|Posted on August 15, 2012 at 7:00 AM|
With the Lakers acquiring Howard. The Lakers will have a tax bill of around $30 million next July, and it’s the last season where the tax rate is dollar-for-dollar. Starting in 2013-14 the new “incremental” tax takes over, where being $30 million above the tax line will mean paying a whopping $85 million tax bill. The Lakers will pay just that. Some say the system isn't broken. Some say the Magic made the move, and it's their fault they got crap back for a superstar. Valid point, but teams seem to be falling from any competitive stances. LA is able to do whatever they please. Their franchise brings in the most cash, so paying godly amounts in luxury tax means nothing.
But if your the Cleveland Cavs you can't build a super team like the Lakers. Because you can't. The team would go bankrupt.
So where is the competitive balance that all of us wanted. Why did the NBA go on strike? Well, they didn't go through the lockout for competitive balance. Because if they did, none of this would've happened. The owners wanted to save every penny, and that's the bottom line. So the league will always have the Lakers stealing from other teams, and the league wants the Lakers on top. Why wouldn't they? It brings in money for them, but the integrity of the league means nothing. Teams like the Magic may never compete for championships. Look at the Raptors. That team has never been considered a title contender,and they'll never compete for a title. But that's okay in the NBA's eyes.
All we can hope for is that someone beats them, or we beat them. What a waste of money that would be. If they fall on their pampered LA asses.
The Lakers have earned success
If you love the Thunder or the Pacers or the Spurs, it's easy to wonder how good your team would be if you had the Lakers' many advantages, most importantly that big, lucrative local television market. And there's something to that; the Lakers' foray deep into new-CBA luxury tax is a tribute to their massive local television deal, which will never happen for New Orleans.
But being in New York or L.A. is merely part of the story. The NBA has four teams playing in the best markets imaginable: The Lakers, Clippers, Nets and Knicks.
And yet, clearly being in a big market isn't nearly enough to guarantee success. Those four teams combined over the last two years have a record of 294-298. Yes, they have huge money advantages. However, as the Knicks have proved time and again, thanks to the cap rules, a willingness to spend aggressively does not equal contention. Overspending, meanwhile, locks up roster spots with bad deals and is the only way to really remove yourself from contention for years. (Cheap teams have cap room that can be turned into real stars. The Heat united LeBron James, Dwyane Wade and Chris Bosh by winning the race to have the league's smallest payroll in the summer of 2010.)
Please, first of all. The Nets are now in New York, and they have a team that's ready to challenge in the East. Look at the Clippers, a contender in the West. Those two teams caused that 294-298 record because of the 2010-11 season. With all of these NBA stars wanting the big markets these days. All four teams will compete in the playoffs, or possibly better. Please read ESPN's propaganda.
Bottom line is this. The Lakers bring in big TV deals,and other revenue for the league. So the luxury tax means nothing to them.