29 Minutes with Kevin O'Connor

[Stifle Tower]

13/14 is the first year of the new, more punitive luxury tax. As such, this strategy may be more beneficial this coming season than in any other recent season.

I believe a team has to be a repeat offender for the tax to be extremely punitive. Most teams have already limited their exposure to the tax by limiting the number of years on select contracts. There will be less opportunity to trade for players than we think. And again, who are the players that a team is going to trade? Superstars aren't going to be on the trading block. It will be the overpaid, third and fourth options on teams and the aging veterans. It's fool's gold to think Utah is going to suddenly get a player who will transform the Jazz into a contender. Utah's "blockbuster" trade will be more along the lines of a Giri for Korver deal. Perhaps we can trade the expiring of Marvin Williams next season for a Kris Humphries-type player and a late draft pick. That will be the kind of deal Utah will make if KOC is unwilling to take on a bad contract.

 

[GVC]

I believe a team has to be a repeat offender for the tax to be extremely punitive.

It goes up by at least 50% for all tax payers this coming season. Also, there could be underperforming teams in danger of hitting the 3 in 4 years looking to dump. And, again, the Cap and tax were at exactly the minimum guaranteed in the CBA for this year. Starting next season, the cap and LT will be based off a percentage of BRI (and, to a lesser degree, payments to players in the previous season), and there's probably a good chance both fall next season. Regardless, if the Jazz can't land players they want in free agency in 2013, they're probably better off preserving their space for potential trades and 2014 free agency. Blowing their wad on Kris ****ing Humphries would be stupid.

The last time the Jazz had cap space, KOC went risky, and committed $120mm over 6 years to largely unproven Mehmet Okur and Carlos Boozer. A few months later, he extended AK for $86mm over 6 years. Yep, he signed over $200mm in contracts in a few months. Ballsy.

 

[mellow]

So, I can plan on seeing alot more 1 year deals, just like Randy Foye, in the Jazz's near future?

 

[NAOS]

So, I can plan on seeing alot more 1 year deals, just like Randy Foye, in the Jazz's near future?

Yes, and...................

 

[franklin]

In addition to the punitive LT, teams over it pay into the system instead of receiving money from it. Small market teams are going to get a lot more revenue sharing if they aren't paying LT, so there's huge financial incentive to get below the payer line.

It was mentioned recently after the CBA that Millwaukee Bucks would go from $5mm in sharing to $15mm, and the Jazz are assumed to be in the same category. This is why Memphis feels so compelled to trade below the LT line. It's not paying $3-4mm in penalties as much as losing an additional $15mm in revenue sharing.