Nuggets, Suns Among NBA Teams With Luxury Tax Considerations

Anthony’s Contract Could Pose Problem For Nuggets Next Season

The Nuggets are roughly $1M over the NBA’s luxury tax threshold of $65.4M, but the tax “doesn’t come into play until the end of the season and most observers believe the Nuggets will find a way to avoid it,” according to Chris Tomasson of the ROCKY MOUNTAIN NEWS. Nuggets F Carmelo Anthony in ’07-08 will make about $13M in the first year of a maximum deal, meaning the team “would need to make significant moves to avoid the tax.” While Nuggets Owner Stan Kroenke “won’t give a definitive answer on whether he will pay the tax,” Nuggets C Marcus Camby said, “I don’t think Mr. Kroenke wants to pay the luxury tax. This may be the last year that we’re all pretty much together.” But Kroenke said, “We don’t back away if it helps the team and we think the talent level is there.” Mark Termini, the agent for Nuggets G Earl Boykins, said that “‘every NBA team’ and ‘not just Denver’ has concerns about the luxury tax.” Tomasson noted the Knicks, Mavericks and 76ers are “almost certain to pay the tax this season” (ROCKY MOUNTAIN NEWS, 10/21).

SUNS: With the Suns’ ’07-08 payroll projected to be nearly $78M, or $9-11M above the threshold, Suns Managing Partner Robert Sarver said, “As long as we’re creating success and we’re winning and we keep improving and the fans keep supporting us, there’s no hard and fast line that says how much you have to spend. ... To me, it’s more about the success we’re creating and about doing it the right way with good contracts. I don’t have any preconceived notion now that says we have to do this or we have to do that.” More Sarver: “We’re in a solid state financially. ... To me, it hasn’t been so much about the total amount of money we spend. It’s, ‘Are we spending it in the right place, do we have the right contracts, do we have some flexibility and do we have the ingredients that together can win us a championship?’” (ARIZONA REPUBLIC, 10/21).