Day: July 24, 2023

Exec On New Luxury Tax Rules: ‘All Of It Together Is Crippling’Exec On New Luxury Tax Rules: ‘All Of It Together Is Crippling’

The NBA has created a system of increased parity with their successive collective bargaining agreements. The new second luxury tax apron will make building a sustainable title contender even more difficult.

When viewed independently, each of the penalties aren’t excessively punitive, but in the aggregate they make managing a front office particularly difficult.

“Each individual thing is manageable, but all of it together is crippling,” an Eastern Conference executive told ESPN.

The Golden State Warriors, for example, traded Jordan Poole as he was beginning a four-year extension due to their luxury tax concerns, whereas in 2020 they took on the long-term contract of Andrew Wiggins while also receiving a protected future first round pick that became Jonathan Kuminga.

The Boston Celtics allowed Grant Williams to leave in restricted free agency in a cost cutting move, while the Los Angeles Clippers also exercised some level of austerity in letting Eric Gordon become a free agent.

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ESPN Holds Preliminary Equity Talks With NBA, MLB, NFLESPN Holds Preliminary Equity Talks With NBA, MLB, NFL

ESPN has held preliminary talks about bringing professional sports leagues on as minority investors. The NBA, MLB and NFL held talks with the media company.

Disney is considering a strategic partner for ESPN as the cable business undergoes transition.

In a statement, an NBA spokesperson said, “We have a longstanding relationship with Disney and look forward to continuing the discussions around the future of our partnership.”

The NBA and Disney have broached many potential structures around a renewal of media rights.

Disney owns 80 percent of ESPN. Hearst owns the other 20 percent.

Professional sports leagues could face conflicts of interest if they take a minority stake in ESPN.

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