Thunder closer to dropping below luxury tax line
The Thunder i s closer to dropping below the luxury tax line than it has been since the tax spike in 2016-17. But that doesn't necessarily mean it will get there.
With the trade deadline two weeks away, one underlying factor will put Thunder front office decisions in perspective: The franchise is motivated by sustainable success. Especially as it heads toward a rebuild, the Thunder won't jeopardize its long-term plan for a shortterm payoff.
Thunder general manager Sam Presti said as much in his July editorial in The Oklahoman.
“In order to build — and then sustain — a truly great basketball team, it requires a method,” Presti wrote. “This method is not guesswork or a convenient message that miscasts other's good fortune as a repeatable skill. To build true excellence in any industry, and then sustain it, requires trading on time and playing the empirical odds. This will require strategic discipline and thoughtful patience, but these are values our organization has always held high. That's how longevity is earned. It is important to remember that.”
Yes, savings are part of the franchise's goal as it enters a new era. They are crucial to the “replenish” stage in Presti's “reposition, replenish, rebuild” mantra. So, if the Thunder sees a route to drop below the tax, which doesn't require forfeiting valuable assets – whether that be via trade or a buyout – it will likely take it.
But OKC isn't clambering to get below the tax for two reasons: The Thunder has already drastically cut expenses, and the financial incentive continues to drop as other teams cut their luxury tax bills.
Now, because of t he Thunder's extreme spending in recent years, it is subject to the repeater tax. Trading Paul George ($ 33 million salary this season) to the Clippers for Shai Gilgeous-Alexander ($3.95 million) and Danilo Gallinari ($22.6 million) began the work of cutting the Thunder's luxury tax bill. Then, by trading Jerami Grant ($9.35 million) to the Nuggets for a 2020 first round pick, OKC saved another $39 million in salary and luxury tax spending. OKC now sits about $920,000 over the tax.
After already achieving tens of millions of dollars of savings, shedding less than $ 1 million dollars to drop below the tax is less urgent. No matter what happens this year, the Thunder will likely be below the tax for years to come.
Which brings us to Reason No. 2. Other teams aren' t spending much above the luxury tax this year either, which means the distribution to nontax-paying teams has decreased.
As of Tuesday, the projected distribution of $680,000 to the 25 teams under the luxury tax is the lowest since the tax spike of 2016-17, according to ESPN front office insider Bobby Marks. If the Thunder maneuvers under the tax line, the distribution from the tax fund will decrease even more. That all but removes the additional financial incentive to drop below the luxury tax limit.
Since the Thunder traded George to the Clippers t his summer, the team has been open to trade calls. With a mix of proven veterans, expiring contracts, and veterans on expiring contracts, the Thunder has assets that might be enticing for playoff contenders.
OKC could even add to its tax bill. Teams around the league have been surprised at the Thunder's “willingness to absorb their unwanted salary in potential t r ades,” The Athletic's Shams Charania reported in December.
That ali gns with t he Thunder's future-oriented thinking and track record of creative trades (see the trade that sent Chris Paul, two first-round draft picks and two pick swaps to OKC in exchange for Russell Westbrook). The Thunder could use a trade exception to keep its current team intact and stockpile any additional assets it receives for taking on a bad contract.
Three things to know
• The Thunder beat the Magic 102-94 on Nov. 5 in Oklahoma City. Evan Fournier, Orlando's leading scorer, shot 0-of-7 in the loss. Shai Gilgeous-Alexander led the Thunder with 24 points.
• The Thunder has won seven of its last eight road games after starting the season with an 0-6 road record. It's 11-4 on the road since Nov. 25. But the Thunder hasn't fared well in Wednesday night games—home or away. OKC is 1-6 on Wednesdays. The Thunder is at or above .500 on all other days of the week.
•OK Ch as played a league-high 30 games decided in clutch time — the last five minutes of a game that's within five points. The Thunder is 18-12 in those games. Chris Paul leads the NBA with 103 points in clutch time. Jazz guard Donovan Mitchell is second with 91 clutch-time points.