The NBA’s trade deadline is roughly one month away and rumors and speculation should begin pouring in. This season is set to have the largest luxury tax payments in NBA history. Several of the teams with such large tax payments could look to reduce their obligation, as well as clubs hovering slightly above the luxury tax that could get under it with a trade or two.
There are also several franchises that are up against the tax and could use a little more flexibility. For example, the Miami Heat and Toronto Raptors are $166,443 and $268,540 below the luxury tax, respectively. These teams are essentially frozen from signing a player to a standard contract or increasing their payroll in a trade. Some other teams that could use more flexibility below the luxury tax include the Atlanta Hawks, Chicago Bulls, Cleveland Cavaliers, Denver Nuggets, Indiana Pacers, and Washington Wizards.
There are only a handful of teams that can operate as a dumping ground for large contracts. These are significantly below the luxury tax, and have significant cap space or trade exceptions that, if utilized, wouldn’t put them over the tax.
