Olympics - Opening Day

The real question: How much tax is Oklahoma City willing to pay?

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Clay Bennett and the Oklahoma City ownership has said before they are willing to pay some luxury tax to keep the core of their team together.

Next year that will be put to the test.

They have Kevin Durant and Russell Westbrook on max deals, and they just signed Serge Ibaka to a four-year, $48 million deal. Next up is James Harden. Next summer he will become a restricted free agent and unless the Thunder can convince him to take less he is going to get a max offer on the open market from someone. A number of teams will have the cap space (probably about 10, depends on moves between now and then) to make a max offer and Harden — Sixth Man of the Year, gold medalist, marketable — will get one.

The Thunder can match. But if they do they are paying the tax, and how much is the team in the NBA’s smallest market willing to pay? Zach Lowe breaks down the numbers at Sports Illustrated’s The Point Forward blog.

If Harden gets that max deal from Oklahoma City, the Thunder will be paying the tax for at least the 2013-14 and 2014-15 seasons. Assuming a max deal for Harden and that Oklahoma City gets the No. 30 pick in each of the next two drafts, the Thunder would be set to have about $75.5 million committed to 10 players in 2013-14 and $77 million committed to the same number of players in 2014-15. Fill out the rest of the roster on the cheap — forget the mid-level exception — and Oklahoma City will be looking at $80 million payrolls in those seasons….

The tax line is at $70.4 million now, and it will go up as league revenues rise. But most projections have the tax line somewhere around $75 million in the 2015-16, and very solid growth (about 3 percent) would have it jump only to $72.5 million in 2013-14 and $74.6 million in the following season. Note again: These are estimates.

Under the harsh new tax rates that kick in for the 2013-14 — just in time! — the Thunder would be paying a tax bill ranging from $7.5 million to $12.5 million or so, depending on the exact tax level and how much the team’s ownership is willing to spend on the back of the roster. Is Oklahoma City, the league’s second-smallest market, willing to spend something like $85 million or even $90 million to fill a team?

I bet the answer is yes. They can save money by doing things like using their amnesty on Kendrick Perkins. More importantly, so long as the Thunder are winning they will be able to sell the luxury boxes and sponsorships at a premium, and the regular seats sell out every game to a very loyal fan base. I think the losses (if any, how NBA owners keep the books is murky) would be minimal.

The Thunder can’t afford to go Los Angeles Lakers with their payroll — Los Angeles with taxes and revenue sharing could be paying $230 million in a couple years to field a team at their current payroll levels — but they can afford some tax. They can afford to chase the ring.

The Thunder will be what the Heat and Lakers are, what future contenders will look like — a handful of highly-paid stars surrounded by the best they can get on inexpensive contracts. It is the wave of the future.

Is this the moment DeMarcus Cousins found out he was traded? (video)

NEW ORLEANS, LA - FEBRUARY 18:  DeMarcus Cousins #15 of the Sacramento Kings attends practice for the 2017 NBA All-Star Game at the Mercedes-Benz Superdome on February 18, 2017 in New Orleans, Louisiana.  (Photo by Ronald Martinez/Getty Images)
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NEW ORLEANS — DeMarcus Cousins was set to answer questions after the All-Star game, when a Kings public-relations official said, “All-Star questions first, please. All-Star-game questions.”

“What other questions we got?” Cousins asked, seemingly unaware of his trade to the Pelicans.

The PR person whispered in Cousins’ ear.

“Oh, really?” Cousins asked.

More whispering.

“It’s whatever,” Cousins said.

Then, asked about his All-Star experience, Cousins smiled big and said, “It was amazing, man. I enjoyed the city of New Orleans. I love it here in New Orleans.”

West bench goes wild over Kevin Durant-Russell Westbrook alley-oop (video)

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NEW ORLEANS — Kevin Durant and Russell Westbrook connected on a fantastic alley-oop in tonight’s All-Star game, but the reaction of the Western Conference bench was even better.

Both Durant and Westbrook downplayed the play after the game, but not everyone agreed.

 

“Defining moment in history right there,” All-Star MVP Anthony Davis said.

 

Report: Kings agree to trade DeMarcus Cousins to Pelicans for Buddy Hield, several picks

NEW ORLEANS, LA - FEBRUARY 17: Anthony Davis of the New Orleans Pelicans talks to DeMarcus Cousins of the Sacramento Kings during the NBA All-Star Celebrity Game at the Mercedes-Benz Superdome on February 17, 2017 in New Orleans, Louisiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Jonathan Bachman/Getty Images)
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NEW ORLEANS — There has been a faction within the Kings organization that wanted to move DeMarcus Cousins for a while, even though they wouldn’t get equal value back, even though it would mean extending their decade-long playoff drought and rebuilding all over again. Despite Cousins’ unquestioned talent on the court, some in the franchise questioned if they could build a consistent, quality team with him as the cornerstone and pointed to the win total in recent years as their example.

For years, Sacramento owner Vivek Ranadive stood in the way of that — he was Cousins’ biggest supporter in the organization.

However, that changed recently according to a source near the Kings, and once it did things moved quickly for Cousins to be traded to the Pelicans in a blockbuster move that few in the league saw coming this quickly or at this low a price. Adrain Wojnarowski of The Vertical at Yahoo Sports broke the trade, while Marc Stein of ESPN followed up with details.

This is a big win for Pelicans’ GM Dell Demps, who has been on the hot seat for his inability to put a good team around his All-NBA star in Davis. It’s a move that comes with risks, but risks the Pelicans needed to take. How well Davis and Cousins can play together remains to be seen, and the team still desperately could use more shooting. The biggest challenge will be re-signing Cousins, who has one year left on his deal after this one (and now cannot be signed to a designated player supermax deal the Kings allegedly were going to offer). Look at what Cousins’ agent said.

Kings GM Vlade Divac was known to be a big Buddy Hield fan heading into the last draft (the Pelicans took him a few spots ahead of the Kings’ pick). Why he still seems to be this high on him is a mystery. If these picks are 2017 ones, as reported, that helps a little as this is considered a deep draft. However, it’s still not anywhere close to equal value and the Kings will take a massive a step back — and they weren’t far forward already. The Kings’ front office reportedly presented Ranadive with the two best choices, and he went with this one. The trade is the first step in a long rebuild for a Sacramento fan base that is understandably hurt. 

The next question for Ranadive is if Divac is the guy to lead that rebuild?

Cousins himself played only two minutes in the All-Star Game Sunday, a sign something was up. Davis, who was the All-Star Game MVP scoring a record 52 points, was asked about Cousins before the trade was announced.

“He’s a great player, dominant in this league, of course, with all the numbers he put up. But I haven’t heard anything,” Davis said.

Cousins also said knew nothing about the deal when he spoke to the media, and added he was just frustrated that once again he was at the All-Star Game and the focus was on trade talk surrounding him.

“Give me a break. I just need one All-Star where it’s just All-Star questions man,” an exasperated Cousins said. “This is my third one and it’s always been something… It’s disappointing I’m spending another All-Star talking about the Kings rather than my All-Star experience.”

As for if he wanted to play in New Orleans (that rumor had been flying around the Smoothie King Center all night), Cousins simply said, “if it happens it happens” and that he was happy in Sacramento.

Cousins said he hadn’t heard from Divac or anyone, and West coach Steve Kerr said that he only played Cousins two minutes in the All-Star Game at Cousins’ request because he is banged up and wanted to rest. Nobody is buying any of this, but that’s what they said.

 

Anthony Davis sets All-Star game record with 52 points, wins MVP, gets DeMarcus Cousins as teammate

Western Conference forward Anthony Davis of the New Orleans Pelicans (23 ) slam dunks during the first half of the NBA All-Star basketball game in New Orleans, Sunday, Feb. 19, 2017. (AP Photo/Gerald Herbert, Pool)
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NEW ORLEANS — After an exhausting game to cap an exhausting weekend, Anthony Davis finally sat down and let his guard down.

“Aw, f—,” Davis said.

The the biggest problem appeared to be that Davis was in front of a room jammed with media, but his harmless lapse to begin his post game press conference was collectively forgiven with a laugh.

The bigger, not-yet-know issue issue: It was too early for the Pelicans star to relax.

After handling All-Star hosting duties in New Orleans, setting an All-Star game record with 52 points and winning MVP, Davis saw the Pelicans trade for DeMarcus Cousins.

“He’s a great player, dominant in this league,” Davis said when the deal was still in the rumored stage.

Cousins will finally give Davis a star teammate and push the Pelicans closer to playoff contention. Davis said he didn’t recruit much this weekend, but he clearly delivered for New Orleans by winning All-Star MVP.

“It was amazing,” Davis said. “That’s what I wanted to do. I stressed that, I think more than enough, to the guys in the locker room before the game. I wanted to get MVP for this crowd, for this city. The guys did a great job of finding me.”

Davis played 31 minutes and 50 seconds — the most in the last three All-Star games. His 52 points broke Wilt Chamberlain’s All-Star record of 42 points in 1962 — the season Chamberlain set NBA records with 50.4 points per game and scored 100 in a single game.

“The next one I’m going to try to do is 100 points,” Davis said.