The NBA’s big spenders will soon have to reckon with a much more punitive luxury tax structure. From the league’s implementation of the tax in 2003, teams have been required to pay “just” one dollar in luxury tax for every dollar in payroll that exceeds the tax threshold. This relatively soft penalty on an already soft salary cap will soon undergo significant changes. Cap guru Larry Coon describes the new luxury tax conditions under the 2011 Collective Bargaining Agreement, which will kick into effect next year:
Starting in 2012-13, teams pay an incremental tax that increases with every $5 million above the tax threshold ($1.50, $1.75, $2.50, $3.25, etc.). Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is higher still — $1 more at each increment ($2.50, $2.75, $3.50, $4.25, etc.).
The desired effect is that these heavier penalties will give pause to even the deepest pocketed, biggest spending owners such as the Knicks’ James Dolan, the Lakers’ Jerry Buss, and the Mavericks’ Mark Cuban, when it comes to dishing out big bucks on salaries. (Though many might point to this summer’s free agency period as evidence the dissuasive effect has been minimal so far).
With the Kroenke family at the helm, the Denver Nuggets have been in the upper strata of teams with wealthy owners. According to (more…)
The Denver Nuggets have been to the playoffs seven straight seasons and have posted three straight 50 win campaigns for the first time as an NBA franchise. Despite the consistency they have displayed on the court, the front office is once again in a state of flux.
The Nuggets announced today Mark Warkentien and Rex Chapman will not have their contracts renewed and thus will cease to be employed by the club at the end of August (Denver Post article, Tomasson article on FanHouse). This is no surprise as Warkentien has been granted permission to speak with other teams about their front office vacancies. Over the previous four seasons the Nuggets have had quite a few cooks around the fire. Warkentien, Chapman, Bret Bearup and George Karl have all had a say in personnel matters and do not forget Stan Kroenke ultimately determines what he is willing to spend which plays a considerable role in player personnel decisions.
Despite the crowded kitchen Warkentien was the head chef and he made a significant mark on the franchise.
The Denver Nuggets have announced the contracts of Mark Warkentien and Rex Chapman will not be renewed.
Kroenke Sports Enterprises Vice President Paul Andrews is quoted as saying:
“…after meeting with both individually in recent weeks, we decided it would be best for all parties to go their separate ways. We appreciate everything that each has done for the organization and wish them nothing but the very best in the future.”
Andrews went on to say the Nuggets are in the process of restructuring the front office and they have begun a search for replacements.