Stricter luxury tax penalties in new CBA could actually help big market teams


The NBA’s lockout prior to the 2011-12 season was certainly all about money, and how the owners could channel more of the league’s revenue into their pockets instead of those of the players.

But it was also about putting a system in place that would, in theory, make it more difficult for the teams in the largest markets to simply spend their way to a title.

While the new, harsher luxury tax penalties put into place make it severely punitive financially to go out and exceed the tax threshold season after season, there is a loophole that exists which works to the advantage of the large market teams in the long run, while working against their small-market counterparts.

From Larry Coon at HoopsWorld:

The first year of the repeater tax (2015) will only apply to teams that were also taxpayers in the three previous seasons — 2011-12 through 2013-14. So right now, only Boston and the Lakers are candidates. The Celtics will probably stay out of the tax this season, and the Lakers are clearing the books next summer. So I don’t think any team will be a repeater in 2015.

Starting in 2016 a team is a repeater if they were taxpayers in any three of the previous four seasons (for 2016 that’d be 2011-12 through 2014-15). That means any team that was a taxpayer in either 2012 or 2013 would be a repeater if they are a taxpayer in both 2014 and 2015. Most teams will be able to avoid the repeater penalty. A few teams like Brooklyn probably won’t care.

The system is set up — well, “set up” is probably a bad way to put it. I don’t think they did it intentionally — so that two years out of the tax buys you three years IN the tax without being a repeater. I think many teams will adopt this strategy.

That last part is the key.

Take a team like the Celtics, for instance, who had no problem committing to payroll that would put them over the tax threshold when they were trying to contend for a title over the last few seasons. They’re rebuilding this year and next at minimum, but after those two years out of the tax, they could add free agents and load up for another run at a title by spending whatever it costs for the next three seasons, all the while avoiding the dreaded repeater tax.

There are very few teams that won’t try to implement this strategy. This summer, we saw the Heat use the amnesty provision to waive Mike Miller, even after he was a part of winning back-to-back titles, because the move saved them a total of $17 million in salary and luxury tax costs. And we saw the Lakers make a similar move to cut costs when they waived Metta World Peace.

The Nets are one club that doesn’t seem to care about dollars, but they’re certainly in the minority. Most large market teams will use payroll to chase championships when the talent on the roster dictates it. Small market teams, wary of even the more basic tax threshold, still won’t be able to meet that standard.

Rumor: Magic expected to fire Frank Vogel

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Magic president Jeff Weltman inherited an expensive and bad roster, limiting his options to shape it.

He also inherited coach Frank Vogel, and maybe there’s something Weltman will do about that.

Marc Stein of The New York Times in his newsletter:

Orlando’s ongoing malaise, especially after the promise of an unexpected 8-4 start, make it a widely held assumption in coaching circles that Vogel will be dismissed after the franchise’s sixth successive season out of the playoffs.

Perhaps, these people in coaching circles are doing nothing more than connecting dots. Many coaches with poor records – only the Suns and Nets have been worse during Vogel’s two-year tenure – inherited by a new front office get fired.

Or it could be something more concrete, like Orlando putting out feelers for potential replacements. That possibility gives juice to this report.

Vogel has one more guaranteed year left on his contract, according to Josh Robbins of the Orlando Sentinel. Will ownership pay to oust Vogel? That seems likely. The alternative is paying Weltman to sit on his hands.

This would be a tough break for Vogel, who coached well with the Pacers. The Magic’s roster is just so lacking. Vogel hasn’t impressed in Orlando, but his opportunity to do so has been narrow.

At least it’d be more understandable if he got fired by a losing team. Last time, he got fired by a winning team.

Rumor: Bucks, Jabari Parker could part after season

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Jabari Parker is a confounding fit on the Bucks now and in the future.

Could he and Milwaukee part ways this summer, when he’ll be a restricted free agent?

Gery Woelfel on 105.7 The Fan:

At this very moment, I’d say the odds are slim to none it’s going to happen … that he’ll be on this team next year.

I just don’t see a good fit there. I didn’t bring this up, and I’ve been meaning to do so, but I haven’t. He came very, very close to being traded at the deadline. And I think that spoke volumes of they think of Jabari Parker and whether he’s a part of their future plans.

Bucks executive Alex Lasry denied it:

So did general manager Jon Horst. Matt Velazquez of the Milwaukee Journal Sentinel:

Horst made it clear both on the radio and in a separate interview with the Journal Sentinel on Wednesday that the Bucks never had any intention of trading Parker

Teams often discuss trading players then deny it to avoid offending the player. Whether or not they nearly traded Parker, the Bucks would probably respond now similarly.

As far as Parker’s future in Milwaukee, it’s unclear where the well-connected Woelfel’s reporting ends and his analysis begins. There’s a huge difference between trading Parker for value and letting him walk for nothing. Just because the Bucks came close to trading Parker wouldn’t mean they won’t re-sign him.

Shedding Parker would not open cap space without additional moves. It would probably allow Milwaukee to use the full mid-level exception and stay beneath the luxury-tax line. But that’s unlikely to land a player who combines Parker’s age and talent.

Because Parker will be a restricted free agent, the Bucks hold the cards. If he’s upset about trade talks or anything else, he can’t unilaterally leave.

Milwaukee must determine how much to pay Parker and how to utilize him with Giannis Antetokounmpo. Those are hard questions. But the Bucks throwing up their hands and letting Parker walk in free agency isn’t the answer.

Tony Parker: My quad injury 100 times worse than Kawhi Leonard’s

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Tony Parker reportedly led a players-only meeting in which Spurs implored Kawhi Leonard to return.

Leonard injured his quad last season, has played just nine games this season and remains sidelined. The Spurs have reportedly cleared him, but he got second opinions and is waiting for his medical team to clear him.

Parker injured his quad last May then returned in November – and said at the time Leonard would return in 2-3 weeks.

Tom Orsborn of the San Antonio Express-News:

It’s not hard to read between these lines.

Though some Spurs reportedly told Leonard to return only once he feels ready, Parker is clearly applying pressure. It’s not working, but he’s apparently not stopping.

These comments don’t befit a healthy organization, which is just so stunning for the Spurs, whose excellent culture has been exalted for year.

Maybe Parker will get his wish, and a shamed-into-playing Leonard will lead San Antonio deep into the playoffs. But it seems more likely these quotes will just increase tension.

Celtics: Kyrie Irving to undergo ‘minimally invasive procedure’ on injured knee

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With uncertainty surrounding Kyrie Irving‘s knee injury, the Celtics announced a course of action.

Celtics release:

The Boston Celtics announced today that guard Kyrie Irving will tomorrow undergo a minimally invasive procedure to alleviate irritation in his left knee. Further information will be provided following tomorrow’s procedure, and the team will have no further comment until that time.

This is so vague. We barely know more than we did before.

Irving reportedly might need the pins removed from his knee, so that’d be the first guess at the type of procedure. But that’s just a guess.

The Celtics look vulnerable with Irving hobbled, which is big update from yesterday, when the Celtics looked vulnerable with Irving hobbled.