iHaveNet.com Lakers to Pay NBA's Heftiest Luxury Tax | NBA Basketball News
Movies, Movie Reviews & Movie Trailers | The Movies Review Site

New York, NY

The Los Angeles Lakers has the heftiest bill for luxury-tax payments among six NBA teams for last season's payrolls with $29.26 million.

They top the Miami Heat ($13.35 million), Brooklyn Nets ($12.88 million), New York Knicks ($9.96 million), Chicago Bulls ($3.93 million) and Boston Celtics ($1.18 million).

The six teams must remit their payment by July 24.

Fifty percent of the total tax of $70.57 million paid by the six teams will be used to fund revenue sharing for the 2012-13 season, according to the 2011 labor agreement. The remaining 50 percent will be distributed in equal shares to each non-taxpaying team.

Each non-taxpaying team will thus receive 1/24th of $35.28 million, or $1.47 million per team.

But their salary-cap situation is projected to improve greatly following the defection of free-agent center Dwight Howard to the Houston Rockets and expected release of Metta World Peace.

Waiving World Peace will result in a savings of about $30 million.

The NBA also announced a more punitive scale for breaching salary cap and luxury-tax limits in 2013-14.

The cap is set at $58,679,000, with the luxury tax kicking in above $71,784,000 and will rise incrementally.

The minimum salary level for the upcoming season will be $52,811,000, 90 percent of the regular cap level.

The tax amounts for last season were based on a dollar-for-dollar tax above the per-team threshold of $70.31 million.

Indiana Pacers president Larry Bird said that small market teams like theirs can't afford the tax ramnifications of going over the limits.


More Basketball News ...

More Basketball News ...


Article: Copyright © 2013, AHN - All Rights Reserved. "Lakers to Pay NBA's Heftiest Luxury Tax"