NBA Roundtable

2010 Tax Concerns: Philadelphia

In Free Agency, General NBA, Trade Talk on June 24, 2010 at 1:38 am

Philadelphia 76ers Salaries

Contracts Above $5 Million

  • Elton Brand – $15.96 million
  • Andre Iguodala – $12.35 million
  • Andres Nocioni – $6.85 million
  • Jason Kapono – $6.64 million
  • Lou Williams – $5 million

Elton Brand has three years and $51.2 million left on his contract. Andre Iguodala has four years and $56.5 million on his deal (good contract). Andres Nocioni has a three year contract but the third season is a team option and Noce is unlikely to be kept that summer. Jason Kapono is an expiring contract. Lou Williams has three years and $15.5 million on his contract.

Those five players give us a sub-total of $46.8 million

Rest Of Team’s Salaries

  • Willie Green – $3.98 million
  • Spencer Hawes – $2.97 million
  • Thaddeus Young – $2.9 million
  • Jason Smith – $2.19 million
  • Marreese Speights – $1.77 million
  • Jrue Holiday – $1.63 million
  • Jodie Meeks – $760k

Spencer Hawes, Jason Smith and Thaddeus Young are both entering the final season of their rookie scale contracts. Hawes and Smith are unlikely to be retained while Young will be looking for a pay rise ($6-8 million per annum).

Marreese Speights has two years left on his rookie scale deal while Holiday and Meeks are both entering the second seasons. Willie Green is also an expiring contract.

These seven players create a sub-total of $16.2 million.

Other Costs

  • Draft Pick — Philadelphia owns the #2 pick which comes with a cap hold of $3.84 million.
  • That gives Philadelphia a roster of 13 players.

Which gives us an overall total of $66.84 million.

Luxury Tax Threshold

David Stern recently announced

NBA commissioner David Stern said on Friday that the league is projecting the cap to come in at about $56.1 million. The actual number won’t be determined until early July, before teams can begin officially signing players.

Though that figure would still be lower than this season’s $57.7 million cap, it’s far better than estimates from last summer, when the league sent a memo to teams warning them of a potential sharp drop to between $50.4 million to $53.6 million.

The luxury tax threshold for a $56.1 million cap is $68 million.

Sixers vs Luxury Tax Line

Philadelphia is below the luxury tax threshold by $1.12 million.

Summer Options

Minimum Contract Signings

Rotation players

  • Philadelphia has two guards in Jrue Holiday and Lou Williams
  • Two wing players (Iggy, Turner) and two combo-forwards (Nocioni, Young)
  • Three big men (Hawes, Brand, Speights)

The Sixers also have some deep reserves with Smith, Kapono, Green and a low level reserve in Jodie Meeks.

The Sixers will sign a third string point guard and possibly another big man. They could use another wing player but they are likely to be satisfied with their current depth there. Those one or two players would add another $850k to $1.7 million. The Sixers can only afford one of the two so they’ll likely go with the third string point guard.

Expiring Contracts = Trade Assets

The expiring contracts of Green, Hawes and Smith combine to make $9.14 million. The Sixers also have Kapono’s $6.64 million which brings the total to $15.78 million (125% of that is $19.73 million).

So the Sixers have a good chunk of expiring contracts to play with.

Elton Brand

The Sixers desperately need to get rid of Elton Brand but they are unlikely to find any possibilities there.

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