Teams Close To The Tax Line
As Thursday's trade deadline approaches, one of the most pressing concerns for many league executives will be whether a proposed deal will push their teams into or out of the league's luxury tax. This year, the tax threshold is $70.307MM, and any team that finishes the season above that figure must pay the league a dollar for each dollar it exceeds the cap.
Next season, the penalties become even more severe, as taxpaying teams will have to pay at least $1.50 for every dollar over. Teams above the tax "apron," the point $4MM above the tax line, will no longer be able to accept players in sign-and-trade deals as of this summer. In 2014/15, teams that have been taxpayers for at least three years in a row get socked with an even stiffer tax rate of at least $2.50 for each dollar over. Executives who are looking ahead may want to avoid the tax this year to get out of that repeater rate.
The league uses a slightly different formula than its standard team salary measurements to determine which teams must pay the tax, counting only the bonus money the team pays out at the end of the year, rather than projected figures. The NBA also adds the difference between a first- or second-year player's minimum salary and what a third-year player would make to a team's tax figure, moving some clubs a few hundred thousand dollars higher. That means some teams are either slightly closer or farther away from the tax than indicated here, but not by so much that it pushes a club over or under the line.
The Grizzlies have already made a pair of trades that took them from about $4MM over the tax line to more than $8MM below it. So, they're not on either list here showing teams less than $5MM above and below the tax. The numbers have been rounded to the nearest $1K.
Teams less than $5MM above tax line
- Warriors: +$849K
- Celtics: +$1.275MM
- Bulls: +$3.754MM
Teams less than $5MM below tax line
- Spurs: -$749K
- Thunder: -$826K
- Clippers: -$953K
- Pistons: -$1.741MM
- Jazz: -$3.237MM
- Hawks: -$3.378MM
- Raptors: -$3.379MM
- Pacers: -$4.013MM
HoopsWorld, ShamSports and Larry Coon's NBA Salary Cap FAQ were used in the creation of this post.
Kings Rumors: Trades, Arena, Spurs
Talk about Sacramento, Seattle and the future of the Kings dominated the yesterday's joint press conference held by commissioner David Stern and deputy Adam Silver. Stern said that he doesn't believe the tug-of-war between Sacramento and Seattle will ultimately come down to money, as Tom Ziller of Sactown Royalty notes, but the Bee's Ailene Voisin believes Stern made it clear that economics are at the heart of the matter. Here's more about whether players or the team itself will soon be departing Sacramento:
- The team has the second-worst record in the Western Conference, at 19-35, but Kings GM Geoff Petrie said "it's very unlikely" he'll trade away any of the team's top players, as Jason Jones of the Sacramento Bee notes.
- The NBA vetted Sacramento's arena plan last year, and mayor Kevin Johnson believes that, coupled with a lack of pending lawsuits, gives the city an advantage over Seattle, as Cowbell Kingdom's Jonathan Santiago observes, via Sulia.
- Mike Monroe of the San Antonio Express-News compares the small-market Spurs and Kings, noting that while San Antonio's newer arena has helped keep the Spurs in town, its isolated location on the east side of the city could cause trouble in the future.
Latest On Josh Smith
10:07am: The Suns aren't among the teams making a play for Smith, as Mitch Lawrence of the New York Daily News writes at the end of his league-wide roundup. They, like other teams, are wary of giving Smith a max deal in the summer, according to Lawrence.
9:00am: The Bucks, Nets, Celtics, 76ers and Wizards are among the many involved in talks for Hawks forward Josh Smith, tweets Adrian Wojnarowski of Yahoo! Sports. Other teams are engaged as well, and there's a strong belief that Smith will be on the move before Thursday's trade deadline, according to Wojnarowski. Smith will be an unrestricted free agent at season's end, and he believes he's deserving of a maximum-salary contract. It appears as though the Hawks are unwilling to meet that demand, and that has apparently sparked interest in a deal.
The Nets were reportedly making a strong push for Smith as recently as a week ago, but it's clear they have competition. The Hawks seem to be in a position of strength, with multiple teams going after a player who's likely the best player on the trading block as the deadline approaches. Atlanta, with less than $18.5MM in firm commitments for next season, looks like it's set up to have the cap room to add a pair of maximum-salary players this summer. Dwight Howard is an Atlanta native, so the Hawks could be a viable option if he elects not to re-sign with the Lakers. When I examined Smith's trade candidacy a couple of weeks ago, I predicted Hawks GM Danny Ferry would hold on to Smith in hopes that he might want to recruit Howard, the best man in his wedding, back to Georgia. Even if that doesn't happen, and Smith signs elsewhere, the Hawks would at least have a ton of cap room to play with.
Marc Stein of ESPN.com reported a week ago that the Hawks are looking for "a quality young center" in return for Smith. That's an asset the Celtics don't possess, and I'm not sure either the Nets or Hawks would have interest in including Brook Lopez in a Smith deal. Larry Sanders of the Bucks, Kevin Seraphin of the Wizards and Spencer Hawes of the Sixers are young centers who've shown promise, but perhaps not enough to entice Ferry and the Hawks.
Smith is making $13.2MM in the final season of his deal, which includes a 15% trade kicker. Since he signed his contract under the old CBA, the team that acquires him in a trade must pay the extra money. If Smith is traded at Thursday's deadline, the kicker would amount to approximately $1.3MM, or 15% of the prorated amount remaining on his salary this season.
Nuggets Likely To Stand Pat Despite Offers
Many teams want to engage the Nuggets in trade talks before the deadline, given Denver's stockpile of versatile players, but GM Masai Ujiri still appears unlikely to make a move, according to Adrian Wojnarowski of Yahoo! Sports (Twitter link). That's in line with coach George Karl's comments from a little over a week ago that there's only a slim chance the team will do a deal. The Nuggets have a $13MM trade exception that's the largest among those set to expire at the deadline, so that could be part of the reason teams continue to try to get the Nuggets to rethink their stance.
The Nuggets have hit the All-Star break in fifth place in the Western Conference, but despite a favorable schedule down the stretch, there are doubts about how far the team can go. Though Denver's front office is "projecting calm," the most common prediction that executives from other teams have about the Nuggets' playoff chances is that they'll be eliminated in the second round, as Grantland's Zach Lowe revealed this week.
Denver gauged the Celtics' interest in trading Kevin Garnett, but KG wouldn't waive his no-trade clause to head there. The Nuggets have fielded plenty of calls about Timofey Mozgov, though they appear unlikely to move the soon-to-be restricted free agent unless they get an overwhelming offer. Sam Amico of Fox Sports Ohio reported Friday that the Nuggets have interest in J.J. Redick, but conversation about him has dried up of late, since Redick, a free agent this summer, wants to stay in Orlando. Instead, the team could pursue a small-scale deal involving Wilson Chandler, Corey Brewer or Anthony Randolph, Amico wrote.
Mozgov, Brewer and Julyan Stone are the only Nuggets on expiring contracts this year. Andre Iguodala is set to make $16.155MM in the final year of his deal next season, but he has an early-termination option, and whether he exercises that seems likely to be the most significant storyline of the offseason for the Nuggets. He hasn't committed one way or the other, but he's expressed a desire to stick around in Denver.
Jazz, Clippers Interested In Millsap, Bledsoe Swap
There's mutual interest between the Clippers and Jazz in a deal that would have point guard Eric Bledsoe and power forward Paul Millsap trading places, report Ramona Shelburne and Marc Stein of ESPN.com. While Clippers vice president of basketball ops Gary Sacks says the team is not actively shopping Bledsoe or anyone else on the team's roster, it's clear the team is open to making a move of some kind, particularly with Bledsoe, who's also reportedly been at the heart of discussion with the Celtics about Kevin Garnett.
A pair of sources insisted to ESPN that the Clippers wouldn't make a move before the trade deadline, but two other sources gave Shelburne and Stein indications that the Clippers and Jazz will at least explore whether a Bledsoe-Millsap deal is workable. L.A. would have to add close to $6.4MM worth of salary to the deal to make the numbers match, as there's a wide gap between Millsap's $8.6MM take this season and Bledsoe's $1.7MM. Shelburne and Stein hear the Clippers are reluctant to break up their roster, given the team's 17-game winning streak earlier this season.
The Jazz have been giving mixed signals on whether they're more likely to trade Millsap or Al Jefferson, both of whom will be free agents this summer. The Nets appear to have interest in Millsap as well, and the Trail Blazers have also been linked to the power forward. Trading Millsap away would open up minutes for former No. 3 overall pick Derrick Favors at the four in Utah, and Bledsoe would strengthen the team's backcourt, which has been a weakness. Millsap would probably have to come off the bench for the Clippers, unless coach Vinny Del Negro wanted to play him or Blake Griffin out of position.
Odds & Ends: Aldridge, George, Oden, Knicks
The latest news and notes from around the NBA on Saturday evening:
- There hasn't been much trade chatter involving LaMarcus Aldridge lately, but when asked about interest from other teams in an interview with Damon Jones on Nike Basketball's YouTube page, Aldridge said he enjoys playing in Portland, but might listen to overtures from other teams down the road (transcription via Ben Golliver of Blazer's Edge). Aldridge's contract runs through 2015.
- Mike Wells of the Indianapolis Star examines Paul George's journey to the NBA as the third-year forward makes his first All-Star appearance this weekend.
- Mary Schmitt Boyer of the Plain Dealer writes that the Heat will only be able to sign Greg Oden to the veteran's minimum.
- Tyson Chandler tells Jared Zwerling of ESPNNewYork.com that the Knicks sorely miss injured big men Rasheed Wallace and Marcus Camby.
- Ailene Voisin of the Sacramento Bee profiles Kings guard and Seattle native Isaiah Thomas, who is torn on his hopes for the team's ownership situation.
- Heat head coach Erik Spoelstra revisits his Portland roots with Chris Haynes of CSNNW.com.
New York To Host 2015 All-Star Game
The city of New York will host the 2015 NBA All-Star Game, NBA commissioner David Stern and deputy commissioner Adam Silver announced during their Saturday media availability (link via Howard Beck of the New York Times). The Knicks' home arena, Madison Square Garden, has put in a bid to host the weekend, as has the Nets' new Barclays Center in Brooklyn, and Silver said Saturday that one of the two arenas will get it.
The 2014 All-Star game will be hosted by New Orleans. It will be the first All-Star weekend under Silver, who is expected to take over as commissioner after Stern steps down.
Latest On Kings Ownership, Relocation
10:37pm: After NBA commissioner David Stern told reporters that he expects Johnson's group to have a fair shot at retaining the Kings, Johnson tells Sam Amick of USA Today that he is getting closer to assembling his group of prospective buyers and presenting a final bid to the NBA's board of governors.
12:36pm: Ken Berger of CBSSports.com reports that Sacramento mayor Kevin Johnson has participated in a series of meetings in Houston to explore the possibility of keeping the Kings from moving to Seattle. Johnson said he was "encouraged" and called the meetings "positive and productive."
The Kings were sold last month to an ownership group led by hedge fund billionaire Chris Hansen, who is intent on moving the team to Seattle to play in a new arena they have a plan in place to build. However, Johnson and other Sacramento investors are attempting to put together a counteroffer to prevent the team from leaving.
Southwest Notes: White, Asik, Grizzlies
The latest news and notes from around the Southwest Division on Saturday evening:
- David Stern weighed in on Royce White's situation to Jonathan Feigen of the Houston Chronicle saying that the NBA was "quite involved" in the establishment of a mental-health protocol for White and the Rockets.
- Mark Berman of Fox 26 Houston tweets that Rockets owner Leslie Alexander is surprised at Omer Asik's success in Houston.
- In an interview with Chris Vernon on 92.9 FM ESPN in Memphis, Tony Allen shared his thoughts on the Rudy Gay trade as well as a conversation he had with Zach Randolph about retiring in Memphis. Allen will be a free agent this summer (transcript via Grizzly Bear Blues).
- Grizzlies VP of basketball operations John Hollinger discusses the Gay trade with Henry Abbott of ESPN.com, and also shares his thoughts on the trade deadline as a whole.
Stern, Silver Address Media
NBA Commissioner David Stern and Deputy Commissioner Adam Silver addressed the media in a press conference prior to the start of Saturday night's All-Star Weekend events. He discussed a wide range of topics relating to the present and future state of the NBA (transcript courtest of NBA.com Media Central).
Stern on the Kings' future and possible move to Seattle:
I think it's fair to say that we have an application in house, as you know, from Seattle to both transfer ownership to the Hansen‑Ballmer group and an application to move the team to Seattle to play in Key Arena while the process goes on to get permission to build a new building in Seattle, and the various lawsuits and environmental impact and other things are dealt with.
And that's moving along. I met with Mayor McGinn of Seattle, we have two committees focusing on it, the Relocation Committee and Advisory Finance Committee, and we fully expect to have that process completed for report to the Board of Governors at its April 18th meeting.
We have been advised by Mayor Johnson of Sacramento, parenthetically, who we have not met with and who we have no plans to meet with here, closed parens, that Sacramento will be delivering to us a competitive bid to the one that we have received from Seattle. That will include the construction of a new building with a significant subsidy from the City of Sacramento, and other things that would bring the region together to support the team.
That's all we have. The mayor has said that we'll have that likely well before March 1, which appears in our constitution for when we must receive applications to move. It's sort of irrelevant exactly, but that was a good enough date, so we selected that.
Stern on the progress of HGH and other drug testing in the NBA:
I would say that we have a comprehensive drug testing program that has a long list, probably a hundred or so, I'm not even sure the number, of drugs that are prohibited, including HGH, subject to an agreement of the validity of an appropriate testing protocol. And we expect that to happen, we really do, before the start of next season.
With respect to the biological passport, I think the blood test is the precursor to the biological passport. And that's a subject for discussion with the Players' Association.
And let me say, our players have been front and center with us on this one. They want to be and be perceived as playing in a drug‑free sport. We have six unannounced tests a year. Two of those are authorized out of season. And we have an independent group of experts that adds drugs to the list of prescribed drugs. And we test in a way that the samples get sent to an approved lab and we're there.
There will always be some kind of leap‑frogging there, as there was in 1983 which we were the first league to have an anti‑‑drug program and dealt with a variety of things. So it's always subject to be improved. But together with our Players' Association, which I think has taken a leadership role here, I'm sure will continue to improve it.
Stern on the possibility of expansion:
[T]here's a large group of owners who believe that expansion is an economic matter, is a neutral thing. At least the way we've done it to date, you get a lot of money in and in return for that you cut the new team in for a large and growing source of revenue from national TV, national licensing, and all things international and digital. And then it doesn't really seem to make that much additional sense as the increased revenue that demands to the gross PRI and increased each player costs and the like.
So it has to be parsed and analyzed but right now given that we've just come through an intriguing collective bargaining negotiation and coupled it with specific revenue sharing, over $200 million, I think the sentiment is to let it all settle and assess how we are doing and what the projections are for how we'll do.
Stern on the NBPA's leadership controversey:
I don't have any comment on the Players' Association situation other than we know as much as you do and nothing more. We've seen Derrick Fisher's statements, and we await notification from the union as to who we should be dealing with, because it has been a principle of faith for us that we will deal with whomever the union tells us to deal with. That's what we do, and it remains the same.
Stern on the progress of the new Collective Bargaining Agreement:
We think that the Collective Bargaining Agreement is working. We think that it's yet to click in its fullness, which will happen next year. We believe the revenue‑sharing projects together with the Collective Bargaining Agreement that our teams will have the opportunity to both compete and to be profitable.
Stern on the NBA's increasing international profile:
[O]ur international prospects remain as strong as ever. We don't have anything to announce, but we're going to be doing lots of exhibition traveling, I have no doubt, this coming preseason. Our digital footprint will become larger country by country, with respect to the websites that are going to be entering into partnerships and the like. Adam is heading off to China next month. Heidi Ueberroth has me going to India in April. And the march continues as our game continues to prosper and thrive.
Silver on the future of the NBA D-League:
I attended the D‑League Showcase this afternoon. We think it's a wonderful event and I met with the D‑League owners yesterday, as well. I think ultimately we'd like to have a 30‑team league, and we do envision a one‑to‑one relationship between every NBA team and a single D‑League affiliate. We think it's the second best basketball in the world after the NBA.