NBA Roundtable

Raptors vs 2010/11 Luxury Tax

In Free Agency, General NBA, Trade Talk on July 22, 2009 at 9:36 am

The main issue with the Raptors remaining summer spending isn’t this year’s luxury tax threshold, but the 2010/11 mark. That is due to three main issues (1) Bargnani’s extension (2) Pay increases for top earners (3) The likelihood of the luxury tax line falling in a large way.

So, let’s have a quick look at the Raptors payroll for this coming season and the 2010/11 season … and try to figure out just how close the Raptors are to the luxury tax in both seasons, and how much they can spend

2009/10

The Raptors salaries

  • Chris Bosh – $15.78 million
  • Hedo Turkoglu ~ $9 million (ball park figure)
  • Jose Calderon – $8.22 million
  • Andrea Bargnani – $6.53 million
  • Reggie Evans – $4.96 million
  • Marcus Banks – $4.55 million
  • Jarrett Jack ~ $4.5 million (ball park figure)
  • Demar DeRozan – $2.28 million
  • Roko Ukic – $1.45 million
  • Devean George – $1.6 million
  • Antoine Wright -$1.8 million
  • Quincy Douby – $855k
  • Patrick O’Bryant – $855k

That is a total of $62.4 million. That would leave the Raptors with $7.5 million of cap room below the luxury tax threshold.

Bryan Colangelo has recently said that the Raptors have $7.1 million left to spend – so my figures are off by $400k somewhere — before the Raptors hit the luxury tax threshold.

Raptors Possible Summer Spending

In his arsenal, Colangelo has:

  • MLE ~~ roughly $1.3-1.4 million left after signing Jarrett Jack
  • LLE — $1.9 million
  • Bird Rights — Carlos Delfino

If Colangelo does sign Delfino and Rasho — two players heavily linked to the Raptors — for $5 million and $2 million respectively, that would end the Raptors spending for the summer.

2010/11

Who is on the books for the 2010/11 season?

  • Chris Bosh ~ $16.57 million to $18 million — 30% of the cap, or 105% of his previous year’s pay, whichever figure is greater
  • Hedo Turkoglu ~ $9.72 million (ball park figure)
  • Jose Calderon – $9 million
  • Andrea Bargnani ~ $8.5 million (ball park figure)
  • Reggie Evans – $5.08 million
  • Marcus Banks – $4.85 million
  • Jarrett Jack – $4.86 million (ball park figure)
  • Roko Ukic – $1.45 million
  • Demar DeRozan – $2.45 million

Let’s use the lowest possible figure for Chris Bosh’s contract, since the luxury tax is only a major concern if the cap falls hard and fast. So with Bosh down for $16.57 million, the Raptors payroll is $62.48 million with only nine players on the books.

Other possible costs

  • 2010 lottery pick — If the Raptors make the playoffs, the pick goes to Miami as part of the Shawn Marion trade. So this is either a lottery pick or no pick at all. If it were a lottery pick, it would likely be in the #10-#14 range and cost somewhere between $1.5 and $2.16 million.
  • Carlos Delfino — Delfino could cost somewhere in between $3.5 and $5 million.
  • Rasho Nesterovic — The second year of the LLE is worth $2.06 million
  • The Raptors would need to carry a minimum of 13 players on their roster next season. So the Raptors are looking at a minimum added cost of $1.9 million (rookie minimum contracts), and up to $3.3 million should they target veterans on minimum contracts.

Okay, so the Raptors cap at a minimum is somewhere between $64.4 million and $65.8 million already.

If they were to sign Delfino to a contract worth $5 million, they’d be up near the $69 million mark. If they added Rasho on top of that, they would be around $70.5 million. If the Raptors only signed Rasho, but not Delfino, they’d be in the $66 million range.

And this is without taking into account a possible lottery pick.

Colangelo’s Figures

I was listening to a Bryan Colangelo interview over on Raptors Republic this morning and he mentioned two possible figures for the luxury tax threshold next season:

  • BRI (basketball related income) falling 2.5% — luxury tax threshold in the $65 million range
  • BRI falls 3.5% — luxury tax threshold in the $63 million range

These are clearly two of the figures on Colangelo’s mind right now.

How Much Can The Raptors Spend?

2009/10

To repeat Colangelo’s words — The Raptors have $7.1 million in cap room beneath the luxury tax threshold — so they can still spend a fair bit of money on the team for next season.

2010/11

The higher of the two figures quoted by Colangelo in the interview was $65 million. The Raptors are right on the doorstep of that figure already, before paying either Rasho or Delfino.

  • Will the Raptors take a chance on the luxury tax projections?
  • Will they risk paying the luxury tax for this team in 2010/11?

If not, it doesn’t look like the Raptors can sign any more multi-year contracts.

So either Colangelo takes a big risk with the luxury tax, or he limits himself to one-year contract offers for Delfino + Rasho and/or anyone else he’s targeting.

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  1. What you are pointing out is one of the sticking points, along with guaranteed $, that are in discussions with Delfino and Nesterovics representatives now per Colangelo.

  2. Interesting discussion; I am sure that BC and the Raps front office are fully aware and have a few other contingency plans as well…. potential trades as we are now point guard rich… someone may find value in Banks or Ukic… there are other options for the open roster spots…. Stephano Mancinelli is intriguing as the word is he is 6’8″ and very athletic and runs and hustles and can play the 3 or 4… history has shown that BC is not shy about makes moves to improve his team….

  3. Your Update is outdated, how often are these Updates being revised?

  4. Hello Richard Spackman,

    What information do you think needs updating? I’m not sure what you’re referring to, but I’d be happy to change anything that is incorrect.

    Advance thanks for any help offered.

  5. Good post, very clear.

    Colangelo has said that he is trying to get Delfino to agree to a 1-year deal. I think that’s smart – less risk for the Raps, plus Delfino might make more money this year that way than he would with any other NBA team.

    It sounds like either Ukic or Douby wil be gone before the season starts, too. The question is, will one just be dumped or will a player come back in return? I’m kind of hoping to keep Rasho and Delfino and also add Ike Diogu with an empty roster spot created by dumping Ukic or Douby. Not sure if that’s possible, though, as Diogu would surely want a multi-year deal and that’s going to be tricky with the luxury tax issue.

    -Vittorio De Zen

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