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Thread: Youth and Financial Freedom: Raps current roster beyond 2012-13

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  1. #28
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    Jul 2010
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    Ibaka signs 4 year, $40M deal with OKC. OKC's payroll now up to around $73M and that does not include Harden's extension or even qualifying offer.

    Now that OKC is in to luxury tax territory, next season if OKC were to resign Harden to a $12M deal that would actually be $33.25M per season (salary plus $1.50 tax on first $5M, $1.75 on second $5M, $2.50 tax on final $2M = $21.25 in tax).

    Harden is a great player but is he worth $33.25M per season?

    **Not saying he is coming to Toronto but the odds seem greater he'd be in Toronto in 2013-14 versus OKC**


    In the above I forgot to take in to account the contracts that were NOT guaranteed. They have about $80M in contracts but only $59M in unguaranteed contracts (including Ibaka's new deal) for 7 players.

    This is probably not the big deal I initially thought it was as they could resign Harden for close to max or max, round out the roster with minimum contracts and be looking at a tax bill around $9-10M versus the scenario I gave above.

    EDIT 2.0:

    Adrian Wojnarowski ‏@WojYahooNBA
    Serge Ibaka deal is 4 years, $48 million, league source tells Y! Sports.
    That seems more realistic. The $10M would have been a bargain based on the contracts given out to bigs of late.
    Last edited by mcHAPPY; Sat Aug 18th, 2012 at 07:47 AM.

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