The Brooklyn Nets and owner Mikhail Prokhorov have never been shy about spending money, but this is a little crazy. On Wednesday the NBA released its audit of teams ahead of the start of the new fiscal year (which starts at midnight) and the Nets will pay a ridiculous, record luxury bill.
According to Brian Windhorst, the Nets owe $90.57 million in luxury taxes for the 2013-14 season. How bad is that number? Only three teams had paid more than $90 million in total tax since its inception in 2001. In all, the team paid more than $197 million in salary and luxury taxes this past season.
The Nets went all-in by trading for Paul Pierce and Kevin Garnett last year and that greatly contributed to the team’s luxury tax woes.
The league also announced it’s new salary cap, which was set at $63.065 million, a 7.5 percent increase from last season. That is less than the $63.2 million teams had estimated it at. The league’s revenues were up 5.3 percent from last year at $4.5 billion.
The new luxury tax line will be $76.8 million, which is a 7.1 percent increase from last year. The league’s maximum salaries also went up.
Only five teams wound up paying the luxury tax, the other four were: the New York Knicks ($36.3 million), Miami Heat ($14.4 million), Los Angeles Lakers ($8.9 million) and Los Angeles Clippers ($1.3 million). Each non-taxpaying team will receive $3 million as a result.