View Full Version : When Should NBA Owners not worry about paying the Luxury Tax?

07-02-2009, 03:18 PM
This seems to be a big issue now with teams not giving players the funds they would like to have. For instance, it looks like Ariza wants more money, but at this moment LA doesn't seem to want to give him that. Odom is said to want 10 million a year, and I'm not sure if he will get it. Last year Posey wanted more money and Boston refused to give him what he wanted and he left. Seems like teams that once they get a title don't do all they can to keep key role players. Maybe they feel it is not worth to pay the extra 10 million to these extra guys when they know they still are legit contenders.

It seems that no NBA Owner wants to pay the luxury tax, but with the way player salaries are today you have nonstars making at least $10 million a year, at what point should an Owner not worry about it?

For instance,
If a team is only a first round team, should the Owner not care about the luxury tax, or should he be willing only to pay the luxury tax for a team that gets to at least the Conference Finals yearly?
Or should it be based on if a team is a legit contender or not?

At what point should this not matter?

Like what teams should not worry about this at all?

The Bulls owner will only pay the luxury tax for a team that is a championship caliber.

07-02-2009, 04:00 PM
almost never(whenever you can project to make a profit on the deal)because the money generated by the star you get will more than pay for the tax+salary,in most cases

07-02-2009, 04:04 PM
I'd say if your team has no legit shot at the title , then you worry about the luxury tax ......

07-02-2009, 04:17 PM
i would say teams like Lakers, Cavs, Orlando are the teams that shouhld not have to worry to much about the cap cuz of their sucsess and their ticket sales and revenue...

teams that should worry are the teams that pay the tax (alot of tax) just to be a first round team or 2nd round team like the Wizards and Mavs.

07-02-2009, 04:25 PM
the nets, regardless of how much of a shot they have at the title, will not and cannot pay the luxury tax. it is far beyond their spending powers.

07-02-2009, 04:35 PM
There's really no reason any Laker fan should support the practice of letting Ariza and/or Odom go because LA doesn't want to go deep into the luxury tax. Jerry Buss has made well over a billion dollars from the Lakers alone and LA would still be likely to make money next year even if they signed Ariza and Odom to 20 million in combined salary (40 million since they'd be over the luxury tax threshold).

07-02-2009, 05:00 PM
it's about the margins. as you get older, you get greedier. as you get richer, you get greedier. and that is how a madoff is born.

07-03-2009, 01:01 PM
it's about the margins. as you get older, you get greedier. as you get richer, you get greedier. and that is how a madoff is born.


07-03-2009, 01:10 PM
I'm not a fan of overpaying for role players. Ariza's a great role player but he's the 5th best player on that team. But in general, if you're a big market team with certified star power and will at least make the conference finals, then go for it. If you're either a medium or large market, and you have the chance to upgrade your roster to become a contender, do it. If you're in a small market with no fan support, or a medium or small market with little chance of making the Finals, then you don't ever exceed the tax. Ever.