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


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.

Anfernee Simons declares for NBA draft straight out of high school (kind of)

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Anfernee Simons spent the last year playing high school basketball. But because he did so as a fifth-year prep after technically graduating from high school last year and turns 19 in June, he’s eligible for the NBA draft.

Following a path taken by Thon Maker and considered by Jonathan Isaac, Simons – as expected – is turning pro.

Jonathan Givony of ESPN:

Anfernee Simons will forgo his collegiate eligibility and declare for the 2018 NBA draft, he informed ESPN.

Simons informed ESPN that he will sign with agent Bobby Petriella of Rosenhaus Sports Representation

Simons looks like a mid-first-rounder, though his range is quite wide considering how large of a jump he’s making. Teams can learn relatively more about him in workouts and interviews.

A 6-foot-4 shooting guard who specializes in scoring, Simons is quick on his feet with a quick release off the dribble – with range from beyond the 3-point arc to an impressive floater game. Those floaters will be important, because Simons isn’t nearly strong enough for the NBA. He’s also a lackluster passer, though because of physicality concerns, no team will count on Simons to run an offense anytime soon, anyway. He’ll have time to develop as a distributor.

By signing with agents, Simons loses his college eligibility. Drew Rosenhaus, a big-name football agent, isn’t certified with the National Basketball Players Association. Petriella’s only NBA client has been Diamond Stone, a 2016 second-rounder who’s out of the league. They’re all in this bold venture together now.

As the NBA considers changing its draft rules for young prospects, Simons will be an interesting case study. He obviously meets the draft-eligibility requirements in the one-and-done era, but he’s also jumping from prep-school competition to the NBA. The league’s strength and nutrition programs should serve him well. His overall development could influence the wider debate.

For third time in career, Dwight Howard suspended for technical fouls

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In the midst of his historic 32-point, 30-rebound game, Dwight Howard picked up a technical foul for arguing about an uncalled foul when his shot was blocked.


Charlotte Hornets center Dwight Howard has been suspended one game without pay for receiving his 16th technical foul of the 2017-18 season, it was announced today by Kiki VanDeWeghe, Executive Vice President, Basketball Operations.

Five players have been suspended 11 times under NBA’s current technical-foul policy, which went into effect before the 2005-06 season and suspends players one game for their 16th technical and another game for every other subsequent tech each season.

The full list of suspensions:

  • Rasheed Wallace 2006-07
  • Rasheed Wallace 2006-07
  • Stephen Jackson 2008-09
  • Dwight Howard 2010-11
  • Dwight Howard 2010-11
  • DeMarcus Cousins 2013-14
  • Blake Griffin 2013-14
  • DeMarcus Cousins 2015-16
  • DeMarcus Cousins 2016-17
  • DeMarcus Cousins 2016-17
  • Dwight Howard 2017-18

The Hornets are already out of the playoff race, and Howard will serve the suspension against the tanking Grizzlies tonight. He loses $162,069 in salary, but the effects of this suspension are relatively minimal.

However, Howard will miss his first game this season. Playing all 82 games would have been quite an accomplishment at this stage of his career.

Report: Kawhi Leonard didn’t give inquiring Spurs teammates a return date or guarantee he will play this season

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The Spurs reportedly held a players-only meeting to implore Kawhi Leonard to play. He reportedly defended his missing games due to injury. Even if his teammates believed his extended absence was justified, they surely wanted to know when it would end.

Apparently, they didn’t get an answer.

Jabari Young of the San Antonio Express-News:

According to sources, Leonard, who was caught off guard by the meeting, stood his ground. He spoke up telling his teammates that a return was still the goal. But Leonard offered no set date or guarantee about a return this season.

Leonard did receive support from some teammates, urging him not to return until he feels healthy enough, sources told the Express-News.
The meeting lasted roughly five to 10 minutes with no clear update on Leonard’s plans.

Leonard previously told teammates he planned to return to play, according to Danny Green (who, incidentally, denied the ESPN report). Later, Leonard said he planned to play soon. But despite reportedly targeting a return a week ago, he remains out.

No matter how hard anyone pushes, nobody can seem to get a straight answer – which only adds frustration.

Some teammates are apparently more understanding than others, though. Adrian Wojnarowski of ESPN characterized the meeting as “tense and emotional at times” with teammates “expressing frustration and confusion.” Young adds Leonard “did receive support from some teammates, urging him not to return until he feels healthy enough.”

I’m sure everyone wants Leonard back only once he’s healthy enough, but that’s a vague standard. The Spurs have reportedly cleared him. Leonard and his own medical team haven’t. It wouldn’t be surprising if his teammates are also divided on whether or not Leonard should play.

When will he deem himself ready? If this meeting didn’t yield an answer, I don’t know what will.

Danny Green: Kawhi Leonard report ‘couldn’t be anymore incorrect’

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A pattern is emerging.

A report said there’s a disconnect between Kawhi Leonard and the Spurs. Leonard’s uncle denied it.

A report said San Antonio held a players-only meeting to implore Leonard to play. Danny Green denied it.


Adrian Wojnarowski of ESPN wrote the latest article. Michael C. Wright and Ramona Shelburne contributed. These are credible reporters.

At minimum, someone wants the information out there. That alone makes this an issue. The Spurs, so unaccustomed to dealing with this noise, are facing it now.

Is every detail in the report accurate? Is it accurate overall? I don’t know.

But Green is loyal to San Antonio. Him shooting down a report of disarray means something, but it doesn’t mean everything.