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Luxury Tax Math

The NBA announced the 2010-2011 salary cap will be $58,044,000, which moves the luxury tax threshold up to $70,307,000. Both numbers are higher than last season, and both are higher than projections throughout the season. What does this mean for the Sixers? Math after the jump.
Here are the Sixers' salaries:

  • Brand - $15,959,100
  • Iguodala - $12,345,250
  • Nocioni - $6,850,000
  • Kapono - $6,641,440
  • Lou - $5,000,000
  • Willie Green - $3,976,000
  • Hawes - $2,974,320
  • Thad - $2,901,241
  • Jason Smith - $2,187,913
  • Speights - $1,773,960
  • Holiday - $1,627,920
  • Meeks - $762,195
  • Evan Turner (assumed) - $3,835,600
  • Total - $66,834,939

I'm not 100% sure of the figure for Evan Turner, it's possible that he could sign for as much as $767K more or less than that figure. So the range for the Sixers right now would be somewhere between $66,067,819 and $67,602,059. Or, to put it in more meaningful perspective, they could have anywhere from $4,239,181 to $2,704,941 in wiggle room under the luxury tax.

Either way, I think they can probably afford to add someone with their bi-annual exception. If they're on the high end, they could afford to make a decent offer to a free agent, for about half the MLE.

The ironic thing, however, is that most likely, the Sixers didn't need to make the Dalembert trade to get under the luxury tax threshold. That trade saved them $3,088,503, so even under a worst-case scenario, they would've been a bit more than $300,000 over the luxury tax threshold with any number of ways to shed that amount between now and February. That deal just keeps looking better and better. It's always wise to make a move like that before you have all the pertinent information.

(Salary info from StoryTellers).
by Brian on Jul 8 2010
Tags: Basketball | Luxury Tax | Offseason | Salary Cap | Sixers |