Report: Owners pushing for a much tougher luxury tax


The NBA’s luxury tax is at the heart of why there will be no games the first two weeks of what should have been the NBA season.

The owners say a stiffer luxury tax is needed to provide competitive balance in the league (to help the Kings compete with the Lakers). The players say that this is a hard salary cap by another name and they will not take it. Both sides have dug in their heels.

But what tax levels are we talking about? Zach Lowe at Sports Illustrated has the details.

But first, as background, the tax under the old system was dollar-for-dollar. Last year the tax started at $70 million and every dollar over that amount a team spent it had to pay in tax. That money was divided up among the teams under the tax threshold. Your champion Dallas Mavericks paid more than $17 million tax, the Lakers led the way paying more than $21 million in tax.

Those numbers would go up sharply under the new plan.

• The tax would start at $1.75 in penalty payments for every dollar a team is over the tax threshold. Say goodbye to the dollar-for-dollar hit, which was the maximum penalty a team could pay under the old system.

• That $1.75-to-1 ratio would last for the first $5 million a team is over the tax threshold. For every $5 million increment after that, the penalty would jump by 50 cents per dollar. So, for spending over the threshold between $5 million and $10 million, the penalty would be $2.25-to-1. For spending between $10 million and $15 million, it would be $2.75-to-1. And so on.

• The tax threshold would begin near where it did last season, when the salary cap was set at $58 million and teams crossed into luxury-tax territory at the $70 million mark.

Lowe does the math and figures out the Lakers would have paid $53.7 million in tax on their salary from last season.

The players are right, that would push down spending some. It means the Lakers could not just keep spending to replace Luke Walton, who made $5.2 million last season not to fit in the plans.

But the big markets would still be able to spend into that tax some, more than smaller markets. They would have that advantage, just lessened.

And what no luxury tax can do is save a team from incompetent management and bad decisions. The teams with the best general managers, who scout well and get the right pieces to fit together, will still win. In the NBA, that more than spending has always separated the good from the bad (see the San Antonio Spurs, or the current Oklahoma City Thunder).

Just for the record, the same wealthy owners crying for this stiffer luxury tax in basketball would scream “socialism” at the top of their lungs if this same tax were applied to any of their other businesses. Savor the irony.

Kings’ Karl admits mistakes in DeMarcus Cousins trade controversey

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In the NBA, elite players have the leverage. It is just simple supply and demand.

DeMarcus Cousins is an elite player — and a favorite of owner Vivek Ranadive. He is not going anywhere.

Which made this summer’s “George Karl wants trade Cousins” a battle the coach couldn’t ultimately win — the owner wasn’t going to sign off on it, and the fans are going to side with Boogie. Remember Karl said he never had a player that was untradable, and that spiraled into reports Karl probed trade options with other teams, much to the frustration of management and Cousins himself.

Karl owned up to some of his mistakes in an interview on Comcast Bay Area, as reported by James Ham at

“To be honest with you, I apologized to DeMarcus for making the trade comment that I’ve never coached a player that’s untradeable,” Karl told Christensen. “That was wrong for me to say, because you all (the media) took it and blew it up into crazy.”

“But it’s my responsibility to be smart enough to not say things like that,” Karl continued. “So I did apologize because I thought that was the only thing, maybe some other things, but really the only thing that got us separated was that comment that then everybody wrote the we’re going to trade [Cousins].”

The relationship between Cousins and Karl — not to mention Rajon Rondo and other veterans — is the biggest key to the Kings’ season. Karl and Cousins say their relationship is solid now, but what happens when that is put under stress at some point during the season?

In talking to people around the team, the Kings players seemed to have formed a tight bond — even if part of the glue of that bond is a distrust of Karl that can work for them. This is a team that has the talent to compete for the bottom couple playoff seeds in the Western Conference, but everybody needs to be pulling on the rope in the same direction. We will see pretty quickly if the Kings can do that.

Pistons reveal “Detroit Chrome” alternate uniform

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I’m a fan of the Pistons’ alternate uniforms in general — their “Motor City” ones may be may favorite alternates around the league.

Now they have a new one — Detroit Chrome.

The Pistons will break these out for seven home games this season. From the official release:

The inspiration for the Detroit Chrome jerseys came about as a way to honor our coolest cars from the past and the cars of the future. Detroit is universally known as the auto capital of the world, where chrome leaves an indelible mark on the cars we create. The uniforms feature a matte chrome base color with clean simple lines inspired by the classic muscle cars that have roared up and down Woodward Avenue for decades. The navy trim and Detroit emblazoned across the chest represent the blue collar work ethic that the auto industry and region was built on.

Clean, simple, cool — I like it.

That would look good in the first round of the playoffs, too. (I’m predicting they get the eight seed.)