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Wednesday, July 10th, 2013 at 11:20 am  |  36 responses

Los Angeles Lakers to Pay NBA-High $29 Million in Luxury Taxes


Six NBA teams owe the NBA luxury-tax payments for last season’s payrolls, and according to ESPN, the Los Angeles Lakers have been slapped with the largest bill ($29,259,739) following a disastrous 2012-13 campaign: “The Lakers will be forced to pay nearly $30 million in luxury tax for a team that — thanks to a steady stream of injuries and L.A.’s well-chronicled chemistry problems — barely squeaked into the playoffs and will go down as one of the biggest underachievers in league history. The figures, distributed late Tuesday to the league’s 30 teams, reveal 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) join the Lakers ($29.26 million) in facing tax bills for their 2012-13 payrolls. [...] The NBA also announced its salary cap and luxury-tax threshold for 2013-14, when penalties for broaching it will be much steeper. Next season ushers in a more punitive scale for roster excess than seen during the first two seasons of the NBA’s labor agreement introduced in December 2011. The Nets, for example, are projected at this early juncture to have a tax bill in the $75 million range despite carrying a similar payroll of roughly $100 million to the Lakers of 2012-13. The tax amounts for last season were based on a dollar-for-dollar tax above the per-team threshold of $70.31 million. 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. Sources said that each non-taxpaying team will thus receive 1/24th of $35.28 million, or $1.47 million per team. The six taxpaying teams, sources said, will receive an invoice by Monday and must remit their required payment by July 24. Escrow and tax distributions are scheduled to be made back to teams no later than July 29.”

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  • RunNGun

    That’s chicken feed to them especially when they have that $200M television contract.

  • Caboose

    Like the NBA won’t just give them the maximum number of nationally televised games to make up for it. The L protects their big cities.

  • AiRsMiTh

    L O L. They may have a hefty contract, but I bet the FO will still be a little unhappy about this one.

  • Lloyd

    The televised games are basically chosen by what teams can bring in the biggest ratings no? Don’t see the Lakers being a big commercial draw especially if Kobe isn’t back.

  • Ugh

    The Lakers were a top draw team when Cedric Ceballos was their leader. They’re the Manchester United of basketball – people with no knowledge of the sport still watch their games and always will.

  • Caboose

    I agree, the Lakers have no business being on national TV this year. But the L will still take care of them by giving them the extra TV revenue.

  • Ugh

    Must be the chicken feed that’s causing Mitch and Jim to lay so many eggs in the front office.

  • theDankerNuggets

    that’s what happens when an owner tries to make decisions instead of letting the GM do his job

  • LP @ThisisEther

    $29 Million is a lot of money…regardless of how rich the Lakers are and how much money the franchise brings in per year…its still 29 milly.

  • RunNGun

    Mitch and Jim Buss vs Donald Sterling… this I’ve got to see…

  • bike

    To make up the deficit, the Lakers plan on a documentary titled ‘Rise of the Phoenix’ chronicling Kobe’s meteoric comeback from his devastating injury. There will be extensive footage of Kobe undergoing unimaginable pain in his rehab while sporting a t-shirt that says ‘Fu*k Dwight’.

  • pposse

    from a financial analysts perspective (the la lakers) its still viewed as a loss.

    Its not like the league is going to give the lakers 29 MORE million dollars to make up for their luxury tax penalty. They are just going to give them the same amount of nationally televised games they always get which is a max amount more than likely anyways. The analyst will still come to the conclusion that the lost out on 29 million dollars.

  • Caboose

    Well said.

  • Toner83

    Soundtrack by Tenacious D. It was meant to be man, meant to be.

  • LobCity

    Nationally televised revenues are shared though, right? It’s the local deals where they make their money.

  • Don Juan

    Man, you people love to ride that Kobe D.
    I don’t think this recovery is gonna go as smoothly as y’all MambaD lovers think. Those a Achilles injuries are no jokes.

  • RayJr

    Mitch has to follow what Buss does so its really Buss vs Sterling. But, who would’ve ever thought that Sterling and the Clippers would be making better decisions and moves than the Lakers?

  • RunNGun

    Well, the Lakers have a few championships to show for but the Clippers? Not as long as Sterling owns the team. Besides, who truly was a Clipper fan before Griffin and Paul came on board? They made some pretty horrible moves. LMAO

  • Unforgettable

    It’s actually three billion..

  • Unforgettable

    Brooklyn will also be paying around $70m next season

  • Conor

    The rehabilitation either succeeds or it fails. There are only two ways of going about it and you seem to have taken the cynical contrarion/a$$hole route.

    Bike’s comment was obviously made in jest.

  • Conor

    Would you be saying that now if Stern hadn’t played God & vetoed the CP3 deal?

  • Drig

    200 million per year.

  • bb91103

    The Lakers laugh at $30 million. They make $200 million per season off of TV rights.

  • bb91103

    Billy Crystal.

  • bb91103

    Cost of doing business.

  • bb91103

    I think the owner of the nets made that much last month.

  • bb91103

    If it is a cost of doing business, as an actual financial analyst would say, then why is it is lost? It is an investment. No investment gives you a return 100% of the time. If you can pull that off you would be in Bill Gates neighborhood.

  • bb91103

    The Lakers will get good ratings based on pure population count. Just like the Knicks, Bulls and some of the big media markets. More eye balls.

  • bb91103

    If what you say is correct then what are you complaining about? If the Lakers can get the ratings and revenue is shared then every team gets paid.

  • theDankerNuggets

    maybe not but that’s not really relevant because they put themselves in this position with several terrible moves in the past year that appear to be made by someone with more ego than basketball knowledge

  • bucadonebuvi

    мy coυѕιɴ ιѕ мαĸιɴɢ $51/нoυr oɴlιɴe. υɴeмployed ғor α coυple oғ yeαrѕ αɴd prevιoυѕ yeαr ѕнe ɢoт α $1З619cнecĸ wιтн oɴlιɴe joв ғor α coυple oғ dαyѕ. ѕee мore αт…­ ­ViewMore——————————————&#46qr&#46net/kkEj

    If what you say is correct then
    what are you complaining about? If the Lakers can get the ratings and
    revenue is shared then every team gets paid.

  • Conor

    Jerry Buss elected D’Antoni.

  • Lloyd

    People want to play for the Clippers now just like people wanted to play for the Lakers over their storied franchise. If that CP3 deal wasn’t vetoed, the fortunes would grossly be in favour of the Lakers still.

  • RayJr

    Completely true. The Lakers would have Dwight and CP3 right now and the Clippers would be at the bottom of the barrel in the West. Wow, my have the tables have turned huh?

  • theDankerNuggets

    I think Jerry and Jim were both involved in the decision but that only furthers my point, I don’t think Kupchak or any other GM would would hire D’Antoni over Phil with the roster they had

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