Olympics - Opening Day

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


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.

LeBron James with two-handed halfcourt bounce pass for assist (VIDEO)

LeBron James
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Perhaps LeBron James‘ most underappreciated skill has been his passing. He is rightly hailed as the most unselfish superstar of his generation, but being a willing passer is only part of it: he’s also as good at it as any point guard in the league. Case in point: this two-handed halfcourt bounce pass on Tuesday night, finding Richard Jefferson for an easy dunk:

Kobe gets great introduction, loud ovation in Philadelphia

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Kobe Bryant‘s relationship with his hometown of Philadelphia had its rocky sections — the Kobe’s Lakers beat the Sixers in the 2001 Finals, and then Kobe was booed during the 2002 All-Star Game —  but all was forgiven on Tuesday night.

In his final trip to Philly, he was given a framed Lower Merion High School jersey — that’s Kobe’s school, in case you forgot — and it was presented by Dr. J.

Then the fans welcomed him like you see above.

That pumped up Kobe, who scored 13 first quarter points on 5-of-10 shooting, his best quarter of the season.

Rumor: Nets testing trade waters for Bojan Bogdanovic

Bojan Bogdanovic, Otto Porter Jr.
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If you play for the Brooklyn Nets, and your name is not Rondae Hollis-Jefferson, expect you will come up in trade rumors this season.

First up on the block, Bojan Bogdanovic. The report comes from Mike Mazzeo of ESPN.

Bogdanovic is in the first year of a three-year, $11 million deal, which isn’t bad for a guy playing nearly 25 minutes a night and scoring 8.4 points per game. There is a lot of potential in his game, if developed in the right setting — he’s a good shooter out on the wing who works well off the ball. He seems to have regressed this season, but how much of that is due to the Nets and their guard play (and just generally struggling) is up for debate.

Is there going to be interest in him? Probably. As always, it is about the price, what the Nets will demand. Whether the Nets can get anything back they want is up for debate.

Right now a lot of GMs are testing the waters for players, judging the market. That is a long way from a trade happening. But don’t be shocked if the Nets make a deal or two before the February deadline.

Just a reminder that Joakim Noah would like some more run

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Joakim Noah is playing 20.6 minutes a night coming off the bench for Fred Hoiberg and the Chicago Bulls this season.

And he doesn’t like it. He wants more run. He was getting 10 minutes more a night last season under Tom Thibodeau, and Noah wants some of those minutes back. Nick Friedel of ESPN sent out a tweet that was a reminder of just that.

Three thoughts here.

1) Reducing minutes for guys who battle injuries every season by the time the playoffs roll around was one huge reason Fred Hoiberg was brought in to coach the Bulls and Tom Thibodeau was shown the door. This isn’t just Hoiberg, the minutes reduction comes from management. While it is possible Noah’s spot in the rotation shifts (he could start at some point) and he might get a little more run, the Thibodeau era is gone.

2) There are legit reasons for Noah to want to play. First, he is a competitor who doesn’t like sitting. Second, the Bulls’ defense is elite when he plays (allowing 95.5 points per 100 possessions) and the Bulls outscore opponents by 1.3 per 100 when he plays. Finally, Noah is in the final year of his contract and scoring just 3.1 points per game is not going to help him earn more cash in the next deal.

3) Barring injury to another big, don’t expect a change.