Monday, July 15th, 2013 at 9:50 am  |  28 responses

Pat Riley Wants Luxury Tax Breaks for the Miami Heat

Miami Heat president Pat Riley has a great challenge ahead of him — to retain LeBron James, Dwyane Wade and Chris Bosh, and not get killed by the luxury tax bill. Riley says he lobbied the NBA about cutting a little bit of slack to teams like his, who inked deals with superstars prior to the establishment of the new, punitive fiscal rules. Per the Sun-Sentinel: ”‘I hope I don’t get in trouble for saying this,’ Riley said on his Friday conference call, ‘but I was always a proponent of any of the teams that had signed players to contracts that were under the old CBA should have had some consideration with the new CBA as to how the tax was going to be charged to them over the years, until their contracts ran out, that there should have been some consideration for that.’ Instead, Heat owner Micky Arison now not only is facing a $33 million luxury-tax penalty this coming season, but there could be even more dire implications going forward with the massive annual salaries of LeBron James, Dwyane Wade and Chris Bosh. ‘That really did, probably, in the long run, sort of hurt us from that standpoint,’ Riley said of the lack of tax relief for contracts in place before the stiffer luxury-tax rates that kick in this season became reality. Next season will be the third under the CBA adopted following the 2011 lockout. Riley said that tends to be the time in the NBA when changes turn into cold realities. ‘When you change things that have been operating in a certain manner for years,’ he said, ‘then usually two or three years later, you’ll find out what the good was and what the bad was, on both sides of the table, both for the owners and for the players. I think we’re getting to the point where we’re seeing the new CBA, as punitive as the tax ramifications can become, that teams will manage their payrolls I think based on that. And I think, probably, we’re going to be one of those teams, too. There comes economic decisions and basketball decisions, that’s what this is all about right now. I make basketball decisions, but I am more aware now than I’ve ever been because of the new CBA and what that brings to my desk every day.’ When it comes to those basketball decisions, Riley said he believes his veteran core remains reliable and hungry. ‘Yes,’ he said, ‘sometimes at the end of it does get a little bit stale. But I don’t think we’re at that point right now.’”

  • Add a Comment
  • Share
  • RSS

Tags: , , , , , , ,

  • Ben

    On ya bike!

  • Roy Blumenfeld

    The whole reason the new CBA was put in place was to make sure the contracts/talent distribution wasn’t as lopsided as it was under the old CBA! What would be the point of new agreements if things that were no longer allowed could be pushed in anyways as exceptions?

  • https://twitter.com/jasontichenor Mr. Wet

    He’s not trying to push things in after the fact. These huge deals were signed before the new CBA was constructed. That being said, I’m sure they had a general idea of what was going to happen and they were given the amnesty clause in order to fix mistakes they made like this.

  • Roy Blumenfeld

    Asking for “considerations” to violating rules designed to prevent teams from giving multiple large contracts to star players in order to keep his roster intact is undermining the new CBA. He wants the ability to renew his big three to new contracts, get new rotation players, and not pay the steep tax; all because he was doing it before it was against the rules, so he should be able to keep on doing it now.

    Pat’s job is to make basketball decisions based on the current rules, not circumvent them because his roster won’t be able to stay the way it is otherwise.

  • RunNGun

    I second this.


    loooool ok there pat

  • MikeC.

    Old Rat Riley, trying to cheat again. Greaseball never changes.

  • theDankerNuggets

    yo Bosh and Wade it’s time to take a pay cut


    and when was the first time he cheated

  • LP @ThisisEther

    The AMNESTY CLAUSE (which MIA hasn’t used) was made for this, Pat.

    Too much on the books?? amnesty somebody. That is the tax relief for contracts in place before the stiffer luxury-tax rates.

  • https://twitter.com/jasontichenor Mr. Wet

    The article talks about how hard it is going to be for him to do all those things. But to me, the only thing he appears to be quoted on is referencing his current contract that were signed before the new CBA

    “but I was always a proponent of any of the teams that had signed players to contracts that were under the old CBA should have had some consideration with the new CBA as to how the tax was going to be charged to them over the years, until their contracts ran out, that there should have been some consideration for that.’

  • spit hot fiyah

    i read that they could save 15 million in tax payments by amnestying miller. that’s crazy, his cost is the same as the big three players if tax is taken into consideration

  • Kevin Morin

    Pat Riley is the man!

  • eZ

    Trade Bosh for Asik and some expirings or 2nd rnd picks…win-win

  • MikeC.

    1) negotiating part ownership, presidency of Heat while still under contract with New York.
    2) attempting to sign Juwan Howard to a FA contract with incentives that violated the CBA.

    Rat has a history of greasy moves. No surprise that he wants to grease through his most recent greaseball move into a greasy future.


    any facts to verify this info? like a website or two

  • Dev

    I wonder if the league will consider his request

  • Dev

    Or Joel Anthony cus they barely use him and they could save almost the same amount

  • joe blow

    thats what happens when you BUY 2 championships you fucker

  • Basketball_iQ

    Goodbye Dwayne Wade or Chris Bosh,,,, either way,,,, this run is over.

  • Roy Blumenfeld

    He has had two years to make adjustments. I don’t think the rest of the world is weeping with him regarding the massive amount his team spends on contracts. The Heat have assembled a “super team” and if they want to maintain it, they can, but they need to pay as the CBA mandates they do. No breaks.

  • MikeC.

    I’m a 34 year old Knick fan with blood-fued level hate for the Rat. I don’t need to cite sources. I recall all. But since you asked: http://articles.chicagotribune.com/1996-08-14/sports/9608140246_1_pat-riley-illegal-contract-las-vegas

  • MikeC.

    I’m also looking for an article that states that Mickey Arison’s son was a ball boy for the 2008 USA basketball team. With Rat’s history, the whole “Wade, Bron and Bosh set up the big 3 at the Olympics” story gains some traction. The article was on Grantland a couple months ago.

  • ClydeSays

    NO ONE feels bad for you Pat. Pay up or move on…

  • Fun Fan

    If they want to diminish the luxury tax, then do what all teams who want to avoid or reduce luxury tax do… make trades that allow ownership to lower luxury tax. Otherwise, pay up and keep winning championships…

  • LP @ThisisEther

    You called it… Mike miller slayed via The Clause.

  • https://twitter.com/jasontichenor Mr. Wet

    I agree that he doesn’t deserve any breaks. I was just stating that he wasn’t asking for exceptions to continue doing what he’s doing. He was just b****ing that what he did was before this new CBA, and they shoudln’t have punished them for it.

  • Roy Blumenfeld

    They should be “punished” though. The whole point of the new CBA was that the tax has gone up and tightened every year since it has gone into effect. It was designed to force teams to either adjust their rosters or pay up for having too large of a payroll. The current CBA is designed to make it impossible to pay three players as much as Miami does (or four-Meta World Peace/Kobe/Paul Gasol/Steve Nash-as much as the Lakers were until they amnestied World Peace). Teams that insist on doing it will have to pay for it. It’s that simple.