Wizards Still Face Luxury Tax Bill
After counting the tax savings from the 50-game suspension of Gilbert Arenas and the 38-game suspension of Javaris Crittenton and accounting for the Saturday movement, Washington's 2009-10 payroll is at $72.7 million. The luxury tax threshold is $69.9 million -- for every dollar over that line a team is, it must pay a dollar into a fund which is eventually dispersed between all teams under the tax line. As such, barring no further trades, the Wizards will owe about $2.8 million.
There's a rumor, first published by DallasBasketball.com, that Dallas will execute a second trade with Washington in which the Mavs take Fabricio Oberto in exchange for a trade exception -- the Wizards would take no player back. Oberto is due $2.99 million, so such a trade would allow Washington to slip under the threshold and receive the expected $3-5 million pay-out to teams under the line.
The real key here was the benefit from the Arenas and Crittenton suspensions. The Wizards still pay out those salaries, with the portions forfeited by each player going to charity. But under the most recent collective bargaining agreement, teams can discount their luxury tax bill 50 percent of salaries of players suspended by the league. Arenas only counts for $12.4 million in luxury tax figuring, and Crittenton counts for only $1.2 million.
Thanks to ShamSports.com for the most accurate salary numbers on the web.