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A breakdown on potential Lakers payroll for 2013-14 season

Assuming they re-sign Dwight Howard next summer to a maximum contract, their payroll will increase for the 2013-14 season, when stiffer luxury taxes commence under the new collective bargaining agreement.

September 18, 2012
  • If Dwight Howard re-signs next season, the Lakers would be on the hook for $94.5 million in taxes.
If Dwight Howard re-signs next season, the Lakers would be on the hook for… (Kevork Djansezian / Getty…)

Feeling the crunch

The Lakers, with a NBA-high payroll of $99.2 million this season, are on pace to pay $28.9 million in luxury taxes because their payroll is that far above the tax threshold of $70.3 million. Assuming they re-sign Dwight Howard next summer to a maximum contract, their payroll will increase for the 2013-14 season, when stiffer luxury taxes commence under the new collective bargaining agreement.

Here is a breakdown of how a potential payroll of $105 million, paired with a projected tax level of $73 million, would put the Lakers $32 million above the threshold and cost them an additional $94.5 million in taxes in the 2013-14 season:

Team salary above luxury-tax threshold/Tax rate multiplier/Incremental amount Lakers would owe

$0-$4.99 million/$1.50/$7.5 million

$5 million-$9.99 million/$1.75/$8.75 million

$10 million-$14.99 million/$2.50/$12.5 million

$15 million-$19.99 million/$3.25/$16.25 million

$20 million-$24.99 million/$3.75/$18.75 million

$25 million-$29.99 million/$4.25/$21.25 million

$30 million-$32 million/$4.75/$9.5 million

Total Lakers taxes/$94.5 million

Sources: NBA collective bargaining agreement; Larry Coon.

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