The NBA announced its salary cap and luxury-tax threshold for the 2013-14 season on Tuesday and six teams were also given their bills for tax payments they owe the league for the 2012-13 season. As everyone should expect, the Los Angeles Lakers had the biggest bill of the season.
The Lakers will be forced to pay $29,259,739, far surpassing the other teams that have bills for the season. But thanks to Dwight Howard’s defection to the Houston Rockets, the Lakers will owe much less next season. The five other teams that owe luxury-tax bills for the 2012-13 season are the Miami Heat ($13,346,242), Brooklyn Nets ($12,883,647), New York Knicks ($9,962,406), Chicago Bulls ($3,932,336) and Boston Celtics ($1,181,640).
Luxury-tax penalties will be much bigger starting next season, which punishes teams for being repeat offenders over the tax threshold. The Nets alone are projected to have a bill in the $75 million range next year.
Half of the total tax paid by the six teams listed ($70,556,010) will be used to fund revenue sharing for the 2012-13 season. The remaining 50 percent will be handed out equally among the other non-taxpaying teams. Therefore, each non-taxpaying team will receive 1/24th of $35,283,005, which equals $1,470,125 per team.
The taxpaying teams will have to pay their bills by July 24.
The NBA announced that the salary cap for the 2013-14 season will be $58.7 million and the tax threshold will be $71.7 million. Non-taxpayers get the benefit of being able to use the full mid-level exception, which is $5.15 million. Taxpaying teams, the mid-level exception is for $3.2 million. Team with room under the salary cap can also use a mid-level exception worth $2.7 million.