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NBA Teams In The Tax For 2018/19

August 15th, 2018 at 4:00pm CST by Luke Adams

After the NBA salary cap increased by nearly 35% for the 2016/17 league year, it has grown at a far more modest rate in two subsequent seasons, increasing from $94.1MM to $99.1MM to $101.9MM. Still, the cap spike in 2016 resulted in a free agent spending spree that is still haunting some teams.

Many of the clubs that currently project to be taxpayers for the 2018/19 season still have an unwieldy contract or two from the summer of 2016 on their books. That list includes Ian Mahinmi for the Wizards, Evan Turner for the Trail Blazers, and Hassan Whiteside and Tyler Johnson for the Heat.

Even this year’s projected taxpayers that spent their money more wisely in 2016 can blame that summer at least in part for their substantial team salaries — clubs like the Warriors and Celtics likely wouldn’t have been able to land stars like Kevin Durant and Al Horford without the cap spike, and commitments to those players are helping push both teams into tax territory today.

In total, nearly one-third of the NBA’s teams could end up over the luxury tax threshold this season. Currently, eight teams have crossed that $123.733MM line, while two more are narrowly below it. Teams have until the end of the 2018/19 regular season to adjust team salary in an effort to get back under the tax line, but most of those clubs will have little leverage if they try to dump salary, so it won’t be easy to cut costs.

Here’s an early look at the teams likely to finish 2018/19 as taxpayers:

Oklahoma City Thunder
Current guaranteed team salary (approximate): $149.58MM

The Thunder have actually reduced their projected tax bill in the last month by trading Carmelo Anthony and his $28MM salary, but this roster will still have a massive price tag attached to it. Because they’ll finish the season having been in the tax in three of the last four years, the Thunder will be subject to the repeater tax, resulting in more punitive penalties. As a result, their tax bill currently projects to be worth a staggering $93.19MM.

Golden State Warriors
Current guaranteed team salary (approximate): $143.64MM

The Warriors will actually get off relatively easy this year, despite a projected tax bill of $51MM+ if Patrick McCaw returns on his qualifying offer. Klay Thompson and Draymond Green are still on old contracts that pay them well below their current maximum salaries, and Golden State won’t get hit with the repeater tax until 2019/20. If Thompson and Durant sign lucrative new deals next summer, the Dubs may well face more significant tax penalties in future seasons.

Toronto Raptors
Current guaranteed team salary (approximate): $139.79MM

The Raptors have avoided the tax during their recent run of 50-win seasons, but they’re unlikely to do so again this year. Even if they’re able to dump one unwanted contract, it probably won’t be enough to slip below the tax line. That’s not the end of the world though, as team ownership should be willing to pay a little extra in 2018/19 for what could be a championship-caliber roster. Some money will come off the books in 2019, and much more will be cleared by 2020, so the club likely won’t have to worry about spending the next several years in tax territory.

Washington Wizards
Current guaranteed team salary (approximate): $134.86MM

One of four taxpayers last season, the Wizards came away with little to show for the extra investment in their roster — the club finished eighth in the East and was eliminated in the first round of the playoffs. That didn’t dissuade ownership from spending big again this season on a roster that looks pretty similar to last year’s, plus Dwight Howard. Based on their current team salary, the Wizards are on the hook for a projected tax bill of $19MM+.

Houston Rockets
Current guaranteed team salary (approximate): $133.72MM

The Rockets‘ guaranteed team salary currently only accounts for 11 fully guaranteed contracts and one partially guaranteed deal, so that total figures to increase by the time Houston sets its final 14- or 15-man roster. With expensive multiyear deals for James Harden, Chris Paul, Clint Capela and others on the books for 2019/20 as well, it will be interesting to see just how willing new owner Tilman Fertitta is to remain in tax territory for multiple years if the Rockets once again fall short of the NBA Finals in 2018/19.

Portland Trail Blazers
Current guaranteed team salary (approximate): $131.64MM

The Trail Blazers deftly ducked below the tax line at the 2018 trade deadline when they shipped Noah Vonleh‘s expiring contract to Chicago. Barring a fire sale, it will be more difficult to get below that threshold this season — the Blazers would have to shed about $8MM to do so, and there are no big expiring contracts on their books that would make good trade chips.

Miami Heat
Current guaranteed team salary (approximate): $126.98MM

Like the Rockets, the Heat don’t have a full roster yet, so their total guaranteed team salary is based on just 12 players. If they bring back Dwyane Wade and Udonis Haslem, even on minimum salary contracts, the gap between the Heat’s team salary and the tax line will increase. That will make it trickier to get out of the tax at the trade deadline, though Miami has reportedly explored potential trades this offseason involving some of the team’s highest-paid players.

Boston Celtics
Current guaranteed team salary (approximate): $126.75MM

The Celtics‘ tax bill is currently only projected to be about $5.8MM, which is modest enough that the club won’t do anything drastic to move below the tax line. Still, the front office will be mindful of the cost of the roster in future seasons. With lucrative new contracts for the likes of Kyrie Irving, Jaylen Brown, and Jayson Tatum due before too long, the Celtics could eventually become a perennial taxpayer, so it might be in the club’s best interests to sneak out of the tax in 2018/19 to avoid starting the clock on the repeater tax.

Outside of the eight teams listed above, the Pistons and Grizzlies will be the wariest about their standing in relation to the tax line in 2018/19. Both clubs currently have about $123.25MM in team salary on their books, leaving them less than $500K away from tax territory. Memphis could create some extra breathing room by waiving Andrew Harrison‘s non-guaranteed salary.

Salary information from Basketball Insiders was used in the creation of this post.

Photo courtesy of USA Today Sports Images.

Heat, Haslem Making Progress In Contract Talks

August 15th, 2018 at 2:46pm CST by Dana Gauruder

It appears that Udonis Haslem will return for at least one more season with the Heat. The 38-year-old power forward is close to an agreement with the team he’s played for the past 15 seasons, Ira Winderman of the South Florida Sun Sentinel reports.

Haslem indicated in June he’d pursue overseas opportunities in order to get more playing time. However, Haslem has remained on the free agent market and was spotted working out with several Miami players this week, Winderman continues.

It’s likely that Haslem will have to settle for a contract at or close to the $2.4MM veteran’s minimum, Winderman adds, though Miami holds his Bird Rights and can offer him significantly more.

Haslem has seen his playing time steadily decline over the last four seasons, making him a de facto unofficial assistant coach. He appeared in 62 games, including 25 starts, during the 2014/15 season. Since then, he’s seen action in 37 games the following season, 16 in 2016/17 and 14 games last season.

If he signs, he’ll join a crowd at the power forward and center positions. Miami already has Justise Winslow, James Johnson, Hassan Whiteside, Bam Adebayo and Kelly Olynyk at those spots along with two-way players Duncan Robinson and Yante Maten.

Wade Would Be In Rotation If He's Back

August 15th, 2018 at 12:25pm CST by Dana Gauruder

If Dwyane Wade returns to the Heat, he’ll be part of the rotation, according to Ira Winderman of the South Florida Sun Sentinel. Adding Wade to the backcourt would create a logjam that would likely cut dramatically into Tyler Johnson‘s minutes, Winderman adds. Wade has indicated if he plays next season, it will be with the Heat.

Heat Sign Forward Marcus Lee

August 15th, 2018 at 11:08am CST by Dana Gauruder

The Heat have signed undrafted forward Marcus Lee, according to a team press release.

The terms of the contract were not released but it’s likely to be an Exhibit 10 deal, which would allow Miami to designate Lee as an affiliate player in order to retain his G League rights if he’s waived during training camp.

The 6’9′ Lee played one season at Cal, averaging 11.4 PPG, 7.2 RPG, 1.6 BPG and 1.3 APG in 27.8 MPG while shooting 56.3% from the field as a senior. He began his college career at Kentucky.

Lee was a member of the Cavaliers’ summer league squad, averaging 6.1 PPG, 4.7 RPG and 1.6 blocks in 15.9 MPG while appearing in seven games.

Heat Notes: Trade Rumors, Walton, Haslem, Free Agents

August 12th, 2018 at 11:21am CST by Arthur Hill

Don’t be surprised if the Heat keep their current roster together for a while despite a flurry of trade rumors surrounding the team, Ira Winderman of The Sun-Sentinel writes in a mailbag column. Numerous Miami players have been mentioned in possible deals, with Hassan Whiteside, Dion Waiters, James Johnson and Tyler Johnson among the most prominent.

Winderman notes that team president Pat Riley indicated in a media session that month that he would like to keep the current core together to see what it can accomplish. A deal could still happen before training camp opens in late September, but Winderman believes it would be more of a surprise, rather than something that has been rumored for weeks.

There’s more today out of Miami:

Derrick Walton may go on to better things with the Bulls, but the Heat didn’t have playing time to offer him, Winderman adds in the same piece. The 23-year-old guard is close to a deal with Chicago after Miami pulled his qualifying offer last month. The Heat have a crowded backcourt with Goran Dragic, Tyler Johnson, Wayne Ellington and Rodney McGruder all established, Waiters returning from ankle surgery and Dwyane Wade possibly wanting to play another season. Walton appeared in 16 games last year as a two-way player.
The Heat are giving up a roster spot by holding onto veteran forward Udonis Haslem if coach Erik Spoelstra refuses to play him, Winderman states in a separate mailbag. Haslem, 38, has developed into a virtual assistant coach, getting into 14 games last season and 16 the year before. Even so, he has a standing offer to return to the team if he wants to keep playing.
The Heat don’t have much playing time to offer combo guards or big men, which is why Mario Chalmers and Jahlil Okafor didn’t consider Miami before signing elsewhere, Winderman writes in another mailbag. Along with the logjam in the backcourt, the Heat have Whiteside, Kelly Olynyk and Bam Adebayo all competing f0r playing time in the middle. Winderman speculates that the team could look for help at small forward if either Wade or Haslem doesn’t return.

‘Heat Only’ For Dwyane Wade

August 11th, 2018 at 7:53pm CST by Arthur Hill

Forget about any possibility of Dwyane Wade continuing his career in China next season, tweets Manny Navarro of The Miami Herald. Wade still hasn’t made a final decision on whether to keep playing, but if he does it will be in Miami.

“Heat only,” Wade said today in an appearance at the Jr. NBA World Championships in Orlando. “If I play the game of basketball this year it will be in a Miami uniform. If I don’t I’ll be living in Miami or somewhere else probably.”

Wade reportedly received a three-year, $25MM offer last month to join the Zhejiang Golden Bulls of the Chinese Basketball Association. He’s a well-known figure in China and visited the nation in July for the announcement of a lifetime contract with Li-Ning, a Chinese apparel company.

Wade’s insistence to play in Miami is consistent with his reaction when the Cavaliers traded him to the Heat in February. After spending his first 13 NBA seasons in South Florida, Wade left in 2016 over a salary dispute, but never seemed comfortable in Chicago or Cleveland. He averaged 12.0 PPG in 21 contests after returning to Miami last season and helped the Heat reach the playoffs.

There are rumors that Wade wants at least some of the team’s $5.34MM taxpayer mid-level exception before he’ll agree to re-sign. The Heat are already in luxury-tax territory and would prefer to have Wade return on a veteran’s minimum deal that would pay him $2.4MM.

Wade also told reporters he doesn’t see any urgency to make a decision soon, although team president Pat Riley recently said he expects to a decision by mid-August.

The Heat have 13 players under contract, in addition to a pair of two-way players, with two spots being kept open for Wade and Udonis Haslem, who also hasn’t decided whether to continue his NBA career. Miami already has a crowded backcourt, notes Ira Winderman of The Sun-Sentinel, with Goran Dragic, Tyler Johnson, Wayne Ellington and Rodney McGruder already in place and Dion Waiters returning from ankle surgery.

“As much as I would love to be back, you got so many different things that you look at, that I have to look at,” Wade said. “My teammates have been great. The young guys, you want to be there for them, but, also, you want to play. So it’s a lot of different things that come into play there. But, ultimately, no matter what happens, I’m a Lifer, Miami Heat for life.”

Heat Notes: Richardson, Newman, Okafor, Babbitt

August 8th, 2018 at 7:30pm CST by Arthur Hill

The Heat had calls from teams wanting to trade for Josh Richardson this summer, but Miami isn’t looking to move him, according to Manny Navarro and Barry Jackson of The Miami Herald. The organization wants Richardson to take a larger role on offense, with team president Pat Riley telling him that he should be able to average 18 points per game.

Richardson put up a career-best 12.9 PPG last season while shooting .375% from 3-point range. The authors say Richardson has been concentrating on shooting off the dribble and creating his own shot during offseason workouts.

Teams may have been trying to take advantage of the Heat’s desire to shed salary, but Richardson has an affordable deal that will pay him nearly $42MM over the next four seasons, including an $11.6MM player option in 2021/22. If he is able to increase his scoring numbers, Richardson’s contract might look like a bargain.

Navarro and Jackson pass along some more Heat info in the same piece:

Miami wasn’t swayed by Malik Newman‘s experience with the Lakers when the team opted to sign him this week. The 21-year-old guard inked a two-way contract with L.A. at the beginning of July, but spent less than three weeks with the team before being waived. A source said the Heat were “intrigued” with Newman because of his outside shooting prowess and his performance with Kansas in the NCAA Tournament. At 6’3″, Newman will have to learn to play point guard to succeed in the NBA, the source added. His contract is believed to be a training camp deal.
Even though the Heat have roster openings, they never considered trying to sign free agent center Jahlil Okafor. The No. 3 pick in the 2015 draft agreed to a partially guaranteed deal with the Pelicans today after disappointing performances with the Sixers and Nets. Miami only has 12 players with guaranteed contracts, along with a two-way deal for Duncan Robinson, but the team believes it has enough centers with Kelly Olynyk and Bam Adebayo backing up Hassan Whiteside.
Veteran forward Luke Babbitt, who finished last season in Miami after a February trade from the Hawks, continues to examine offers in Europe. Babbitt, 29, is hoping to find a place where he can get more playing time after barely being used by the Heat. He appeared in 13 games after the deal, averaging 11.2 minutes per night, and played just three total minutes in the postseason.

Heat Had Interest In Trevor Booker Before He Signed With Shanxi

August 8th, 2018 at 3:09pm CST by Luke Adams

Alex Kennedy passes along a follow-up note on Trevor Booker‘s deal with China’s Shanxi Brave Dragons, tweeting that Booker received interest from the Cavaliers, Heat, and Timberwolves, and also turned down an offer from Israeli club Maccabi Tel Aviv before signing with Shanxi.

Trade Rumors: Rockets, Bazemore, Hawks, Heat, Bucks

August 8th, 2018 at 10:56am CST by Luke Adams

The Rockets reportedly remain in the market for at least one more wing player, even after reaching a deal with Carmelo Anthony, but Sam Amick of USA Today (Twitter link) hears that the team isn’t actively pursuing Hawks swingman Kent Bazemore.

According to Amick, Bazemore isn’t a major part of the Rockets’ discussions at this point. Amick suggests (via Twitter) that the Houston front office would have more interest in sending Ryan Anderson to the Heat in a deal that brings back a player like James Johnson or Tyler Johnson.

Of course, any Rockets offer would need to include additional compensation, such as a draft pick and/or a young player, to entice the Heat. Even then, it’s not clear if Miami would be interested in such a trade.

One team with apparent interest in dealing with the Rockets is Atlanta, according to Kelly Iko of RocketsWire (Twitter link). While Houston’s interest in Bazemore seems limited, Iko reports that the Hawks would be open to a trade if they could get a draft pick and a young player such as De’Anthony Melton in addition to Anderson. That asking price may be one reason why the Rockets’ interest in a Bazemore trade appears to have dissipated.

According to Iko (via Twitter), the Bucks have also contacted the Hawks about the possibility of acquiring Bazemore. New Milwaukee head coach Mike Budenholzer was in Atlanta with Bazemore, and Iko indicates the young wing would be open to reuniting with his former coach on a contender. Initial trade discussions between the Bucks and Hawks didn’t get far though, Iko notes.

Malik Newman Signs Contract With Heat

August 6th, 2018 at 5:07pm CST by Dana Gauruder

AUGUST 6: The signing is official, the team tweets.

AUGUST 3: Guard Malik Newman has agreed to a contact with the Heat, Michael Scotto of The Athletic tweets.

Newman, 21, signed a two-way contract with the Lakers at the beginning of last month but was waived on July 19th. He played in five summer league games for Los Angeles and averaged 3.2 PPG in 9.8 MPG. The contract is believed to be a training-camp deal, though the Heat have openings on their roster.

The 6’3” guard spent one season at the University of Kansas, posting averages of 14.2 PPG, 5.0 RPG and 2.1 APG while shooting 41.5% from long range. He went undrafted in June.