The Lakers have a potential $85 million luxury tax bill looming

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As it stands now (with the roster basically set), the Lakers will have a $99 million payroll — $17 million more than the second most expensive team in the NBA (Brooklyn at $82 million). The Lakers payroll the following season will be in that same ballpark.

I hear the questions from a lot of people outside Los Angeles — didn’t we just have a lockout, didn’t we just miss months of basketball to stop moves like this? We don’t just want a few super teams!

(Actually, ratings say that you do. And NFL-style parity both is impossible in the NBA and probably wouldn’t sell as well anyway, but that’s another discussion for another day.)

The other owners did want to stop this kind of payroll/team building and during the lockout they agreed to stiffer taxes discourage teams from this kind of spending. But those penalties don’t start to kick in until the 2013-14 season — that is when the Lakers will start to pay a stiff price for their payroll.

Cap guru and friend of the site Larry Coon explains it in an email to Henry Abbott at TrueHoop.

The Lakers will have a tax bill of around $30 million next July, and in retrospect, will view this season as their salad days — it’s the last one where the tax rate is dollar-for-dollar. Starting in 2013-14 the new “incremental” tax takes over, where being $30 million above the tax line will mean paying a whopping $85 million tax bill.

And it gets worse. Starting in 2014-15 teams will pay an even higher rate for being repeat offenders — defined as paying tax in at least three of the four previous seasons. A team $30 million over the tax line will pay — brace yourself — an additional $115 million in luxury tax.

After adding up their payroll, luxury tax bill, and revenue sharing contribution (projected to be $49.4 million in 2013-14), even the Lakers have to stop to consider whether this simply can be written off as the cost of doing business — and that’s the future if they’re paying players with salaries like Bryant, Howard, Gasol and Nash.

By the 2014-15 season the Lakers will be able to control their payroll better because Kobe Bryant, Pau Gasol and Steve Nash come off the books (we will assume Dwight Howard stays at a max deal). For example, Kobe could do what both Tim Duncan and Kevin Garnett just did, taking below their market value (salaries below $10 million) to help out the team.

But the Lakers are all in for the next two seasons with the roster they have.  And with luxury tax and revenue sharing in July 2014 they are going to be writing about a $130 million in checks to the league in addition to their $100 million payroll. They can do some things to lower costs (amnesty Metta World Peace, for one) but if they want to compete for a ring those will be small dents. The big-ticket items, topped by Kobe’s $30 million salary, will remain.

Even with what Jack Nicholson pays for his seats and what Time Warner is paying to broadcast Lakers games on a new regional sports network, the Lakers will not be raking in large profits, if any. And remember, the Lakers are the Buss family business, they do not have billions coming in from other sources so that this is a toy. The Lakers need to be profitable.

But they have run the numbers and decided to chase the rings anyway. Which is what the other owners always feared.

LeBron James on passing Michael Jordan: “I fell in love with the game because of Mike” (VIDEO)

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LeBron James passed Michael Jordan for most points scored in NBA playoff history on Thursday night during the Cleveland Cavaliers’ win over the Boston Celtics, 135-102.

After the game, LeBron and his teammates took to the podium to speak on their accomplishment of making it to yet another Finals as they settle in for a rematch with the Golden State Warriors.

LeBron was humble about his accomplishment, crediting Jordan for driving him to play the game of basketball as well as shaping his own game.

“I wear the number [23] because of Mike. I think I fell in love with the game because of Mike,” said James. “When you’re growing up and you’re seeing Michael Jordan, it’s almost like a god.”

James and the Cavaliers will take on the Warriors in Game 1 of the 2017 NBA Finals on June 1.

Watch 36-year-old James Jones throw down a putback dunk vs. the Celtics (VIDEO)

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LeBron James is on his way to his 7th-straight Finals after the Cavaliers beat the Boston Celtics, 135-102, in Game 5 of the Eastern Conference Finals on Thursday night.

The game was out of hand from the beginning, with the Cavaliers scoring a franchise playoff high 75 points in the first half.

At one point in the fourth quarter, Tyronn Lue emptied out his bench and we got to see some of the Cavaliers garbage time guys get run. One of those guys was James Jones, 36, who has been around so long he was a rookie with Reggie Miller in Indiana.

He also dunked!

Via Twitter:

Let’s all just bask in the glory that is that putback dunk and in our little vacation until the Finals start on June 1.

LeBron James, Cavaliers advance past Celtics to meet Warriors in 2017 NBA Finals

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Let’s line it up and run it again. The Cleveland Cavaliers and Golden State Warriors are going to meet in the 2017 NBA Finals after LeBron James and the Cavaliers beat the Boston Celtics in Game 5 on Thursday, 135-102.

It wasn’t much of a contest from the outset as Cleveland looked determined to put away their opponent. The Cavaliers played strong, shot well from 3-point range, and forced the Celtics into 18 turnovers over the course of the game.

The Cavaliers set a franchise playoff record in the first half, scoring 75 points in the first two periods. LeBron had 20 before the third quarter started, putting him just inches away from passing Michael Jordan to top the list for most points scored in NBA playoff history.

That moment came in the third quarter, with James dropping in a sweet 3-pointer from the left side of the arc to push him past Jordan. LeBron finished the game with 35 points, going 4-of-7 from 3-point range will adding eight assists, eight rebounds, and three steals.

Kyrie Irving was another bright spot for the Cavaliers, scoring 24 points to go along with seven assists. Kevin Love added 15 points, and Deron Williams had a rejuvenation off the bench with 14.

For Boston, yet another game without Isaiah Thomas forced their offense into stagnation. Avery Bradley — who had a considerable series in an effort that should not be overlooked — scored 20 points on 10-of-20 shooting. Gerald Green was Boston’s second-leading scorer in a bench role, adding 14 points.

Now we get to wait until June 1, when what seemed an inevitability way back in training camp has indeed come to pass. The Warriors get their shot at redemption after the worst breakdown in NBA playoff history, and the Cavaliers get a chance to solidify themselves over their peers and galvanize LeBron’s position as the best player of a generation.

The Finals don’t start for anther week. We’ll all be champing at the bit to see if Cleveland really does have what it takes to guard the Warriors offense. Likewise, a top defensive team in Golden State will need to prepare themselves for the LeBron that showed up against the Celtics in Game 1 and 2.

LeBron James passes Michael Jordan for most NBA career playoff points

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LeBron James is now above Michael Jordan in one very important, objective area. On Thursday night against the Boston Celtics, LeBron passed Michael Jordan for the most playoff points scored in NBA history.

James’ historic moment came in the third quarter of Game 5, with the Cavaliers up by double-digits.

LeBron passed Jordan with a 3-pointer that came from the left side of the arc.

Via Twitter:

The Cavaliers look poised to meet the Golden State Warriors yet again in the NBA Finals.