the Portland Path Blazers They’re hanging on to a 19-19 report because the NBA commerce season teeters into excessive gear. The mixture of lofty ambitions and mediocre efficiency suggests the Blazers shall be energetic because the February 9 buying and selling deadline approaches. The Blazers have younger gamers, expertise, and even an expiring contract or two to benefit from as attainable avenues for enchancment. They want dimension and protection, amongst different issues. Is it attainable to get married subsequent month?
Whereas offers are solely attainable, two elements present refined pace bumps in Portland’s quest to finish the deal. Each are monetary. That is often the toughest a part of the NBA commerce puzzle for normal individuals to grasp, however each of those points are plain and easy.
The primary situation is our previous buddy the posh tax.
The Blazers fall roughly $67,000 underneath the tax threshold for 2022-23. In a league the place salaries are measured within the hundreds of thousands, that is a really small margin. To Portland’s credit score they have been capable of come so shut. They money in on each out there greenback with out going via tax territory. It additionally implies that they have no {dollars} left to spend except they wish to cross the border into tax territory.
Doing so could have two penalties.
On the finish of the season, when all tax penalties are collected, the posh tax {dollars} collected from the offenders are divided between non-taxpaying groups. This often quantities to some million {dollars}. If the Blazers receives a commission greater than they ship in a commerce, not solely will they must pay a penalty themselves, they will lose out on that further income. This value should be factored into any consideration of offers within the coming months.
Coming into the posh tax additionally restarts the clock on the “repeated tax”. That is a further penalty for groups that exceed the tax restrict in three out of 4 consecutive seasons. The Blazers paid taxes in 2018 and 2019, then slipped in 2020. They needed to be cautious to not cross the road in 2021, although, as a result of they might have had a repeater tax penalty. They succeeded in resetting the clock by posting two years in a row with out a violation.
This appears to go away them free and clear. Besides they simply signed Damian Lillard to an enormous four-season extension past this season. Assuming in addition they prolong their Grammy Grant, they’re taking a look at a assured tax bypass within the close to future. It is exhausting to see how they will keep away from that within the distant future, too, assuming Lillard stays with the group.
We might provide you with eventualities wherein the Blazers teeter underneath the tax threshold in 2026, however even that is not a certain factor. It is nearly inconceivable to search out any that maintain it under that degree in 2024 or 2025. This offers the Blazers nice incentive to remain under the tax threshold in 2023. If they’ll keep away from paying taxes this 12 months, they’re giving themselves flexibility for the long run. In the event that they cross the road, they’re possible taking a look at having to remain under par in 2026 and 2027 to keep away from paying a fortune. With Lillard set to make $58.6 and $63.2 million over these two seasons, it is neither a sexy nor a sensible choice.
For these causes, any deal the Blazers pull via subsequent month might want to pay lower than they ship in, or no less than drop lifeless. If not, Portland will want to verify the transfer lands them in a dispute clear sufficient to justify paying taxes — and doubtlessly reimposing taxes — down the highway. With it exhausting to go 19-19 and end as a Championship Contender in a month, it’s extremely possible that the Blazers shall be restricted within the quantity of wage they’re keen to pocket for the remainder of this season.
Subsequent… issue two: contracts