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

69 Comments

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.

Hawks, coach Mike Budenholzer agree to part ways

Getty Images
5 Comments

This was expected.

It was pretty obvious Mike Budenholzer didn’t want to stick around and lose a lot of games with the Atlanta Hawks as they rebuild the next few years, especially after he had been stripped of his GM powers. Budenholzer went well down the road with the Phoenix Suns about their open coaching position before thinking better of it. Since then he has set up a meeting with the Knicks about their coaching vacancy, a job he reportedly wants badly.

At this point there was no need for the Hawks and Budenholzer to continue their sham marriage, so they have agreed to amicably separate, a story broken by Adrian Wojnarowski of ESPN and since confirmed by the Hawks.

Budenholzer said this to Wojnarowski of ESPN:

“I am grateful for the five years that I spent as coach of the Atlanta Hawks, and will always cherish the incredible contributions, commitment and accomplishments of the players that I was fortunate enough to work with here,” Budenholzer told ESPN on Wednesday night. “From ownership to management, support staff to the community, I’ll look back with great pride on what we were able to achieve together with the Hawks.”

For Budenholzer, the long-time Spurs assistant and a strong Xs and Os coach, look for him to both push for the Knicks job and be in the running if/when the Milwaukee Bucks job opens up whenever their season ends. In both cases he’s a fit — those are teams that need a culture and system reset, and Budenholzer proved he can bring that to Atlanta (that was a good team before they let Al Horford and Paul Millsap walk for nothing).

With Atlanta, they likely will turn to a top assistant coach who will get a chance to develop young players on that team (and not cost Atlanta as much as an established coach). Stephen Silas of the Hornets is a rumored name, but there are others.

LeBron James overrules controversial finish with game-winning 3-pointer (video)

10 Comments

LeBron James‘ turnover with the game tied late looked like a bad call. LeBron’s block of Victor Oladipo on the ensuing possession looked like a goaltend.

Did the Cavaliers get robbed of a crucial possession? Did the Pacers get robbed of two go-ahead points?

LeBron nullified those questions with a buzzer-beating 3-pointer to give Cleveland a 98-95 win and a 3-2 series lead. The game-winner capped a great game by LeBron (44 points, 10 rebounds and eight assists) and moves the Cavs to the verge of advancing.

When a team with home-court advantage can close out a best-of-seven series with a road Game 6, it has 52% of the time. It has won the series 92% of the time.

The odds are even better with LeBron. LeBron has won 11 straight closeout games, nine of them on the road. He’ll have another opportunity Friday with Game 6 in Indiana.

Raptors’ ‘culture reset’ shines in Game 5 win over Wizards

AP Photo/Carlos Osorio
1 Comment

The Raptors promoted ball movement. They emphasized 3-point shooting. They empowered their reserves.

This was why.

Backups Delon Wright and C.J. Miles and starting center Jonas Valanciunas – who was benched in previous postseasons due to his old-fashioned style, but expanded his game beyond the arc this year – scored Toronto’s final 18 points in a 108-98 Game 5 win over the Wizards on Wednesday. Stars DeMar DeRozan (0-for-4 from the field) and Kyle Lowry (0-for-1 from the field, 0-for-2 on free throws) struggled down the stretch, as the Raptors burst open what had been a one-point lead.

Though DeRozan (32 points) and Lowry (17 points and 10 assists) were good overall, they succumbed late in previous playoff games. Toronto didn’t want that duo stuck with the burden of creating so much in a stagnate offense.

Hence, Masai Ujiri’s famous “culture reset.”

The results have been mixed so far against a tougher-than-average-eight-seed Washington. But at least the Raptors – up 3-2 entering Friday’s Game 6 in Washington – are on the verge of advancing.

When a team with home-court advantage can close out a best-of-seven series with a road Game 6, it has 52% of the time. It has won the series 92% of the time.

Raptors honor victims of van attack before Game 5 (photos)

Dave Sandford/NBAE via Getty Images
1 Comment

TORONTO (AP) — The Toronto Raptors honored the victims the deadly van attack Monday with a moment of silence Wednesday night before Game 5 of their playoff series against the Washington Wizards.

Players from both teams held up banners with the hashtag #TORONTOSTRONG as they stood on the court during the tribute and the national anthems that followed:

The Raptors, the Wizards and the NBA will make a donation to a fund for victims and those affected by the incident.

Raptors President Masai Ujiri spoke about the attack after the Raptors practiced Tuesday.

“What we do doesn’t really matter sometimes,” Ujiri said. “I can’t imagine what it would be like to be on that sidewalk.”

Guard Kyle Lowry said he was impressed by the actions of Const. Ken Lam, who earned international acclaim for peacefully arresting of suspect Alek Minassian.

“In America he would definitely have been shot up,” Lowry said. “He did an amazing job of making a judgment call. I think more people could learn from that.”

Coach Dwane Casey was struck by how close the carnage occurred to his own Toronto neighborhood,

“It’s not too far from up the street from where I live,” Casey said.

Casey and his coaches were in the midst of a meeting Monday afternoon when assistant Rex Kalamian’s phone buzzed with someone informing him of the tragedy. The coaches stopped their meeting and turned on a television to find out what had happened.

“It’s very unfortunate,” Casey said. “Just this weekend I was talking to people saying how safe Toronto is, how it’s a melting pot and you don’t have the same crime. Hopefully though, sport can offer a relief, some reprieve.”

Like Casey, Ujiri said he is proud of Toronto’s reputation as a safe, welcoming place.

“Everywhere I go, I brag about this city,” Ujiri said. “It’s the safest place in the world. It’s the best city in the world and it’s going to continue to be the best place and the best city in the world.”

Toronto police said the 10 people killed and 14 injured in the attack were “predominantly” women, but have declined so far to discuss a motive. The 25-year-old Minassian has been charged with 10 counts of first-degree murder and 13 counts of attempted murder.