FanPost

The Kings' Luxury Tax Issues Next Season

I want to look at the luxury tax issues that the Kings may be in next year. There have been arguments about whether or not the Kings need to salary dump here and other forums. A pretty good source for the Kings salary cap situation is http://www.basketballinsiders.com/sacramento-kings-team-salary/. When looking at it, note that Demarcus’ contract numbers starting in 2014 can change…the number will be based on next year’s salary cap. Also, note that the projected cap next year is $62.1m and the luxury tax threshold in $75.7m, per Larry Coon.

So, looking at Kings salary structure and assuming Gay picks up his option and the Kings keep Acy around next year for $915,243, the Kings would have 10 players under contract for $68,220,485.

Rudy Gay $19,317,326

DeMarcus Cousins $13,701,250

Marcus Thornton $8,575,000

Carl Landry $6,500,000

Jason Thompson $6,037,500

Derrick Williams $6,331,404

Travis Outlaw $3,000,000

Ben McLemore $3,026,280

Quincy Acy $915,243

Ray McCallum $816,482

The team will also likely have a top 10 pick. That player will make $1,998,200 if pick 10th, $3,012,500 if picked 5th, or $4,592,200 if picked first.

Obviously, the team is going to try and resign Isaiah Thomas. I assume he resigns for about $5m, but I have seen some people project $7m. I personally think that number is a tad high, but it seems within the realm of possibility.

Assuming Isaiah signs for $5m and the Kings get the 10th pick, the Kings salary is $75,218,685 for next year. This is the lowest salary cap number I see the Kings getting without making a move.

Assuming Isaiah at $6m and the 5th pick, the Kings are at $77,232,985.

Assuming Isaiah at $7m and the 1st pick, the Kings are at $79,812,685

So, looking at this, the best case scenario WITHOUT any moves is that the Kings are just under the luxury tax. Personally, I don’t think the team is good enough next year to go over the luxury tax. The penalties for being a multiple time offender are too large. So, I think the Kings have to make a move to dump salary.

So, what kind of moves do you think the Kings should make?

I honestly think the only move is to dump Thompson for pure expiring contracts, solely because he might have that type of value and no one is going to take the last year of Thornton or Outlaw’s contract. I guess the Kings could do the same with Landry. What do you all think?

(This is a FanPost from a member of the Sactown Royalty community. The views expressed come from the member, and not Sactown Royalty staff.)

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