With the start of the 2020-21 season imminent, many have called the NBA’shandling of the Coronavirus pandemic a “success.” They were among the first sports leagues to respond, effectively shutting down play mid-way through the campaign, picking up and restarting in quarantine, and now (weeks after the playoffs ended), getting back on track for a new season.
But things are proving to be complicated in the ongoing effort to combat the effects of the COVID-19 crisis. Among other things, the league’s adjusted numbers for the luxury tax and the salary cap are causing quite a bit of stir from executives who claim the policies heavily favor one particular team: the Golden State Warriors.
“Sources also said that, in an attempt to ease the tax burdens of teams that had been planning on the salary cap and luxury tax continuing to steadily rise, the NBA will reduce the luxury tax bill for teams at the end of the 2021 season by the percentage amount that the league’s Basketball Related Income declines from initial projections,” wrote Tim Bontemps and Adrian Wojnarowski of ESPN.
“For example, if it drops from a projected $8.45 billion to $5.9 billion — a 30% decline — the Golden State Warriors’ projected luxury tax bill would be reduced from $60 million to $42 million.
Another way the luxury tax relief could benefit Golden State is with regard to potentially using its $17.2 million trade exception generated by trading away Andre Iguodala last summer. If the Warriors were to acquire a player for that full amount in a trade, their tax bill would increase to $149 million. A reduction to league wide revenue, however, could slice up to $45 million off of that total number.”
This is possibly a significant victory for the Warriors and rival teams are already upset (again). https://t.co/lyNv3EJgGe
— Brian Windhorst (@WindhorstESPN) November 10, 2020
The Warriors, who are trying to return to their Championship ways, have been the talking point of basketball fans for years. Steph Curry, Klay Thompson, Draymond Green, and Kevin Durant formed a powerful superteam that was pretty unprecedented.
Even after Durant’s departure, the Warriors were able to land Andrew Wiggins and the No. 2 overall pick in the upcoming draft.
With their bill having been made a little lighter, the Dubs might find it easier to justify making a trade for another high-priced, high-level superstar.
We’ll find out soon enough what they’re able to pull off.
