury tax penalties put into place make it severely punitive financially to go out and exceed the tax threshold season after season, there is a loophole that exists which works to the advantage of the large market teams in the long run, while working against their small-market counterparts.
From Larry Coon at HoopsWorld:
The first year of the repeater tax (2015) will only apply to teams that were also taxpayers in the three previous seasons — 2011-12 through 2013-14. So right now, only Boston and the Lakers are candidates. The Celtics will probably stay out of the tax this season, and the Lakers are clearing the books next summer. So I don’t think any team will be a repeater in 2015.
Starting in 2016 a team is a repeater if they were taxpayers in any three of the previous four seasons (for 2016 that’d be 2011-12 through 2014-15). That means any team that was a taxpayer in either 2012 or 2013 would be a repeater if they are a taxpayer in both 2014 and 2015. Most teams will be able to avoid the repeater penalty. A few teams like Brooklyn probably won’t care.
The system is set up — well, “set up” is probably a bad way to put it. I don’t think they did it intentionally — so that two years out of the tax buys you three years IN the tax without being a repeater. I think many teams will adopt this strategy.
That last part is the key.
Take a team like the Celtics, for instance, who had no problem committing to payroll that would put them over the tax threshold when they were trying to contend for a title over the last few seasons. They’re rebuilding this year and next at minimum, but after those two years out of the tax, they could add free agents and load up for another run at a title by spending whatever it costs for the next three seasons, all the while avoiding the dreaded repeater tax.
There are very few teams that won’t try to implement this strategy. This summer, we saw the Heat use the amnesty provision to waive Mike Miller, even after he was a part of winning back-to-back titles, because the move saved them a total of $17 million in salary and luxury tax costs. And we saw the Lakers make a similar move to cut costs when they waived Metta World Peace.
The Nets are one club that doesn’t seem to care about dollars, but they’re certainly in the minority. Most large market teams will use payroll to chase championships when the talent on the roster dictates it. Small market teams, wary of even the more basic tax threshold, still won’t be able to meet that standard.
May 28, 2015, 2:55 AM EDT
This is where the week off until the Finals tip off benefits the Warriors.
May 28, 2015, 1:49 AM EDT
Houston won 56 games, secured No. 2 seed in powerful Western Conference and won more playoff series than its previous 17 years combined
May 28, 2015, 12:39 AM EDT
The Warriors don’t care how it looked, they will take it.
Dwight Howard elbows Andre Iguodala but avoids flagrant foul and suspension – for now, at least (video)
May 27, 2015, 11:50 PM EDT
Rockets center elbowed Andre Iguodala high
May 27, 2015, 11:36 PM EDT
That sounds bad. Is that bad?
May 27, 2015, 11:15 PM EDT
“Hey!” -Kyrie Irving and Kevin Love, probably
May 27, 2015, 10:21 PM EDT
Will it stand?
May 27, 2015, 9:51 PM EDT
Who will it be (if anyone)?
May 27, 2015, 8:59 PM EDT
First Kobe, now Melo – Dudley goes scorched earth
May 27, 2015, 8:12 PM EDT
The Cavaliers are allowing 98.5 points per 100 possession in the playoffs, the best of the four teams to reach the conference Finals
May 27, 2015, 7:20 PM EDT
Will he become Anthony Davis’ next head coach?
Stephen Curry feels like there’s a bruise ‘all the way up and down’ his body, will likely wear arm sleeve in Game 5
May 27, 2015, 6:28 PM EDT
Warriors guard says he shot well with sleeve in shootaround
May 27, 2015, 5:35 PM EDT
If they want him gone, they just have to pull the trigger on the firing. Otherwise, bring him back.
May 27, 2015, 4:47 PM EDT
The Hawks had an exciting season, they filled an arena that in past years felt like a mausoleum, they played beautiful basketball for months at a time.
May 27, 2015, 3:59 PM EDT
May 27, 2015, 3:23 PM EDT
Free agents will still come to the Lakers, but their pool may be smaller than some other teams because of Kobe.
May 27, 2015, 2:30 PM EDT
There were plenty of rumors to the contrary.
May 27, 2015, 1:50 PM EDT
Suns don’t need any more young players.
May 27, 2015, 1:10 PM EDT
Plenty has changed since LeBron re-joined the Cavaliers last summer.
May 27, 2015, 12:30 PM EDT
Hawks, too, have some decisions to make this summer.
- Rockets had an excellent season. Are they content with that? 2
- Harden struggles, Warriors role players step up leading team to Finals for first time in 40 years 12
- Dwight Howard hit with suspension-triggering technical foul 6
- PBT Extra: Cavaliers’ improved defense helps them to Finals 7
- Reports: Bulls getting closer to firing Tom Thibodeau 23
- PBT Extra: Despite ending, Hawks had season worth celebrating 3
- Bucks’ Jared Dudley: “Most guys don’t want to play with Kobe” 63
- PBT Extra: Expect a healthy Stephen Curry for Game 5… sorry Houston 4