The Vertical: 2019 Warriors Salary Cap + Luxury Tax Could Equal $300 Million

[Spens1]

Something does have to give. I think Durant and Curry will stay and even Green stays, but if you look at who is the most disposable of that core 4, its Klay. Obviously they'd prefer to keep him but even they can't keep him, they'll run over the hard cap and be so far over it would be ridiculous.

Obviously Klay is locked up till 2019 and Draymond to 2020, but i could see them around 2019ish trading Klay for someone much younger, maybe not as good at the time but is a somewhat lengthy 3&D.

[INKtastic]

Oh, I didn't realize the deals (that haven't even been made yet) have been publicized. Could you show me these docs? Or are you referring to the baseless speculation of an article regarding the revenue of the tiny Kia patch they are demoing on every team?

on the Cavs goodyear deal

Read on Twitter

?

An anonymous leak on a deal that isn't public. Case closed.

There are a ton of articles, I just grabbed the first thing I found. Here's the cleveland.com article on it:

http://www.cleveland.com/cavs/index.ssf/2017/05/goodyear_logo_on_jersey_could.html

[Biased_Fan6425]

You are delusional if you think this players would play for less than the max.

For 1 Dirk Nowitzki there are 20 Kobe Bryant's.

[andrewww]

http://www.espn.com/nba/story/_/id/19509826/kevin-durant-willing-take-less-max-keep-golden-state-warriors-core-intact

[improper]

You are delusional if you think this players would play for less than the max.

For 1 Dirk Nowitzki there are 20 Kobe Bryant's.

I'd actually say Kobe was the exception there rather than the rule. Typically aging vets and stars are willing to take a bit of a discount to play for a winner. Kobe went the opposite way and demanded a contract everyone knew he was no longer worth on the court, and the team payed him out of loyalty.

[improper]

http://www.espn.com/nba/story/_/id/19509826/kevin-durant-willing-take-less-max-keep-golden-state-warriors-core-intact

Kind of depends what less than the max means. If it's a discount like Wade, Bosh, and LeBron took to play for the Heat, that wasn't exactly a monumental discount. They were still making close to max money, just not exactly max money.

[andrewww]

You are delusional if you think this players would play for less than the max.

For 1 Dirk Nowitzki there are 20 Kobe Bryant's.

I'd actually say Kobe was the exception there rather than the rule. Typically aging vets and stars are willing to take a bit of a discount to play for a winner. Kobe went the opposite way and demanded a contract everyone knew he was no longer worth on the court, and the team payed him out of loyalty.

Kobe didnt demand the contract.

[improper]

You are delusional if you think this players would play for less than the max.

For 1 Dirk Nowitzki there are 20 Kobe Bryant's.

I'd actually say Kobe was the exception there rather than the rule. Typically aging vets and stars are willing to take a bit of a discount to play for a winner. Kobe went the opposite way and demanded a contract everyone knew he was no longer worth on the court, and the team payed him out of loyalty.

Kobe didnt demand the contract.

So you think he would have accepted a smaller one?

[boomershadow]

This does seem fake as others have mentioned, it assumes a fallacy scenario where each player signs the new max each year? Yet many are under contract for years.

This is the point that should be being discussed and isn't. The Warriors have several of these guys under contract and aren't going to renegotiate Max contract extensions each year just because.

[BloodNinja]

lacob will pay it. it's a peen measuring contest out in the valley.

No way any sensible owner will pay that luxury tax. I don't care If they have Bill Gates money.

You need Arab money to pay that.

[andrewww]

I'd actually say Kobe was the exception there rather than the rule. Typically aging vets and stars are willing to take a bit of a discount to play for a winner. Kobe went the opposite way and demanded a contract everyone knew he was no longer worth on the court, and the team payed him out of loyalty.

Kobe didnt demand the contract.

So you think he would have accepted a smaller one?

Probably, though how much smaller he would have accepted is pure speculation nobody but he would know.

[andrewww]

OAKLAND, Calif. -- Golden State Warriors forward Kevin Durant is willing to take less than the maximum contract extension he is eligible for this summer as a 10-year veteran if it helps the Warriors keep the core of their team intact, league sources told ESPN.

Durant's gesture would allow the Warriors to keep their entire core together for years to come even as star point guard Stephen Curry potentially signs one of the first five-year, "supermax" contracts created by the new collective bargaining agreement in which a team can reward one designated veteran player per year with a contract starting at 35 percent of next year's projected $101 million salary cap.

This is particularly relevant to free agents Andre Iguodala and Shaun Livingston, who have been pivotal to the Warriors' success as they have advanced to three straight NBA Finals.

In order to sign Durant to the maximum possible extension this offseason, starting at an estimated $35.4 million per year, the Warriors would have to renounce their rights to Iguodala and Livingston to create room under the salary cap. The most they can pay Durant in 2017-18 without creating cap space is 120 percent of his 2016-17 salary, a little less than $32 million.

Curry, long one of the league's most underpaid stars at about $11 million per year, could then sign a new contract starting at $35.4 million a season and be worth approximately $205 million over the next five years.

But because Durant is willing to take less than the maximum he is eligible for this season, according to league sources, the Warriors would not need to create room under the cap to re-sign him and thus would not need to renounce their rights to any of their other free agents.

Durant could sign a so-called "non-Bird" extension for up to four years, but a more likely scenario would have him sign another two-year deal, with a player option on the second year (similar to what LeBron James did in Cleveland for several years). Durant would then be eligible for another one-plus-one deal next year starting at an estimated $35.7 million and a five-year, supermax contract of approximately $217 starting in 2019-20.

By taking approximately $4 million less than his max next year and waiting to get his long-term extension for at least another season, Durant would allow the Warriors a chance to use their Bird rights to re-sign their own free agents (mostly notably Iguodala and Livingston) to deals far more comparable to what they'd likely see on the open market.

Iguodala is expected to receive interest from a number of teams such as Phoenix, Minnesota and Atlanta, league sources tell ESPN.

While sources stressed that Durant has not yet decided on how to structure his next contract, it is believed he's willing to take less than the maximum he's eligible for this summer in order to keep the Warriors core together and give them the best chance of contending for years to come.

Durant has said on multiple occasions that he intends to stay with the Warriors for many years, and he has put roots down in the Bay Area both personally and professionally. Durant and his business partner Rich Kleiman have set up their business, the Durant Company, in the Bay Area. He has forged partnerships with California-based companies such as YouTube, Acorns and Postmates. In a New York Times profile this spring, Durant revealed that he is in business with Silicon Valley "super angel" investor Ronald Conway and consulting with Laurene Powell Jobs, the widow of Apple founder Steve Jobs.

According to the Times story, Durant and Kleiman watched the election results at the home of Eddy Cue, Apple's senior vice president for internet software and services, along with Tim Cook, Apple chief executive, and Pharrell Williams.

For the past four years, Curry has been one of the best bargains in the NBA, despite winning back-to-back MVP awards in 2015 and 2016.

Curry's contract, which was signed at a time when concerns over his chronically sprained ankles cast doubt that he'd reach his enormous potential, has enabled the Warriors to surround him with a stronger supporting cast than other teams with multiple superstars.

[Young_Star11]

Players made sacrifices to keep winning teams together. We'll soon see.

[antonac]

I'll take a pretty dim view of Durant if he demands the maximum money, to the point I hope the Warriors cut him loose. It just feels a bit tacky given Curry and Draymond in particular have had to play in their primes on poor contracts while Durants been on mega-bucks in OKC, but Curry and Draymond are the guys Durant wants to win him a title.

Earn your keep, so far Durant has not made the Warriors that much better.

[INKtastic]

I'll take a pretty dim view of Durant if he demands the maximum money, to the point I hope the Warriors cut him loose. It just feels a bit tacky given Curry and Draymond in particular have had to play in their primes on poor contracts while Durants been on mega-bucks in OKC, but Curry and Draymond are the guys Durant wants to win him a title.

Earn your keep, so far Durant has not made the Warriors that much better.

How is it Durant's fault Curry wasn't considered a max player the last time he was a free agent?

And doesn't this all just accelerate how soon the Warriors become a tax paying team? They are pretty much guaranteed to be a tax paying team in 2017-18 if they keep Igoudala and Livingston.

[andrewww]

Players made sacrifices to keep winning teams together. We'll soon see.

Yep, though all indications are that this group is Spurs-esq in their continuity and friendship as a family. Livingston was the main casualty from first glance but even he may take less if KD doesnt go for the max.

[Warriorfan]

It's hard to get to that 300 million dollar figure.

KD 40, Curry 40, Thompson 36, Green 36, 4 mle 12 mil, 4 vet min 6.8 , 4 rookies 3.2

Total 174 million. Luxury Tax Apron 134 million. That's about 250 million payroll.

Cleveland Toronto and Clippers face bigger tax issues in the future.

[HurricaneKid]

They have to make decisions within the next 2 years. Starting with this summer. To sign Durant and Curry both to the max, they have to renounce their bird rights to players.

Cavs payroll + luxury tax last year was about $170 million and the team lost $40 million. They are in the same ball park again this year.

Dan Gilbert is worth $5.8 billion. Joe Lacob is worth $400 million.

KD can sign a 32M 1+1 and then sign a max deal next offseason and they can keep Iggy (depending on what he wants/salary demands). They would need to rescind Zaza and Livingston. Oh well. Then Zaza/West/Barnes/McGee can decide if they want to stick around on a min/room exc deal. If they don't all re-sign, McCaw will be ready for more min next year anyhow. They will be better next year than this year.

And the Warriors are worth ~3B. Whoever told you Lacob was worth peanuts was wrong. He bought the team for 450M. The equity for the Warriors alone is substantially higher than that and EASILY accessed.

https://www.forbes.com/teams/golden-state-warriors/
Shows >300M a year in revenues. And that is before they open their new arena.

If you actually believe the Cavs are losing 40M/ you need to look into that a little more. I stare at P&Ls all day. You can make paper say a lot of things that just aren't so. Carrying a 40M loss was merely a means to an end for Gilbert.

https://www.forbes.com/sites/kurtbadenhausen/2017/01/27/how-lebrons-cavaliers-lost-an-nba-high-40-million-last-season/#2c7dcb117699

Explain why it isn't so.

All NBA teams are privately owned which means the only financial information we have is the information they provide us. It is perfectly legal to write off depreciation on an asset even if it is appreciating in value at 30% a year. Without the books stated income means absolutely nothing. This point was widely made when ownership cried poor at the last CBA and the players were not allowed access to their complete books. And cash heavy industries like sporting events are even more difficult to verify true income levels on.

[mudsak]

Golden State and Cleveland are going to keep paying whatever they have to because it guarantees them a trip to the finals every single year. Hell, the warriors don't even need Klay. They can more away from him and still be a contender.

I don't think so... I think this year is THE peak year for this team. This coming offeason they're already going to be squeezed to keep Iggy (a 6th MOY), Livingston, and McGee. Iggy is obviously the most important piece. The loss of Iggy will be difficult to replace. He's a defensive stopper, a well above average playmaker, shoots the 3, can switch/play multiple positions, rebound, can score if needed, etc... He's a reliable glue guy who can do it all. Livingston is above average for a backup PG... a total luxury for GS right now. McGee became an insane luxury for GS this season.

Klay... he's the best 3/D player in the NBA...anyone who doesn't think that makes this GS team better is mistaken.

GS will still be good, and they've got a great FO who will do good to fill in the gaps. I think they'll also benefit from being a very attractive location to lure free agents, and vet ring-chasers. BUT... they'll be hard pressed to maintain the team at this depth level for consecutive years.

[jswede]

KD can sign a 32M 1+1 and then sign a max deal next offseason and they can keep Iggy (depending on what he wants/salary demands). They would need to rescind Zaza and Livingston. Oh well. Then Zaza/West/Barnes/McGee can decide if they want to stick around on a min/room exc deal. If they don't all re-sign, McCaw will be ready for more min next year anyhow. They will be better next year than this year.

And the Warriors are worth ~3B. Whoever told you Lacob was worth peanuts was wrong. He bought the team for 450M. The equity for the Warriors alone is substantially higher than that and EASILY accessed.

https://www.forbes.com/teams/golden-state-warriors/
Shows >300M a year in revenues. And that is before they open their new arena.

If you actually believe the Cavs are losing 40M/ you need to look into that a little more. I stare at P&Ls all day. You can make paper say a lot of things that just aren't so. Carrying a 40M loss was merely a means to an end for Gilbert.

https://www.forbes.com/sites/kurtbadenhausen/2017/01/27/how-lebrons-cavaliers-lost-an-nba-high-40-million-last-season/#2c7dcb117699

Explain why it isn't so.

All NBA teams are privately owned which means the only financial information we have is the information they provide us. It is perfectly legal to write off depreciation on an asset even if it is appreciating in value at 30% a year. Without the books stated income means absolutely nothing. This point was widely made when ownership cried poor at the last CBA and the players were not allowed access to their complete books. And cash heavy industries like sporting events are even more difficult to verify true income levels on.

Um, the 185mil they spent last year was not provided by the team. It was public.