Warriors could sign player and stay under luxury tax line


The Golden State Warriors executed two minor trades on Thursday to get the team salary under the luxury tax threshold. Now they have the flexibility to sign a player down the stretch to fill out the roster.

The Golden State Warriors traded away bench players Jeremy Tyler and Charles Jenkins to the Atlanta Hawks and Philadelphia 76ers in exchange for cash and some protected second round draft picks they may never receive, yet they played the NBA trade deadline perfectly.

The Warriors needed to use the trades to erase roughly $1.2 million in salary commitments to get the team below the NBA's 70.3 million luxury tax threshold. Rather than bite the bullet and pay in an extra dollar for each dollar by which they exceed the luxury tax line -- and start the clock on the dangerous repeater provision -- they made those two peripheral deals to send out non-essential role players.

Now they can actually sign a player back to the roster for the rest of the season and still avoid the tax, as noted by Rusty Simmons of SFGate.com:

Avoiding the tax also affords the Warriors the flexibility to immediately sign a player for a prorated minimum of less than $300,000 while staying under the luxury tax threshold; use a full mid-level exception ($5 million) instead of a mini mid-level ($3 million) to sign a free agent this summer; or take on added salary in an offseason trade.

Here's how it all works. The amount owed in luxury tax is determined at the end of the regular season, and if a player is traded away before the end of the year, none of his salary is taxed. Now that over 60 percent of the season is finished, Golden State can sign a new player to a deal that only covers the remainder of the season, which means they can add a player and still avoid the tax.

Well played, Warriors. Well played.

More in the NBA:

Metta World Peace greets cops wearing Cookie Monster pajamas

Magic trade J.J. Redick, 3 others at deadline

Josh Smith staying in Atlanta after all

Celtics make trade for backcourt help

NBA's best trade was made four months ago

Log In Sign Up

Log In Sign Up

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.




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.