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.

How to start your Saturday night: Watching 15 minutes of best plays from NBA season

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There are no NBA playoff games Saturday night, the first night since the start of the postseason there hasn’t been one game. Don’t worry, there are two games on Sunday, including Game 7 between the Jazz and Clippers.

But if you need a Saturday night fix, this will have to do: 15 minutes of the best plays from last season, as compiled by NBA.com.

Go ahead, watch it. You’ve got nothing better to do.

 

Paul Millsap says the expected, he will “most likely” opt out of contract

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This is ranked right next to “overeating can lead to weight gain” on the list of surprising things, but we will dutifully report it anyway:

Paul Millsap is going to opt out and officially become a free agent this summer.

Atlanta’s owner as well as Mike Budenholzer, the coach and head of basketball operations, have both said they plan to do whatever it takes to re-sign Millsap with the Hawks. Millsap didn’t sound like someone eager to leave after the Hawks were eliminated from the playoffs Friday.

“It’s been great. I’m looking to expand this and see where the franchise can go. These last four years has been great. I couldn’t ask for anything more.”

Even with both sides singing Kumbaya, keeping Millsap in Atlanta likely means a five-year contract at or near the max, which for a 32-year-old player means the Hawks would regret the last year or two of that deal.

Not that the Hawks have much of a choice here, they have to come in big and keep him. For one, they can’t afford to lose Al Horford and then Millsap for nothing in back-to-back years. If they were going down the rebuilding road, they needed to trade Millsap at the deadline (or last summer) to make sure they got something in return. Atlanta explored trade options at the deadline, but then pulled back (rumored to be because of an edict from ownership, which didn’t want to see the team blown up after the Kyle Korver trade).

By not making that trade the Hawks signaled their intention to remain a good team — a 43-win team this season that got them the five seed — with Dennis Schroder and Dwight Howard, one that draws well at an arena that historically has not been that full, and see if they can add on. They strike me as a team that will win between 42-50 games a year and be middle of the pack in the East for the next few years, unless they can find a way to add an elite player (which is incredibly difficult).

But if the Hawks can’t re-sign Millsap, then the plan gets blown up. So expect them to come in with a big offer come July 1.

Milwaukee Bucks eager to build after strong finish to season

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ST. FRANCIS, Wis. (AP) — With the sting of their frantic but failed Game 6 comeback effort still fresh in their minds, the Milwaukee Bucks returned to their practice facility Friday morning to pack their things and head their separate ways.

The Bucks consider themselves a team on the rise in the Eastern Conference, a belief no doubt reinforced by a furious 14-4 run late in the season that propelled them to sixth place in the East and solidified by a strong, though inconsistent, effort against Toronto in the playoffs.

“We thought we were the better team,” forward Giannis Antetokounmpo said. “We thought we could beat the Raptors and go to the second round. We feel like we got the Raptors’ attention so hopefully next year … we can go deeper in the playoffs.”

To get to that next step, which includes gaining home-court advantage and winning a playoff series for the first time since 2001, a lot of work needs to be done. Milwaukee needs Antetokounmpo to continue his rapid development, but will be looking to young additions like Thon Maker and Malcolm Brogdon, the Bucks’ two picks in last year’s draft, to refine their bodies and their games this summer.

Maker was one of the biggest surprises in the league. The 15th overall pick was a relative unknown and figured, at the outset, to be a draft-and-develop pick. Instead, he made a strong impression on the coaching staff with his commitment to defense and made opposing teams panic with his ability to shoot the 3 and wound up starting all six playoff games.

“It was amazing,” Maker said. “Unexpected. I thought I was just going to be on `Project: Build Maker’ and build my body but that’s (what I’m doing) this summer now. I thought that’s what this year was going to be about but everything turned around. I worked hard and it turned out to be way more than I expected. I don’t like the end results – it could have been way better – but you live with the results and you learn.”

Brogdon might have been an even bigger surprise. He was Milwaukee’s second-round pick and began the season on the bench behind free agent acquisition Matthew Dellavedova. But he, too, put in the work and by season’s end, was not only the starting point guard but a key piece of the Bucks’ core.

“I think it’s strong,” Brogdon said of Milwaukee’s nucleus. “I think it’s going to be one of the strongest in the NBA, as long as we’re able to stay together and as long as we’re able to stay healthy. I think we’re going to be one of the best teams in the NBA.”

The Bucks have been in this position before. They were considered a team on the rise in 2010, when they forced the Hawks to seven games but stumbled the next season and didn’t return to the postseason until sneaking into the eighth spot in 2013.

Two years later, Milwaukee was thought to be a sleeper after the Bucks finished .500 in Kidd’s first season at the helm, but again they faltered the next season and missed the playoffs.

Maintaining the momentum will be a major focus as preparations begin for the next season.

“My first year we had seven or eight free agents, so we knew that wasn’t going to be the same team,” forward John Henson said. “(The) second year we had a new coach, more free agents.

My third year coach Kidd coming in, we knew there was going to be some stability. He’s had the same core guys and this is what happens; not have a letdown like we did the year before.”

Milwaukee should benefit with some roster stability. The team’s young core appears set in place with Antetokounmpo, Henson and Khris Middleton locked into long-term contracts, as are Dellavedova and Mirza Teletovic.

Tony Snell, who went on to start 80 games after being acquired late in training camp, is a restricted free agent. Greg Monroe, who became one of the league’s best sixth men, holds a player option for next season.

The Bucks will likely be open to bringing back veteran guard Jason Terry for a 19th season, too.

“I think that’s how you become a team that doesn’t regress next year – keeping some of the pieces together,” Henson said.

General manager John Hammond also faces a tough question with Jabari Parker, who will miss at least the first half of the 2017-18 season after tearing his ACL in February. The No. 2 overall pick in the 2014 draft is eligible for a contract extension this summer and was in line to earn something close to the $100 million Milwaukee gave Antetokounmpo last year.

Lonzo Ball, other top draft picks expected to skip NBA Combine

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The NBA Draft Combine invites started going out Saturday — about 60-70 players are expected to be invited to a gym in Chicago for a couple of days of measurements, interviews, and tests, with a little basketball thrown in. The idea is for teams to get an up-close look (and accurate measurements) with guys they are going to invest time and, in some cases, millions of dollars in over the next several years.

However, the guys at the top of the draft are not going to be in Chicago, as Shams Charania and Bobby Marks of The Vertical at Yahoo Sports noted.

This is the same as with the NFL combine, the top picks see only bad things that can happen by taking part, there’s no upside but their stock could fall, so they stay away.

That’s not about to change. Also, a lot of international players skip the combine. That opens up some slots for more fringe guys, players who may or may not get drafted in the second round, to come in and impress. (Check out Jonathan Givony’s Twitter timeline to get a sense of who got invited and who didn’t.)

Teams looking at drafting the top handful, the elite guys, have already had scouts watch every college and many high school games, not to mention seeing their AAU teams and catching them at things like the Nike Summit or Adidas Nations events. They’ve talked to the guy’s former coaches and others around him, they have a good sense of who he is and is not.

Well, as much as one can in any draft. It’s still a crap shoot. A player can have all the skills, all the physical gifts, be a good person, but what happens once they face real adversity? Or, have to deal with money and temptations? What would you have been like at age 20 with millions of dollars and all the hedonistic temptations of the NBA lifestyle thrown at you? Or, how do does a team know which young players with some very raw skills have the drive and passion for maximizing those talents? Predicting how a 19- or 20-year-old will mature is not an easy task.