Los Angeles Lakers to face serious tax implications if they keep their core together beyond the upcoming NBA season – NBA News
The Los Angeles Lakers better make this one work and got and grab an NBA championship in the coming season, their first one together, because the Lakers top management and front office need a very compelling reason to keep this
superstar roster together beyond next year.
The Lakers traded for Steve Nash and Dwight Howard this offseason, making them one of the most talked about franchises in recent history, as well as immediate favourites to win the NBA title next season. But it did not come easy
and it certainly did not come cheap.
The Lakers are locked in for a player’s salary figure of $99.2 million, the highest in the league and well above the $70.3 million tax level. This means they have pay a dollar for dollar tax on the extra amount, taking their total
cost of players salary to a whopping $128 million. That is a lot of money to spend on a team, especially if it is not winning a championship at the end of the day.
However, it gets more interesting from here on. As part of the new CBA that was signed last year, the tax burden will get significantly higher for teams that are over the luxury tax threshold. From next year onwards, any team above
the tax threshold will pay $1.5 to a dollar for the first $4.99 million, $1.75 to $1 for the next $4.99 million, a $2.5 ratio for the next $4.99 million and so on. The Lakers already have $79.6 million committed to eight players for the 2013-2014 season.
If they re-sign Howard next summer, he is expected to earn $20.5 million the first year. That will take their player salary for the 2013-2014 season to over $100 million. If that is the case, the Lakers could very well be paying
around $200 million in salary after the application of taxes in the 2013-2014 season, which is an astounding figure.
That being said, Lakers owner Jerry Buss has never shied away from spending money to keep the team in a position where they could win championships and dominate the league.
“My feeling is that we'll continue to pursue the top players in the league. There will always be an emphasis on having the franchise be able to survive and prosper,” said Lakers General Manager Mitch Kupchak.
With all the money being spent, the Lakers will be under tremendous pressure to win the NBA championship next season. If nothing else, it will give the Lakers ownership and front office some respite and a reason to spend another
$200 million in team salaries for the 2013-2014 NBA season and keep the core of the team intact. This could be a very important season for the Lakers.
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