Denver and Utah: Trading places
If you were describing the circumstances by which an NBA team would spend $82 million in payroll this season, the Denver Nuggets instantly would jump to mind as past luxury-tax payers coming off a run to the Western Conference finals.
And if you were describing the circumstances by which a team would sell draft picks, neglect to re-sign players and do everything possible to trim payroll, the Jazz would jump to mind after last season's first-round playoff exit.
Yet the Jazz and the Nuggets seemingly traded places this off-season, and although the Nuggets finished six games ahead of the Jazz in in the Northwest Division standings, the gap between the two seemingly narrowed this summer.
The Nuggets re-signed Chris Andersen to a five-year, $21.2 million deal and drafted Ty Lawson, but otherwise have had one of the most mystifying summers in the league.
They lost Dahntay Jones, who signed a four-year, $11 million contract with Indiana, as well as Linas Kleiza, who took the Josh Childress option as a restricted free agent in signing a two-year, $12.2 million deal with Greek club Olympiakos.
Most tellingly, the Nuggets gave up their 2010 first-round pick if Memphis would take on Steven Hunter and his $3.7 million salary. That represented serious tax savings for Denver, but the precedent of trading away draft picks is a dangerous one.
The Nuggets did acquire former first-round pick Arron Afflalo from Detroit, but otherwise it has been a quiet summer in Denver, which traded for Malik Allen and re-signed Anthony Carter and Johan Petro.
Even after such a dearth of moves, the Nuggets remain over the NBA's tax threshold by $2 million while needing to add a 13th player to their roster. It's safe to say the Nuggets didn't bolster their team the same way the Lakers, Cavaliers or Magic did.
As handcuffed as Denver has been by its tax concerns, the Jazz seemingly exist in a different universe by comparison. Keep in mind that Denver plays in the 16th-largest market in the country, compared to the Jazz in the 31st.
The Jazz could have bowed to tax concerns in June and declined their option to bring back Kyrylo Fesenko, who will cost them $1.7 million between his salary and the tax the Jazz are in line to pay at the end of this season.
They could have sold their first-round pick as well - - the Lakers got $3 million from New York for an even lower pick - - yet the Jazz opted to draft Eric Maynor (who will make $1.3 million) and then re-signed Ronnie Price.
That's two backup point guards at a cost of $2.6 million, $5.13 million when factoring in the tax.
The Jazz could have looked to trade Carlos Boozer largely for tax relief soon after he opted to play the final year of his contract. Two months later, Boozer still is on the roster and the Jazz are staring at a $12 million tax bill.
Finally, the Jazz could have passed on re-signing Paul Millsap, though the wisdom of that would have been questioned. As toxic as Portland's offer sheet was purported to be, the Jazz felt as if the price was fair for Millsap in Years 2-4.
Had the two front offices traded places, the Jazz likely would have declined the Fesenko option, sold their draft pick and dealt Boozer. The Nuggets would have re-signed Andersen while keeping Kleiza, Jones and that 2010 first-round pick.
It's just amazing how two teams that play in the same division could act so differently when it comes to the luxury tax.
--Ross Siler
And if you were describing the circumstances by which a team would sell draft picks, neglect to re-sign players and do everything possible to trim payroll, the Jazz would jump to mind after last season's first-round playoff exit.
Yet the Jazz and the Nuggets seemingly traded places this off-season, and although the Nuggets finished six games ahead of the Jazz in in the Northwest Division standings, the gap between the two seemingly narrowed this summer.
The Nuggets re-signed Chris Andersen to a five-year, $21.2 million deal and drafted Ty Lawson, but otherwise have had one of the most mystifying summers in the league.
They lost Dahntay Jones, who signed a four-year, $11 million contract with Indiana, as well as Linas Kleiza, who took the Josh Childress option as a restricted free agent in signing a two-year, $12.2 million deal with Greek club Olympiakos.
Most tellingly, the Nuggets gave up their 2010 first-round pick if Memphis would take on Steven Hunter and his $3.7 million salary. That represented serious tax savings for Denver, but the precedent of trading away draft picks is a dangerous one.
The Nuggets did acquire former first-round pick Arron Afflalo from Detroit, but otherwise it has been a quiet summer in Denver, which traded for Malik Allen and re-signed Anthony Carter and Johan Petro.
Even after such a dearth of moves, the Nuggets remain over the NBA's tax threshold by $2 million while needing to add a 13th player to their roster. It's safe to say the Nuggets didn't bolster their team the same way the Lakers, Cavaliers or Magic did.
As handcuffed as Denver has been by its tax concerns, the Jazz seemingly exist in a different universe by comparison. Keep in mind that Denver plays in the 16th-largest market in the country, compared to the Jazz in the 31st.
The Jazz could have bowed to tax concerns in June and declined their option to bring back Kyrylo Fesenko, who will cost them $1.7 million between his salary and the tax the Jazz are in line to pay at the end of this season.
They could have sold their first-round pick as well - - the Lakers got $3 million from New York for an even lower pick - - yet the Jazz opted to draft Eric Maynor (who will make $1.3 million) and then re-signed Ronnie Price.
That's two backup point guards at a cost of $2.6 million, $5.13 million when factoring in the tax.
The Jazz could have looked to trade Carlos Boozer largely for tax relief soon after he opted to play the final year of his contract. Two months later, Boozer still is on the roster and the Jazz are staring at a $12 million tax bill.
Finally, the Jazz could have passed on re-signing Paul Millsap, though the wisdom of that would have been questioned. As toxic as Portland's offer sheet was purported to be, the Jazz felt as if the price was fair for Millsap in Years 2-4.
Had the two front offices traded places, the Jazz likely would have declined the Fesenko option, sold their draft pick and dealt Boozer. The Nuggets would have re-signed Andersen while keeping Kleiza, Jones and that 2010 first-round pick.
It's just amazing how two teams that play in the same division could act so differently when it comes to the luxury tax.
--Ross Siler
4:02 PM
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2 Comments:
That all may be true but Denver will finish six games ahead of the Jazz again this season. Both teams will be looking up at Portland.
Ross:
The Jazz have to have 13 players, since Fes and Price are at the minimum, you would only replace them with similar or higher salaries. It's not like they needed fewer players. Also, I think Prices has pare paid by the NBA and waived from tax because of the veterans minimum rules.
If they could have had Boozer decline or pass off his salary to another team, don't you think they would have?
Selling the 1st round pick could make sense, but you still need another body, to fill the roster and backup DWil, so in the end you save maybe $1-2m salary and tax.
Jazzaholic
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