NBA Lockout: Owners Move Away From Steeply Punitive Luxury Tax, Says Report

Owners have moved away from a steeply punitive luxury tax system in the latest rounds of NBA lockout talks, reports SI.com's Zach Lowe. The league had been pushing for a graduated luxury tax in which the penalty increased as teams' payrolls got further from the salary cap. The old luxury tax system, in place for the past decade, was a simple dollar-for-dollar penalty above a threshold that ended up being roughly 20 percent higher than the league-set salary cap.

A few teams have seen fit to exceed the luxury tax threshold annually under the old rule; the Dallas Mavericks paid the tax in each season during which it was in effect, and the New York Knicks joined them every year until 2010-11, after GM Donnie Walsh cleared the decks for the 2010 free agent class.

Owners wanted a new system to make teams like the Mavericks, Knicks and L.A. Lakers -- who went $20 million over the tax line in each of the past two seasons -- think twice before adding players when they have already crossed the tax threshold. The players' union has reportedly agreed to strengthen the tax penalties somewhat, but wasn't willing to go as far as owners wanted to. We'll see where exactly the negotations end up.

This is separate but parallel to attempts by the league to regulate the types of moves teams over the tax line can make, which would essentially create two different salary caps in the NBA.

X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to SB Nation going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new SB Nation username and password

As part of the new SB Nation launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to SB Nation going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.

Join SBNation.com

You must be a member of SBNation.com to participate.

We have our own Community Guidelines at SBNation.com. You should read them.

Join SBNation.com

You must be a member of SBNation.com to participate.

We have our own Community Guidelines at SBNation.com. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.