A championship team is usually expensive. In 2019, the Toronto Raptors paid $ 25 million in luxury taxes. In 2018, the Golden State Warriors paid $ 32 million. When the Cleveland Cavaliers won it all in 2016, their bill was $ 54 million.
But the Los Angeles Lakers accomplished a somewhat rare feat last season: they won the NBA title without paying the luxury fee.
And that’s a good thing, because trying to turn the LeBron James and Anthony Davis couple into a dynasty could be very costly. How expensive? The Los Angeles luxury tax and payroll bill could exceed $ 250 million for next season alone.
Future free agent Dennis Schroder became eligible to sign a contract extension on February 16. And given the impact he had as a player in relaxing the task on James, the Lakers are motivated to keep Schroder, a guardian they can’t replace through a free agency.
Schroder turned down a pre-season offer from the Lakers, and the two sides are expected to quarrel again now, sources for ESPN’s Adrian Wojnarowski said in December. But as they get into those conversations, the Lakers need to consider the cards, because the numbers could eventually force some tough decisions.
In the past, new contracts for Davis and Kentavious Caldwell-Pope, plus the signing of Montrezl Harrell, pushed the Lakers into the luxury tax for the first time since the 2013-14 campaign. Next year we will see extensions signed by James and Kyle Kuzma.
Meanwhile, most of the team’s roles – Harrell, Alex Caruso, Markieff Morris, Talen Horton-Tucker and Wesley Matthews – can be free agents. The Lakers also owe Luol Deng $ 5 million for next season.
The 2021 free agent market has been wiped out by many of the biggest names as Giannis Antetokounmpo, Paul George, Rudy Gobert and James have chosen to sign extensions to stay with their current teams. But there could be another 10 teams with $ 20 million or more in the capitalization space and another hand with more than $ 10 million.
– Los Angeles Lakers (@Lakers) February 28, 2021
That means the Lakers could have competition to keep their players. As an athletic guard who can defend, unrestricted agent Caruso will have suitors. League executives believe it could attract interest for the full range of mid-level exceptions, which is $ 9.5 million next season. (Caruso is currently earning $ 2.7 million.)
Horton-Tucker is another player who could have an exciting free agency next summer. He has on average only 6.7 points and 2.5 assists, but the teams are following him with interest.
The second-year striker will be a restricted free agent, limiting the types of offers he can receive and giving the Lakers the ability to equalize, but that doesn’t mean it’s easy to do.
“He is a talented defender, with a great length and a great advantage, who is only 20 years old. In this market, this is exactly the type of player you want to pursue,” said an Eastern Conference executive. “There might be some teams testing them and offering them (Horton-Tucker) an offer sheet thinking they could get him out.”
Horton-Tucker’s salary for next season cannot be higher than the average average salary, which is $ 9.5 million. But rival teams have the option to cancel a deal, known as a poison pill contract, to make it difficult for teams to match. Players like Jeremy Lin and Tyler Johnson have been included in such offers in the past.
In this case, a team that wants to maximize the pressure on the Lakers could offer Horton-Tucker a deal in the range of four years and $ 60 million, the last two years reaching $ 19.7 million and $ 20.7 million, respectively. of dollars.
Then there is Harrell, who can choose to give up his contract and receive a payment of up to $ 11.5 million from the Lakers if he chooses to re-sign it. With Marc Gasol at the end of his career and a few ways to replace Harrell’s production in the free agency, keeping Harrell could also be a priority.
Which brings back the decision now on Lakers director Rob Pelinka’s office: what to do with Schroder.
In the last season, quality combined guards, such as Schroder, have done well in the free agency. Bogdan Bogdanovic received a four-year, $ 72 million contract from the Atlanta Hawks. Fred VanVleet received four years and $ 85 million from the Raptors. Two years ago, the San Antonio Spurs awarded Dejounte Murray a $ 64 million guaranteed four-year contract, which could be the bottom line of a Schroder transaction.
Keeping Caruso, Horton-Tucker, Schroder and Harrell at their potential market values could lead to a $ 150 million Lakers salary. (Gasol’s $ 2.7 million salary is already guaranteed.) That without completing the list of other veterans or retaining Morris or Matthews.
By doing so, even with minimum wages, the Lakers could seek a base salary of about $ 170 million to keep the team intact. Add over $ 100 million in luxury taxes, and your commitments for next season would increase by $ 250 million to $ 270 million.
The Lakers are a money-making organization. They have the largest local television contract in the league, paying $ 200 million a year. Expenditure has not been a problem in the past. Since the start of the luxury tax in the 2002-03 season, the Buss family has earned a total of over $ 120 million to exceed the salary cap.
However, these figures represent a new threshold that will come from two years of losses due to the COVID-19 pandemic.
No one should feel bad; Lakers are one of the richest and most valuable franchises in the world. His two future famous halls are locked in transactions.
But as the Lakers enter a time when they have to make contractual decisions about most of their team, there could be a tough call or two at hand.
Bobby Marks contributed to this note.