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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.

Gallinari ready to take big role in new Nuggets offense

Danilo Gallinari, Jimmy Butler
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DENVER (AP) — Danilo Gallinari wants everyone to know this: His surgically repaired left knee, the one that took three procedures to fix and nearly two seasons to fully trust, no longer bothers him.

The Denver Nuggets forward doesn’t need to be on any sort of minutes restriction. He doesn’t need days off during the season. And he certainly doesn’t need to be coddled.

He’s Gallo again, the hard-to-guard Italian playmaker who can knock down the 3-pointer just as easily as drive to the hoop or even post up. He believes he will fit in quite nicely into new coach Michael Malone’s system.

“The thing I’m focused on is trying to get (this team) back to the same level that the Nuggets were when I got to Denver, when we were going to the playoffs easy. When we were clinching a playoff one or two weeks before the season was over,” said Gallinari, who was acquired in the 2011 blockbuster deal that sent Carmelo Anthony to the New York Knicks. “We need to get back to that level.”

Almost seems so long ago, given that the Nuggets have missed the playoffs two straight seasons after consistently making it for nearly a decade.

Gallinari returned last season for the first time since blowing out his knee in a game on April 4, 2013. His minutes were closely monitored early in the season. He never really got completely on track until late last season, when he averaged 20.5 points over the final 10 contests, including a career-high 47 against Dallas. He’s hoping to carry that kind of confidence this season.

“I’m good to go. I was good to go as soon as the beginning of last year,” Gallinari said. “I was not on the same page with the coach that we had.”

That would be Brian Shaw, who was fired last March after 1 1/2 seasons in charge and going 56-85. Exactly why he wasn’t on the same page with Shaw, well, Gallinari preferred the past remain the past.

“I’m ready to play the new season,” he said. “We need to win games, and get back to the same level we were before.”

Gallinari thinks the Nuggets have the personnel to do just that, especially with a rookie point guard in Emmanuel Mudiay and Gallinari’s knee feeling better than it has in a while. He feels like he has some ground to make up, too, since he said that knee robbed him of some of his prime.

“Playing my best basketball right before I got injured,” the 27-year old said. “Now, we’re back to the same level, hopefully better.

“My knee has been feeling great. It felt great last year. Feeling great during the summer. Feeling great now. I just feel good.”

He spent the summer playing for the Italian team at the EuroBasket tournament, where he averaged nearly 18 points a game. In those games, Gallinari saw quite a bit of time at the four spot on the floor, forcing teams to either use a bulkier big man to cover him and risk getting burned on a drive or a smaller player that Gallinari could simply shoot over.

Malone plans to employ a similar type approach, something they discussed over gelato when the coach visited Gallinari in Italy soon after he was hired.

“He’s 6-foot-10. He can handle the ball. He can play pick-and-roll. He can stretch the floor and shoot the 3,” Malone said. “There’s not a lot he can’t do offensively.”

Gallinari wants the responsibility of being the go-to player for the Nuggets this season, especially at crunch time.

“I’ve always been trying to do that, since I came to Denver,” Gallinari said. “That’s what I like to do. I feel good filling those shoes.

“I want to have the ball in my hands. I do want to have the ball in my hands a lot more.”

Knicks’ Rookie Jerian Grant gets up, throws it down (VIDEO)

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The Knicks did well trading for Jerian Grant on date night — he’s going to be able to walk in this year and play quality minutes off the bench.

And, he can get up and throw it down.

Carmelo Anthony had 18 points to lead the Knicks to a 94-88 win over the Sixers.