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Recent History Of NBA Taxpaying Teams

April 18th, 2019 at 11:01am CST by Luke Adams

As we detailed last week, five NBA teams finished the 2018/19 season in luxury tax territory, with the Thunder, Warriors, Raptors, Trail Blazers, and Celtics on the hook for an estimated total of $153.5MM in tax payments.

It was the first time since 2016’s salary cap spike that as many as five teams were taxpayers, and the projected league-wide tax payments of $153.5MM appears to be a new high. While two teams – Oklahoma City and Golden State – contributed significantly to that figure, the rising number of clubs in the tax reflects that teams are once again going well over the salary cap, as annual cap increases have slowed in recent years.

Listed below are the NBA’s taxpayers for the last five seasons, based on data from ESPN, Larry Coon’s CBA FAQ, and our own records.

As this list shows, the Thunder, Warriors, and Cavaliers were each taxpayers in three of the last four seasons, making those teams eligible for repeater-tax penalties if they finish in tax territory again in 2019/20. Repeater penalties are more punitive — the tax for every dollar spent above the tax line starts at $2.50 rather than $1.50. As such, those teams figure to do their best to avoid excessive spending next season.

The 2019/20 tax line is expected to be around $132MM, based on the NBA’s latest cap projections, and the Thunder already have nearly $138MM in guaranteed salaries on their books, per Basketball Insiders. The Cavaliers are at about $123MM, but may increase that figure substantially if they trade J.R. Smith‘s non-guaranteed contract for guaranteed salary. As for the Warriors, they’re only at $82MM in guaranteed money, but would be at risk of going well into the tax if they re-sign Kevin Durant and Klay Thompson.

As we prepare to keep an eye on those teams’ spending this offseason, here are the reported luxury tax figures from the last five NBA seasons:

2018/19

Oklahoma City Thunder: $61.6MM
Golden State Warriors: $51.5MM
Toronto Raptors: $21.4MM
Portland Trail Blazers: $15.1MM
Boston Celtics: $3.9MM
Total: $153.5MM
Note: This season’s figures are still subject to change, based on postseason-related contract incentives.

2017/18

Cleveland Cavaliers ($50.7MM)
Golden State Warriors ($32.3MM)
Oklahoma City Thunder ($25.4MM)
Washington Wizards ($7MM)
Total: $115.4MM

2016/17

Cleveland Cavaliers ($24.8MM)
Los Angeles Clippers ($3.6MM)
Total: $28.4MM

2015/16

Cleveland Cavaliers ($54MM)
Los Angeles Clippers ($19.9MM)
Golden State Warriors ($14.8MM)
Oklahoma City Thunder ($14.5MM)
Houston Rockets ($4.9MM)
San Antonio Spurs ($4.9MM)
Chicago Bulls ($4.2MM)
Total: $117.2MM

2014/15

Brooklyn Nets ($20MM)
Cleveland Cavaliers ($7MM)
New York Knicks ($6.9MM)
Los Angeles Clippers ($4.8MM)
Oklahoma City Thunder ($2.8MM)
Total: $41.5MM

Information from Basketball Insiders, Larry Coon’s CBA FAQ, and ESPN’s Bobby Marks was used in the creation of this post.

NBA Teams That Can’t Trade/Acquire Cash Until July

April 17th, 2019 at 12:25pm CST by Luke Adams

During each NBA league year, teams face limits on the amount of cash they can send out and receive in trades. Once they reach those limits, they’re no longer permitted to include cash in a deal until the following league year.

For the 2018/19 NBA season, the limit is $5,243,000. The limits on sending and receiving cash are separate and aren’t dependent on one another, so if a team has sent out $5,243,000 in trades and also received $5,243,000 in separate deals, they don’t have a clean slate — they’ve reached both limits for the season.

Thanks to reporting by cap experts like Bobby Marks, Eric Pincus, and Albert Nahmad, we’ve been able to keep tabs on the cash sent and received in trades by teams during the 2018/19 NBA league year, so we have a pretty clear idea of each club’s flexibility heading into the draft.

Being able to send or receive cash on draft day is particularly useful, since it can provide a simple means of acquiring – or moving – a second-round pick. A year ago, five of the trades agreed upon in June that featured 2018 draft picks included cash.

Of course, three of those five trades weren’t actually completed until July, which highlights a simple way to work around these restrictions. A team that can’t send or receive cash at this year’s draft could still technically agree to a deal involving cash, then officially finalize it sometime after July 1, when the cash limits reset for the 2019/20 league year.

Still, the 2018/19 restrictions are worth noting, since in some cases a player’s changing cap figure or contract status can make it impossible to wait until July to make a trade official.

With that in mind, here are some of the limitations facing teams until July 1:

Ineligible to receive cash:

Charlotte Hornets
Chicago Bulls
Toronto Raptors

The Hornets reached their limit less than a week until the 2018/19 league year, having received $5MM from the Nets in their Dwight Howard trade and $243K from the Thunder in a deal involving Hamidou Diallo.

As for the Bulls, they reached their yearly limit in three separate transactions, acquiring approximately $2.63MM in a pair of swaps with the Rockets involving Michael Carter-Williams and Carmelo Anthony. Chicago then received another $2.61MM from the Thunder in a Timothe Luwawu-Cabarrot salary dump.

Based on the reported figures for the Raptors ($5MM from the Spurs in the Kawhi Leonard blockbuster, plus $110K apiece from the Sixers and Nets in deadline deals), they could technically acquire another $23K. However, $110K is the minimum amount of cash a team can include in a trade this season, so Toronto can’t actually acquire any more.

Outside of these three teams, every NBA club is eligible to acquire at least $2MM before July. The Magic ($2,226,778), Sixers ($2,743,000), Mavericks ($3,148,049), and Hawks ($3,187,090) are most limited.

Ineligible to send cash:

None

No NBA teams have reached their limits for sending out cash this season, though some are close.

The Nets ($243,000) and Spurs ($243,000) can barely trade any cash after sending out $5MM in deals last July. The Thunder ($411,294) and Rockets ($565,513) are also nearly tapped out, having made a handful of moves aimed at reducing – or in Houston’s case, eliminating – their luxury tax bills.

The Wizards ($2,365,456), Grizzlies ($2,660,069), and Celtics ($2,737,090) are also somewhat limited in their ability to trade cash, but no other teams have less than $3MM available.

Hamidou Diallo Undergoes Procedure On Elbow

April 17th, 2019 at 11:03am CST by Luke Adams

Thunder swingman Hamidou Diallo underwent an arthroscopic procedure on his troublesome right elbow today, the team announced in a press release. Diallo had been ruled out of Tuesday’s Game 2 vs. Portland due to right elbow soreness.

According to the club, Diallo is expected to resume basketball-related activities in approximately four weeks. Given that the Thunder have fallen behind 2-0 to the Trail Blazers in their first-round series, there’s certainly no guarantee OKC will still be alive at that point.

Of course, even if the Thunder rebound and make a deep playoff run, it’s possible Diallo has played his last game of the season. The 2018 second-rounder was a regular part of the club’s rotation earlier in the season, but hasn’t played more than five minutes in a game since the All-Star break.

Assuming he gets and healthy and continues to make positive strides, the 20-year-old will likely take on a more prominent role in Oklahoma City’s rotation over the next couple years. Diallo’s team-friendly rookie contract – $1.42MM in 2019/20 with a $1.66MM team option for 2020/21 – should make him a valuable asset for a club that was this season’s top taxpayer and may remain in luxury tax territory going forward.

2019 NBA Draft Order Tiebreaker Results

April 12th, 2019 at 4:06pm CST by Luke Adams

The NBA’s draft order is determined by the league’s reverse standings for that year, with the first four spots in the draft up for grabs via the lottery. However, when two teams finish the season with identical records, an additional step is necessary.

In order to determine which of those tied teams will move ahead of the other(s) in the draft order, the NBA conducts tiebreakers via random drawings. The league completed the random drawings for 2019’s tiebreakers today, and we have the results below. Let’s dive in…

Tiebreaker No. 1:

Teams: Phoenix Suns vs. Cleveland Cavaliers (19-63)
Draft positions: 2-3
Winner: Cavaliers

Tiebreaker No. 2:

Teams: New Orleans Pelicans vs. Dallas Mavericks vs. Memphis Grizzlies (33-49)
Draft positions: 7-9
Winner: Pelicans
Second place: Grizzlies
Note: Grizzlies’ pick will go to Celtics if it falls outside top eight; Mavericks’ pick will go to the Hawks if it falls outside top five.

Tiebreaker No. 3:

Teams: Sacramento Kings vs. Miami Heat vs. Charlotte Hornets (39-43)
Draft positions: 12-14
Winner: Hornets
Second place: Heat
Note: Kings’ pick belongs to Celtics (or Sixers if it’s No. 1).

Tiebreaker No. 4:

Teams: Brooklyn Nets vs. Orlando Magic (42-40)
Draft positions: 16-17
Winner: Magic

Tiebreaker No. 5:

Teams: Los Angeles Clippers vs. San Antonio Spurs vs. Indiana Pacers (48-34)
Draft positions: 18-20
Winner: Pacers
Second place: Spurs
Note: Clippers’ pick belongs to Celtics.

Tiebreaker No. 6:

Teams: Oklahoma City Thunder vs. Boston Celtics (49-33)
Draft positions: 21-22
Winner: Thunder

Tiebreaker No. 7:

Teams: Portland Trail Blazers vs. Houston Rockets (53-29)
Draft positions: 25-26
Winner: Trail Blazers
Note: Rockets’ pick belongs to Cavaliers.

Teams’ lottery odds didn’t really change as a result of today’s tiebreakers. In instances where two or more lottery teams finish with identical records, the lottery combinations are split evenly among them, with the tiebreaker winner getting one extra combination if there’s an odd number.

However, today’s results were still important. As a result of ending up at No. 8, for instance, the Grizzlies now have a 57.4% chance of retaining their own top-eight protected pick, something they don’t really want to do unless it jumps into the top four.

The Celtics, who already have three first-round selections for 2019 and would prefer to roll that Memphis pick over to 2020, will get it if it falls outside of the top eight. There’s only a 42.6% chance that will happen. The Grizzlies’ result was the only good news today for the Celtics, who lost their other three tiebreakers.

The pre-lottery 2019 draft order for the first round is listed below. For more information on the lottery odds for the top 14 teams, be sure to check out our recap from Thursday, as well as our glossary entry on the draft lottery. This year’s lottery will take place on Tuesday, May 14.

New York Knicks
Cleveland Cavaliers
Phoenix Suns
Chicago Bulls
Atlanta Hawks
Washington Wizards
New Orleans Pelicans
Memphis Grizzlies
- Note: The Celtics will receive this pick if it falls out of the top eight (42.6% chance).
Atlanta Hawks (via Dallas Mavericks)
- Note: The Mavericks will keep this pick if it moves up into the top four (26.2% chance).
Minnesota Timberwolves
Los Angeles Lakers
Charlotte Hornets
Miami Heat
Boston Celtics (via Sacramento Kings)
- Note: The Sixers will receive this pick if it moves up to No. 1 (1.0% chance).
Detroit Pistons
Orlando Magic
Brooklyn Nets
Indiana Pacers
San Antonio Spurs
Boston Celtics (via Los Angeles Clippers)
Oklahoma City Thunder
Boston Celtics
Utah Jazz
Philadelphia 76ers
Portland Trail Blazers
Cleveland Cavaliers (via Houston Rockets)
Brooklyn Nets (via Denver Nuggets)
Golden State Warriors
San Antonio Spurs (via Toronto Raptors)
Milwaukee Bucks

Information from Tankathon.com was used in the creation of this post.

Latest On Embiid, Griffin, George Injuries

April 12th, 2019 at 3:36pm CST by Luke Adams

With the 2019 postseason around the corner, three potential All-NBA players are battling nagging injuries that may threaten their availability for the start of their respective playoff series.

Sixers center Joel Embiid, who missed 14 of the team’s final 24 games due to left knee soreness, continues to deal with that issue and was only a partial participant in Friday’s practice. The big man called the situation “extremely frustrating,” and he and GM Elton Brand both indicated that there’s no guarantee Embiid will be able to play in Game 1 vs. the Nets on Saturday. His status will be updated soon.

Pistons power forward Blake Griffin, who was forced out of action for the club’s must-win regular-season finale on Wednesday due to his own left knee injury, is still considered day-to-day, head coach Dwane Casey said on Friday (link via The Associated Press). Like Embiid, Griffin isn’t necessarily a lock to play in Game 1. Detroit opens its first-round series vs. the Bucks on Saturday.

The news is a little more promising for Thunder forward Paul George, who is listed as day-to-day with right shoulder soreness. According to Royce Young of ESPN.com, George said on Friday that he intends to play in Game 1 vs. Portland on Sunday, regardless of his pain level.

“It’s playoff time, so it’s more than this, it’s about being out there with my guys,” George said. “As much as I can get it a hundred as possible, or close to it, you can expect me out there Sunday.”

Five Teams Finish 2018/19 Season In Tax Territory

April 11th, 2019 at 1:48pm CST by Luke Adams

With the exception of bonuses that could still be earned – or missed – in the postseason, 2018/19 NBA team salaries are now frozen for luxury-tax purposes, ESPN’s Bobby Marks observes. That means that five teams will finish the ’18/19 season as taxpayers.

Here are those five teams, along with approximations of their projected luxury tax bills, per Marks:

Oklahoma City Thunder: $61.6MM
Golden State Warriors: $51.5MM
Toronto Raptors: $21.4MM
Portland Trail Blazers: $15.1MM
Boston Celtics: $3.9MM

While the Warriors‘ payroll is actually slightly higher than Oklahoma City’s, the Thunder met the repeater tax criteria, since they also paid the tax in 2015, 2016, and 2018. As a result, they’re subject to more punitive penalties, as we outline in our glossary entry on the luxury tax. The standard penalties for taxpaying teams start at $1.50 per dollar and increase from there; the repeater penalties start at $2.50 per dollar.

Golden State will meet the repeater criteria next season if they’re in the tax again, since they’ll have paid the tax in 2016, 2018, and 2019. Teams qualify as repeat offenders when they’ve finished in the tax in three of the previous four seasons.

The figures listed above are subject to change. For instance, Kyle Lowry has three separate $500K bonuses that he could still receive, depending on how far the Raptors advance in the playoffs. If he earns any of those, they’d be added to Toronto’s payroll and would in turn increase the club’s tax bill.

Since half of the luxury tax penalty money is reallocated to the teams that finished out of the tax, those non-tax clubs are in line for payouts of approximately $3.1MM, per Marks.

The Heat, Wizards, and Rockets made in-season transactions to get out of tax territory and will now receive $3.1MM from the tax pool. Other clubs, such as the Grizzlies, Knicks, Hornets, Cavaliers, Pistons, and Bucks, managed to keep their team salaries just below the $123.73MM tax threshold throughout the league year.

Draft Notes: T. Jones, J. Smith, Dawkins, Tyree

April 8th, 2019 at 2:48pm CST by Luke Adams

Duke guard Tre Jones published an Instagram post this weekend in which he strongly hinted that he’s leaning toward returning to school for at least one more year. Nothing is official yet, but if Jones does elect to stick with the Blue Devils for his sophomore season, it would be big news for the program.

Currently, Jones ranks 29th on Jonathan Givony’s 2019 NBA draft big board at ESPN.com, including fourth among point guards. According to Darren Wolfson of 5 Eyewitness News (via Twitter), the Knicks, Grizzlies, Hornets, Pelicans, Hawks, and Thunder have all done a “great amount” of background work on Jones.

As we wait for official word from the Duke guard, here are a few more draft-related updates:

Maryland freshman forward Jalen Smith, a potential draft candidate, has elected to return to the Terrapins for his sophomore season, the school announced today in a press release. “I’m excited to return to Maryland for my sophomore year and advance my education as I continue to develop both on and off the court with my teammates and coaching staff,” said Smith, who averaged an impressive 17.0 PPG, 10.0 RPG, and 3.0 BPG in two NCAA tournament games.
UCF guard Aubrey Dawkins has submitted the paperwork necessary to declare for the 2019 draft, according to a press release. The 6’6″ junior left a strong final impression, having racked up 32 points against Duke in UCF’s second-round NCAA tournament loss.
Ole Miss junior guard Breein Tyree has announced that he’ll test the draft waters, maintaining his college eligibility during the process (Twitter link). Tyree averaged a team-high 17.9 PPG on .459/.375/.831 shooting in 33 games in 2018/19.

Andre Roberson Unlikely To Return This Season

April 6th, 2019 at 1:59pm CST by marksuleymanov

After a series of setbacks due to injury, and the regular season nearing its conclusion, it seems unlikely the Thunder will get Andre Roberson back this year, Erik Horne of The Oklahoman writes.

Aside from limited stretches in practice, Roberson has not done much physical activity recently. With Oklahoma City preparing for the postseason, the timetable to get the defensive specialist back healthy has all but dwindled.

“I always hate throwing things out there that could potentially clarify something to be, ‘That’s it,’ but he’s not even doing anything in practice,” head coach Billy Donovan said earlier this week. “He is running. I’ve got nothing medically from anybody that says, ‘Hey listen this guy is nearing or approaching being able to play.'”

Roberson, 27, has not played in a game this season as he has attempted to return from knee surgery. He originally ruptured his patella tendon in Jan. 2018 and since then has undergone arthroscopic surgery to alleviate pressure and suffered a pair of setbacks, including a small avulsion fracture in his knee in late November.

While his defensive prowess has been missed, the Thunder clinched a playoff spot behind an MVP-caliber season from Paul George and another statistically dominant year from Russell Westbrook.

Since the Thunder signed Roberson to a three-year, $30MM pact in July 2017, he has appeared in just 39 games.

Thunder Offered Patterson, Second-Rounder For Tolliver At Deadline

April 4th, 2019 at 8:57am CST by Luke Adams

When the Timberwolves faced the Mavericks last night, Anthony Tolliver could have been playing against the Wolves rather than for them, notes Darren Wolfson of 5 Eyewitness News, who tweets that he thinks Minnesota should have accepted Dallas’ trade offer of J.J. Barea and a second-round pick. Wolfson has previously reported that the Thunder and Raptors offered second-round picks attached to Patrick Patterson and C.J. Miles, respectively, for Tolliver, but those deals would’ve taken the Wolves into the tax.

Wizards Notes: GM Search, Wall, Ariza

April 3rd, 2019 at 10:59pm CST by Luke Adams

The Wizards will be vying this spring with the Suns, Pelicans, and possibly the Timberwolves for general manager candidates. And while Washington may not have the promising cap outlook or collection of young players out of those teams, it still may be considered the best opportunity for GM hopefuls, writes Ben Golliver of The Washington Post.

“We really care about two things: Is the boss invested in his team, and will he prove it by spending the money we ask him to spend?” one longtime executive said to Golliver. “(Wizards owner) Ted (Leonsis) is two-for-two. He won the Stanley Cup with the Capitals. He paid John Wall, Bradley Beal, Otto Porter and Ian Mahinmi. He paid Andray Blatche and then paid him to go away. What more could you want?”

Leonsis says there’s no list of candidates yet to replace former president of basketball operations Ernie Grunfeld, but league executives tell Golliver that the search figures to include “past and present top decision-makers, as well as up-and-coming executives.” Besides some of the names already mentioned as candidates, Golliver identifies Thunder vice president Troy Weaver and Jazz assistant GM Justin Zanik as a couple more options for the Wizards.

Here’s more out of D.C.:

Firing Grunfeld was the right move, but the Wizards did it for the wrong reasons, contends Tom Ziller of SBNation.com. In a separate article for The Washington Post, Golliver writes that a number of Grunfeld’s personnel missteps continue to loom large over the franchise.
While head coach Scott Brooks is expected to return for the 2019/20 season, he acknowledges that it could be a difficult year of transition for the Wizards. “It’s going to be a great opportunity for the next general manger to come in and shape the team,” Brooks said, per Lisa Redmond of NBC Sports Washington. “… We have five players and plus a first-round pick coming up and so it’s going to be a very important summer with John (Wall) being out. You know, we have to be very creative. Not going to make an excuse that it’s going to be a tough year, but it’s going to be a challenging year.”
Speaking of Wall, even though his Achilles injury is bad news for the Wizards, there’s a possible silver lining, writes Candace Buckner of The Washington Post. As Buckner outlines, the franchise will only be on the hook for 20% of Wall’s 2019/20 salary until he returns to the court, with insurance picking up the other 80%. Of course, Wall’s full super-max salary (projected to be worth $37.8MM) will still count against the cap.
Wizards forward Trevor Ariza is likely done for the season due to his groin injury, tweets Chase Hughes of NBC Sports Washington. The team has previously expressed interest in retaining Ariza – an unrestricted free agent this summer – beyond this season, but it’s not clear how the front office shakeup will affect the veteran.