Salary cap Rumors
Maybe another cap spike will come with the league’s new TV deal in 2025, fueling the next Warriors-esque empire. Maybe another LeBron-like figure will emerge to dominate the landscape. Maybe some clever GM will assemble an elite cast without angering the tax gods. “Someone’s going to figure it out,” assures a veteran team executive.
According to a league source, projections indicate that a $171 million salary cap is possible, assuming no cap smoothing, by 2025. Should the NBPA instead agree to cap smoothing, it’s likely the league will still see annual increases to the extent of $15 million, according to source.
Marc Lasry: Look, (the luxury tax) is a big part. I’m not going to tell you it’s not. I mean, it’s just — if you sign somebody for $5 million, you’re not signing him for $5 (million), you’re signing him for $25 (million), $20 million. You sort of look at that, and you’re trying to figure out, ‘Alright, look, if we’re going to do that, OK, there is a cost to it. Yeah, we want him, but that’s going to cost us $25 (million) or that’ll cost us $35 (million).’ I mean, whatever the numbers are. And I think we’re very focused on that. Look, we’re a small-market team. It’s expensive. I mean, for us, this year we’re going to lose quite a bit of money.
What’s quite a bit? Marc Lasry: Um, well think of it this way, we (will) break even before the tax (laughs). … So the tax is real money. (The tax is) what we’re going to lose. You’ll make it up. You’ll make some of it up as you move along in the playoffs, obviously, and that factors in. You’re like, ‘Well look, I know I’m going to lose ‘X (amount of money),’ but if we get to the playoffs, it starts going down.’ But yeah, it’s real money for us. But at the end of the day, the goal is that you want to keep winning a championship, so you’re going to spend the money.
Williams’s deal was originally reported to be worth $54 million over the length of that extension. However, multiple league sources tell MassLive that the deal is only worth $48 million in guaranteed money with the remaining $6 million in earnings serving as ‘unlikely’ incentives that won’t initially count against the salary cap. Jay King of the Athletic was first to report the non-guaranteed portion of the deal. Here’s a full breakout of the contract year-by year, starting with the 2022-23 season, per sources. 2022-23: $10.7 million. 2023-24: $11.6 million. 2024-25: $12.4 million. 2025-26: $13.3 million. Total: $48 million in guaranteed money.