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.

Russell Westbrook threw it down all over Michael Kidd-Gilchrist

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A rough night for the Thunder will not stop the Russell Westbrook highlights.

The Thunder had another poor game and fell to a Hornets. Westbrook tried to push the team back, but the Thunder defense that has kept them in games all season was not good enough against Charlotte, and the OKC offense was once again up and down.

Westbrook had 30 points on 22 shots on the night, and none of them were as impressive as this transition throwdown on Michael Kidd-Gilchrist.

Jahlil Okafor excited about fresh start with Nets

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NEW YORK (AP) — Jahlil Okafor finally got the fresh start he wanted.

Okafor was the consensus No. 1 high school player in his class, won a national championship at Duke, and averaged 17.5 points and seven rebounds in his rookie campaign for the Philadelphia 76ers.

Then things changed drastically.

Okafor struggled with injuries and a logjam at his position in his second season.

“When I first got drafted there, we already had Nerlens (Noel) there, Joel (Embiid) was there, so we’re trying to have three starting centers on the same team,” Okafor said Monday at his introductory news conference with his new team, the Brooklyn Nets.

“It just never really was the right fit.”

The 76ers traded Okafor along with seldom-used guard Nik Stauskas and two draft picks to the Nets on Thursday. Philadelphia got forward Trevor Booker from Brooklyn.

Okafor also had off-court problems during his time in Philadelphia. He got a speeding ticket for driving 108 miles per hour and was suspended by the 76ers for two games after in an altercation outside of a Boston nightclub with a heckler.

“Speeding obviously is illegal,” Okafor said. “I know that’s not what you’re supposed to do. I guess you just learn how the page can turn on you and how everything can flip. I can’t really say I learned anything, because you know going in that’s not right. You just learn from your mistakes, but (it was) a tough thing that I went through, I got past, and I’m looking to better times now.”

Okafor, the third overall pick in the 2015 draft, joins D'Angelo Russell, the second overall pick in the same draft class, on the Nets.

“We’re just very excited to get on the court together,” Okafor said. “You never would’ve thought the number two and number three picks would be playing on the same team a few years after, but like I said, everything happens for a reason and I’m really excited.”

Russell also had problems on and off the court with the team that drafted him. He was criticized for recording a video of former Lakers teammate Nick Young that aired sordid details about Young’s private life. The Lakers gave up on Russell and drafted Lonzo Ball as his replacement.

“I feel like we’re similar in that we have a lot to prove,” Okafor said. “I know he’s working his (butt) off as well. Right now he’s rehabbing, trying to get back on the court. I think we both have a chip on our shoulder and we have a lot to prove. We’re definitely similar in that regard.”

Okafor understands he has areas to improve, mainly defense and rebounding.

“I’m not a perfect player,” Okafor said. “I’m 21. There are things that I need to work on, that I have worked on and that I’ll continue to work on.”

He’s excited about fulfilling his potential with a new team.

“I feel really motivated right now, but I’ve always been motivated,” Okafor said. “This is the first time where people are against me in a sense because I’ve always been the hyped-up guy. It’s something new for me to experience, so I’m glad that I am experiencing it.”

 

Report: Celtics’ Marcus Morris to miss “extended time” to let knee heal

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Marcus Morris missed the Celtics’ first eight games of the season in an effort to get healthy. Upon his return he’s been solid, first as a starter, then coming off the bench, but his left knee continued to be an issue.

Morris was out Sunday when the Celtics beat the Pistons, and he’s going to miss more time trying to get a troublesome left knee right, reports Shams Charania of The Vertical at Yahoo Sports.

How much time is “extended time?” Probably at least a couple of weeks.

Morris has averaged 12.1 points and 5.5 rebounds a game this season, with a true shooting percentage of 52.5, which is right around the league average.

This could mean more run for rookie forwards Semi Ojeleye and Daniel Theis, both of whom have played well in limited minutes.

Tristan Thompson expected to return to Cavaliers Tuesday, come off bench

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INDEPENDENCE, Ohio (AP) — Cleveland Cavaliers center Tristan Thompson could play for the first time since Nov. 1 on Tuesday against Atlanta.

Thompson has been sidelined with a strained left calf. The team initially said Thompson would be out for up to four weeks, but he said Monday that timeline was inaccurate and that his injury was more serious. Thompson did not divulge any other details about the injury.

Coach Tyronn Lue says Thompson will not start when he returns, meaning Kevin Love will remain at center. Thompson says he’s fine with a reserve role and made it clear he’s willing to do whatever Lue needs.

The Cavaliers have won 14 of 15 and their defense has improved dramatically over the past month.

Thompson says he’ll have the same mindset on the floor as always and “just be myself. Being myself has worked out pretty well for me.”