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Old 07-31-2005, 10:32 AM   #1 (permalink)
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Sixers to be at least $10 million over luxury tax..

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The NBA's new six-year collective-bargaining agreement has been completed and signed, giving team executives, players and agents a chance to look it over before free-agent signings and trades can begin Tuesday.

But for all the figures and terms and legal mumbo-jumbo on the lengthy document, which was finalized early yesterday, there is one number that certainly attracted the attention of the 76ers right away - $61.7 million. That's the threshold for the NBA luxury tax. Any team with a payroll that exceeds that figure must pay a dollar-for-dollar tax on anything above $61.7 million.

And that presents a dilemma for Sixers president and general manager Billy King. The Sixers are well over the threshold figure. By the time all the contracts shake out during this off-season, they could be as much as $10 million over, if not more.

King was not available for comment yesterday.

Seven active players finished last season still under contract to the Sixers. Their deals for this season will force the team to shell out more than $52.8 million. Chris Webber and Allen Iverson, both of whom are among the top five in league salary, will account for more than $35.5 million of that total.

Then there are restricted free-agents Samuel Dalembert, Kyle Korver and Willie Green. All have agreed to new six-year deals and will sign them after the moratorium is lifted at noon Tuesday.

Although official figures aren't known, the three players will make an estimated $13 million combined in the first year of their new contracts, including at least $7 million for Dalembert, who will earn approximately $60 million over the next six seasons.

That swells the payroll to $65.8 million. Still to be decided is whether Michael Bradley, who came to the Sixers last February in the Webber deal, will exercise his option for 2005-06 at $819,550, and how much of the $5 million mid-level exception will be used by King to sign unrestricted free agents.

The mid-level exception is available to the Sixers since the team is over the salary cap, which will be set at $49.5 million for the coming season, an increase of $5.63 million from the previous season.

If Bradley stays and King spends the entire $5 million, that increases the payroll to more than $71 million.

Then there is the matter of signing rookie Louis Williams, the Sixers' second-round pick in the June draft, and undrafted free agents who may make the roster, sending the total inching up to $72 million.

The total does not include $10 million due Jamal Mashburn, who is not expected to play anymore because of a bad right knee. The Sixers can apply for cap relief for Mashburn in February and should get it, since he missed all of last season.

Still, a luxury tax payment of around $10 million isn't a good thing. King does have a tool at his disposal to lower that fee - a provision of the bargaining agreement that gives a team a one-time chance to waive a player under contract and be relieved of luxury tax liability on that contract.

National speculation had Webber falling into that category, but Webber isn't expected to go anywhere, because his departure would leave the Sixers without a key rebounder and starting power forward. A more likely casualty if King utilizes the so-called tax amnesty rule would be veteran guard Aaron McKie, who is slated to earn $6 million this season.
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Old 07-31-2005, 08:34 PM   #2 (permalink)
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Re: Sixers to be at least $10 million over luxury tax..

I'm still for keeping McKie...I understand how injuries have really affected him, but in stretches, I saw flashes of the old McKie last season. Maybe this summer he can rehabilitate himself and still be effective off the bench.
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Old 07-31-2005, 09:02 PM   #3 (permalink)
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Re: Sixers to be at least $10 million over luxury tax..

I've been saying all along that I think King is too loyal to cut McKie, and instead will release Ollie. This has me thinking though, if they're being tight to the point they aren't going to dole out the full MLE, it has me believing that McKie might be sent out. I wouldn't necessarily be against it.

And I don't know if I agree with you saying you saw flashes of the old McKie, unless you mean during the stretches he spent on the bench. I have the NBA Anklebreakers Vol. 2 DVD, and as an extra they have the fourth quarter of Game 4 of the Celtics - Sixers series from the 2002 playoffs, and McKie was great in that quarter (they called it Iverson Vs Pierce, but it was really McKie Vs Pierce), I didn't see anything remotely like that from him last season.

He's still a good defender, but it's just the guy doesn't add as much defensively to make up for his offense.
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Old 08-11-2005, 04:34 PM   #4 (permalink)
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Re: Sixers to be at least $10 million over luxury tax..

What has been quiet is that the move to get rid of Marc Jackson, moved the Sixers out of the area where they were in danger of paying a heavy luxury tax.
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Old 08-11-2005, 04:45 PM   #5 (permalink)
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Re: Sixers to be at least $10 million over luxury tax..

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Originally Posted by PhillyPhanatic
What has been quiet is that the move to get rid of Marc Jackson, moved the Sixers out of the area where they were in danger of paying a heavy luxury tax.
Yeah, I saw this post and had to check the date because with the Jackson contract gone, they should be free from paying the luxury tax. Hunter's new deal is over a mil less per season.
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