NBA Taxpaying Teams For 2015/16
With the salary cap set for the new league year, the NBA has finalized its luxury-tax calculations for the 2015/16 season, and the champion Cavaliers will be on the hook for a hefty bill. According to ESPN’s Marc Stein, owner Dan Gilbert and the Cavs, having spent well beyond the luxury-tax threshold last season, owe a tax payment of $54MM.
Here’s the complete list of taxpaying teams for the 2015/16 season, per Stein:
- Cleveland Cavaliers: $54MM
- Los Angeles Clippers: $19.9MM
- Golden State Warriors: $14.8MM
- Oklahoma City Thunder $14.5MM
- Houston Rockets: $4.9MM
- San Antonio Spurs: $4.9MM
- Chicago Bulls: $4.2MM
The tax payments owed by those seven teams total nearly $120MM, and according to Stein, half of that money will be used to fund the NBA’s revenue-sharing program. The other half will be split up equally among the league’s 23 non-taxpaying teams, with each franchise receiving about $2.5MM.
On the other end of the spectrum, the Trail Blazers and Magic were the only teams to fall short of the $63MM floor, per Eric Pincus of Basketball Insiders (Twitter link). They’ll have to make up the difference by cutting checks to the players who finished the season on their respective rosters.
Latest On Jamal Crawford
12:44am: In addition to the teams mentioned below, the Sixers have also been in touch with Crawford, tweets Arash Markazi of ESPN.com. However, according to Markazi, despite the fact that Crawford was reportedly “disappointed” with the Clippers’ initial offer, the team remains optimistic that it can re-sign him.
11:47pm: There’s also mutual interest between the Cavaliers and Crawford, though it remains to be seen whether Cleveland has the spending flexibility to make it work, reports Sam Amico of Amico Hoops (via Twitter). The Cavs would likely have to make a mid-level offer to Crawford.
11:41pm: The Clippers agreed to new deals with two of their free agents on Saturday, but even though Austin Rivers and Wesley Johnson will be returning, it appears Los Angeles might not be bringing the whole gang back together. The Clippers have made a contract offer to Jamal Crawford, but the veteran guard was disappointed with that offer, according to Mike Mazzeo of ESPN.com (via Twitter).
Although Crawford is hardly a goner yet, he has drawn interest from several other teams around the NBA. According to Dan Woike of The Orange County Register (via Twitter), there’s mutual interest between Crawford and the Warriors, who are waiting to see whether or not they have a shot to land Kevin Durant. Conversely, as today’s free agent agreements signaled, the Clippers have been told that Durant won’t be joining them, per Ben Bolch and Brad Turner of The Los Angeles Times.
Meanwhile, the Nets have strong interest in Crawford, Mazzeo reports (Twitter link). Brooklyn is keeping a close eye on the shooting guard market, and is mulling the possibility of making a run at Allen Crabbe or Dion Waiters, as Brian Lewis of The New York Post tweets. Unlike Crawford, both Crabbe and Waiters are restricted free agents, meaning their current teams – the Blazers and Thunder – could match an offer sheet.
The Knicks, Mavericks, Magic, and Heat have also been mentioned as possible Crawford suitors this week, though at least a couple of those teams have gone in another direction at the shooting guard spot.
Cavs, Tyronn Lue Discussing New Deal
- The Cavaliers and head coach Tyronn Lue have begun discussing a contract extension, per Chris Haynes and Joe Vardon of Cleveland.com. As the duo explains, Lue didn’t sign a new deal when he was promoted from his assistant role to replace David Blatt this year, and the gamble paid off. Lue will be in line for a much bigger raise now that he has a championship under his belt than he would have been if he’d signed a new contract earlier this year.
RFA Rumors: Dellavedova, Waiters, T. Johnson
Earlier tonight, we heard that the Warriors plan to retain restricted free agent Harrison Barnes if they’re unable to land Kevin Durant. Here are several more updates on RFAs around the league:
- The Kings, Hawks, Mavericks, and Bucks have all reached out to Matthew Dellavedova‘s camp early in free agency, league sources tell Chris Haynes of Cleveland.com. Dellavedova is in Australia preparing for the 2016 Olympics, so he’s unlikely to have face-to-face meetings with any suitors anytime soon, but it sounds like he’s interested in exploring his options. A return to the Cavaliers remains in play for the RFA guard, but it’s possible the price will get too high for Cleveland’s liking, Haynes writes.
- Dion Waiters‘ representatives fielded interest from the Kings, Nets, Sixers, Bulls, Heat, and Thunder tonight, a source tells Dave McMenamin of ESPN.com (Twitter link). Oklahoma City extended a qualifying offer to Waiters earlier this week, making him a restricted free agent and giving the Thunder the right of first refusal.
- On The Vertical’s free agency broadcast earlier tonight, Adrian Wojnarowski reported that Tyler Johnson has received interest from a handful of teams, including the Nets and Pelicans, and is expected to begin taking meetings on Friday (Twitter links via Scott Kushner of The Advocate and Barry Jackson of The Miami Herald. The restricted free agent guard, who got a qualifying offer from the Heat, could earn up to $10MM annually, per Wojnarowski (Twitter link via Brian Lewis of the New York Post).
Mozgov Seeking Multiyear Deal
- Cavs unrestricted free agent center Timofey Mozgov has no desire to ink a one-year deal this offseason, preferring the security and stability of a long-term pact, Tim Bontemps of The Washington Post relays.
Cavs Have Decisions On Six Free Agents
- The NBA’s “over 36 rule” is behind LeBron James‘ decision to decline his player option, explains Jeff Zillgitt of USA Today. James would be subject to that rule if he signs a two-year deal just as he did last summer with the intention of opting out after one season. For players who have turned 36, their final annual salary in a four- or five-year contract is counted proportionally against the team’s cap each season. The rule was adopted to discourage teams from giving long-term contracts to players who are unlikely to be in the league for the entirety of them. The rule prohibits James from accepting a five-year, $200MM contract from the Cavaliers after this offseason because the pro-rated part would put him above the maximum salary. However, Zillgitt points out that the rule could be amended if the players or the league opts out of the current collective bargaining agreement in December.
- The Cavaliers aren’t concerned about losing their stars, but they have decisions to make on six free agents, writes Dave McMenamin of ESPN.com. Cleveland will have to determine how many years it wants to commit to J.R. Smith and whether it wants to outbid competitors to keep Matthew Dellavedova. Also, Richard Jefferson and James Jones have to decide if they want to play another season at the veterans minimum.
Cavs Tender Qualifying Offer To Dellavedova
- The Cavaliers tendered point guard Matthew Dellavedova a qualifying offer worth $1,434,095, making him a restricted free agent, Eric Pincus of Basketball Insiders tweets.
Cavs Face Competition For Timofey Mozgov
- The Rockets, Heat, Warriors, and Spurs are among the teams with interest in Timofey Mozgov, joining the Cavaliers and Knicks, tweets Dave McMenamin of ESPN.com. Jeff Zillgitt of USA Today Sports adds (via Twitter) that the Lakers also could be in play for Mozgov, depending on how free agency plays out.
LeBron James To Decline Player Option
Although LeBron James has indicated he’ll return to the Cavaliers for the 2016/17 season, he won’t do so on his current contract. Agent Rich Paul tells Chris Haynes of Cleveland.com that his client will decline his player option and sign a new deal.
James’ decision doesn’t come as a real surprise, since opting out and re-upping with the Cavs ensures that he’ll get a larger raise than he otherwise would have. LeBron’s player option for 2016/17 was worth just over $24MM. Depending on what type of deal he signs, the reigning Finals MVP figures to earn a salary closer to $30MM on a new contract.
According to Haynes, Paul says no decision has been made on what type of contract James will sign, and there’s no timetable for when that new deal will be made official. The situation is a little complicated, since Cleveland only holds Early Bird rights on LeBron. An Early Bird deal would allow for a 30% raise on his 2015/16 salary, but the contract would have to be for at least two years, with no options. A Non-Bird agreement would allow him to opt out again in 2017, but would mean accepting a more modest raise.
With the salary cap set to rise again in 2017/18, and James earning Bird Rights with the Cavaliers at that point, it makes sense for him to wait one more year to sign a longer-term contract, since Cleveland doesn’t have the cap room to accommodate a long-term, max contract at this point. No matter what type of contract LeBron signs, he intends to sign it with the Cavs — he and Kyrie Irving and the rest of his Cleveland teammates will look to defend the first title in franchise history.
“I love it here. I love being here. I love my teammates,””James said on the day of the Cavs’ championship parade through downtown Cleveland. “Obviously my agent will take care of all the logistical things but, I’m happy. I’ve got no plans to go nowhere at this point.”
Cavs To Pick Up Team Option On Jordan McRae
The Cavaliers will exercise their team option for 2016/17 on guard Jordan McRae, league sources tell Chris Haynes of Cleveland.com. The team’s decision, which was due later this week, will ensure McRae remains on the roster for now, but doesn’t necessarily guarantee him a roster spot for the regular season. According to Haynes, McRae’s ’16/17 salary isn’t fully guaranteed.
After initially signing McRae to a 10-day contract earlier in the year, the Cavs liked what they saw from the Tennessee product, ultimately inking him to a two-year deal. McRae didn’t see much action for the champs in the regular season or the playoffs — he briefly appeared in garbage time in two postseason games, and averaged 7.5 minutes in 15 regular-season contests.
Still, one of those in which McRae appeared was the regular-season finale, when the Cavs rested their regulars and gave their bench players an opportunity to start. McRae went off for 36 points in that game, easily a new career high.
Unlike most teams around the NBA, Cleveland doesn’t expect to have or use any room under the cap this summer. As such, turning down McRae’s option wouldn’t have freed up any cap space to sign a replacement, particularly since it’s only a minimum-salary option, worth about $875K. So it makes sense that the Cavs picked it up.
With McRae’s option set to be exercised, there are only a couple more team option decisions remaining, as our free agent list shows. NBA clubs typically don’t use team options in free agent contracts too often, since non-guaranteed salaries have a similar function, and give teams more flexibility, since they aren’t limited to a June decision deadline.