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 3, 2015, 4:09 PM EDT
It was a tale of two halves, and the Wizards took the key one.
May 3, 2015, 3:30 PM EDT
Most major media members picked the Spurs.
May 3, 2015, 3:08 PM EDT
Beal looked to be in significant pain.
Doc Rivers on whether Chris Paul will play in Game 1 vs. Rockets: ‘If I had to guess, I would say no’
May 3, 2015, 2:00 PM EDT
Paul battled through a hamstring injury during his incredible Game 7 performance.
May 3, 2015, 12:30 PM EDT
Wizards could make things difficult on the top-seeded Hawks.
May 3, 2015, 11:00 AM EDT
Cavaliers could be OK against the Bulls (even without Kevin Love), Warriors remain favorites and more lessons from the first round
May 3, 2015, 9:30 AM EDT
Thibs may not want to go to Orlando if he becomes a free agent as a coach.
May 3, 2015, 8:00 AM EDT
The Clippers got a free look at the final play.
May 3, 2015, 12:58 AM EDT
Tell me again how he can’t win the big one.
May 2, 2015, 11:53 PM EDT
There’s not going to be a better series these playoffs.
May 2, 2015, 10:56 PM EDT
It was going to take a shot like that to win this, the best first-round series in recent memory.
May 2, 2015, 9:03 PM EDT
He was out for eight minutes the Clippers were only -2.
May 2, 2015, 8:30 PM EDT
Dudley has player option for $4.25 million for next season, but hopes to back in Milwaukee regardless.
May 2, 2015, 7:00 PM EDT
The Warriors (and the Bulls, and the Hawks) may have something to say about that.
May 2, 2015, 5:30 PM EDT
Portland was very good with Matthews healthy this season, but he’s now an unrestricted free agent, and it’s unclear how high the Blazers will go to retain his services.
May 2, 2015, 4:00 PM EDT
Changes are ahead in Brooklyn, and Johnson sees them coming.
May 2, 2015, 2:39 PM EDT
Well-deserved, but somehow Dunleavy comes away unscathed.
Nets coach Lionel Hollins on whether it took too long for his team to figure things out: ‘Did we make the playoffs?’
May 2, 2015, 2:00 PM EDT
Hollins was defiant after the Nets were eliminated from the postseason, and believes the fact that they made the playoffs at all was an achievement worth noticing.
May 2, 2015, 12:30 PM EDT
Korver’s hot start was indicative of how things would go.
May 2, 2015, 11:00 AM EDT
Dunleavy hit Michael Carter-Williams in the neck early in Chicago’s Game 6 win over the Bucks.
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- Adjusting for playoff rotations round two: Watch out for the Wizards 0
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- Chris Paul banks in game winner to lift Clippers past Spurs (VIDEO) 28
- Report: Bulls’ Mike Dunleavy won’t be suspended for Game 1 against Cavaliers 22
- PBT Extra: Can Clippers build on Game 6 win? 2
- PBT Extra with NBASavant.com: Derrick Rose got it done on both ends in first round 2