NBA Roundtable

Luxury Tax Teams

In General NBA on December 13, 2010 at 7:38 pm

A note via ESPN

LUXURY TAX TEAMS

Team Current Tax Bill
Lakers $24,695,480
Magic $24,019,804
Mavericks $14,867,302
Nuggets $13,552,541
Celtics $7,369,054
Jazz $6,733,605
Blazers $2,650,314
Rockets $2,393,546

A couple of other notes

Based on the eight teams in tax territory, each of the 22 teams currently under the tax line are on course to receive a rebate in July of $3.2 million per team.

Footnote: There are four teams under the tax by less than $2 million: Atlanta ($759,787), San Antonio ($850,591), Milwaukee ($1,256,819) and Philadelphia ($1,864,546).

Footnote II: New Orleans was nearly $700,000 over the tax line before its recent trade with Toronto headlined by Canada-bound Peja Stojakovic and Hornets-bound Jarrett Jack. The Hornets are now nearly $4 million under the tax, with the Raptors at $3.6 million under.

And, the final note, the luxury tax threshold is $70.3 million.

Any Thoughts

  • Dallas, Orlando, LA and Boston will happy to pay their tax bills.
  • If Denver moves Carmelo Anthony, luxury tax savings will be an important incentive for them.
  • The Blazers and Jazz do not need to make a move but they’ll be opportunistic if one arises that doesn’t cause them to lose any key rotation players.
  • The Houston Rockets will look to move below LTT (luxury tax threshold).
    • They have already made one cost saving move by trading Trevor Ariza and Courtney Lee … which has brought them so close to the LTT that they will surely pursue that final move to get them below the tax line.
    • They will want to dump Jared Jeffries and will likely sacrifice a small asset to do it (Chase Budinger?).
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