GUESS WHO IS PAYING LUXURY TAX AFTER ALL?
There are other consequences to this trade, however. One is that in making this trade the Mavs have stepped past the tax threshold this year. In so doing, they have affirmed openly their continued willingness to pay luxury tax in exchange for extra talent that may give them that next added edge in the chase for a le. Prior to this swap, the team was positioned to land just below the tax threshold this season, and could have easily remained there. Now - in a move for a player that gives more flexibility but that should end up 3rd on the depth chart at point guard - the Mavs are assured of being taxpayers.
We don’t see any benefit in having a high payroll when the money is being wasted, but the Mavs have now brought their individual contracts down to typical NBA levels. Yet they are showing that as long as the contracts are reasonable, they are still willing to maintain the commitment to obtain the best 15-man roster possible. At a time when other owners are almost unanimously taking bold steps to avoid the tax, Mark Cuban's willingness to go that extra step sets him apart from the crowd. We think he needs to be commended for his commitment to bring a le to Dallas.
Here is the new scorecard on Mavs spending for this season.
TAXABLE PAYROLL 15,101,626 -- Nowitzki
9,296,874 -- Stackhouse
9,625,000 -- Dampier
7,300,000 -- Croshere
6,600,000 -- Terry - his deal was reported as 6 yrs 50M and max raises put that at 6.6M - contract is not signed yet
3,200,000 -- Buckner
3,153,120 -- Harris
1,998,000 -- Diop
1,577,353 -- Howard
1,500,000 -- Mbenga estimated - no numbers reported, this just seems the proper range - contract was signed recently
1,221,240 -- Podkolzin
906,480 -- Ager
2,640.000 -- Anthony Johnson
1,968,750 -- Abdul-Wahad, final year was reportedly 25% guaranteed when waived
66,088,443 TOTAL for 13 players
Tax threshold - 65,420,000
Tax - 668,443
Forfeiture of league revenue - 1,500,000 (estimated)
Based on the analysis above, the team is already contributing over $2.1M to the other owners for the extra talent. The other consequence to this trade is that the Mavs now have two roster spots open. The payroll total will go up even farther before all is said and done.