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Losing Howard Lowers Cap Cost for Lakers
Posted By HOOPSWORLD On July 6, 2013 @ 4:15 pm In Headlines,NBA Headlines | No Comments
The loss of Dwight Howard will take some time for the Lakers to get over, but the franchise saved a significant amount of money in his departure.
With Howard on the books at $20.5 million, the team’s payroll might have climbed to as high as $104.3 million — assuming the Lakers would use their taxpayer mid-level exception of $3.2 million to add another piece.
Under the new collective bargaining agreement, the tax rate shifts this season from flat to exponential. The Lakers at $104.3 million would be on hook for an astounding $97.9 million in luxury tax for a total of $202.3 million.
Now if the Laker spend their mid-level exception, they’ll climb as high as roughly $85 million in salary and a more-manageable $26 million in tax. Of course that raises the question — could amnesty still come into play?
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