Photo by David L. Nemec/NBAE via Getty Images
Some teams used the NBA trade deadline to make some creative accounting moves.
Everyone loves the NBA trade deadline. Not only is it the last big chance for contenders to fortify their rosters for a playoff run, or for teams out of the hunt to trade veteran contributors for picks to help them rebuild, but it’s also home to basketball fans’ favorite type of transaction: Saving billionaire’s some money.
The 2024 deadline was no different, so let’s figure out which owner’s accountants will be thanking their general managers the most at the end of the year by ranking the top four coupon-cutting moves of this year’s big transaction day.
4. The Milwaukee Bucks separating twin brothers to save money on their luxury tax bill
The Bucks play in one of the smallest markets in the NBA, so it’s never surprising to see them make a slightly money-motivated move. And when considering how much they’re spending at the top of their payroll, it’s also a little more forgivable.
But trading your starting center’s identical twin brother to save $8.6 million in tax money and free up a roster spot? That’s the type of heartless stuff they pay general managers the big bucks for… so the Bucks don’t have to pay even bigger bucks.
At least Robin, ever the optimist, will always have memories to cherish from his second stint playing alongside Brook:
I enjoyed being teammates with Patrick Beverley for all of an hour and 45 minutes I’ll never forget those times#Indelible
— Robin Lopez (@rolopez42) February 8, 2024
3. The Warriors saving eight figures by dumping Corey Joseph’s veteran’s minimum
The Warriors are still slated to pay the most in luxury taxes in the NBA (approximately $181.4 million, according to Salary Swish). But they lessened that by a little bit on Thursday, as they are so far into the second apron and repeater tax that sending out just Corey Joseph’s veteran’s minimum deal will save them nearly $14 million in payroll expenses:
The Golden State Warriors will reduce their tax penalty by a whopping $13.5 million just by offloading Cory Joseph’s $2 million cap hit.
That’s how punitive the repeater tax is for teams deep in the tax.
$172.8 million projected penalty, $379 million payroll and tax combo. https://t.co/jWVdXxNGwd
— Yossi Gozlan (@YossiGozlan) February 8, 2024
Hell yeah, love it when Joe Lacob saves some money. Nothing gets me more excited for NBA basketball.
2. The Sixers getting below the luxury tax
Meanwhile, in Philadelphia, there has been a big question facing the Sixers over the last several weeks, something hovering over the fanbase like a dark cloud that the entire city has been wondering about: How is Daryl Morey going to help the Sixers duck the luxury tax for the second deadline in a row?
What, did you think I was referring to something else?
Well, fear not, as we got our answer to that first question on Thursday, as the Sixers’ series of transactions in the hours before the deadline allowed them to dip just underneath the tax again. What a coincidence they keep doing that:
The Philadelphia 76ers are now $2.7 million below the luxury tax after their two trades this morning.
They have two open roster spots and enough flexibility to pursue a player in the buyout market, like Kyle Lowry.
They also create $5.4 million & $4.3 million trade exceptions. https://t.co/QEquLCVAIS
— Yossi Gozlan (@YossiGozlan) February 8, 2024
The Philadelphia 76ers create even more flexibility for the buyout market.
3 open roster spots
$4.9 million below the tax
$2.2 million trade exception
They can sign any player in the buyout market. They seem like a good spot for a guard like Kyle Lowry or Spencer Dinwiddie. https://t.co/YqqxzvNIs3
— Yossi Gozlan (@YossiGozlan) February 8, 2024
Can’t wait to see what Sixers owner Josh Harris spends these savings from the payroll of his current title contender on. Let’s go!
1. The Raptors straight up cutting Spencer Dinwiddie to save $1.5 million
There was never any doubt about what was going to go No. 1 here. The Raptors traded Dennis Schröder and Thaddeus Young to the Brooklyn Nets for Spencer Dinwiddie in one of Thursday’s earliest transactions, but then they had a decision to make: Should they pay Dinwiddie their remaining, pro-rated portion of his just over $20 million salary to play basketball for them for the rest of the season? Or should they pay him their entire portion of that — less $1.5 million — to not play for them because he would hit the 50 games played minimum that would guarantee the rest of his contract during his stint in Toronto?
After a few hours to deliberate, they made their decision:
To avoid a $1.5M upcoming contract bonus for games played, the Toronto Raptors are planning to waive Spencer Dinwiddie, sources tell @TheAthletic @Stadium.
Major new entry to the NBA’s buyout market who will be coveted by several playoff teams. pic.twitter.com/ec3oVEBmCZ
— Shams Charania (@ShamsCharania) February 8, 2024
NBA teams avoid spending all the time, but rare is an incoming player making as much as Dinwiddie in a midseason trade cut just to avoid such a small, likely contract bonus. And for that little wrinkle in innovation, you, Raptors, win SB Nation’s inaugural Golden Coupon.
No, no, don’t get too excited, you can’t use it to pay what you owe Dinwiddie, it’s not actually worth anything. Like his non-guarantee, in this case, it’s completely ceremonial.
