Lakers Likely To Face Serious Financial Problems With New CBA

Lakers Likely To Face Serious Financial Problems With New CBA

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The Los Angeles Lakers are one of the most fortunate franchises the NBA has seen. No, it’s not by luck, but it’s because of the city the play and their owner who is willing to put together a championship team.

Jerry Buss is someone who is ready to spend money in order to succeed and the fact that the Lakers play in a major market helps them bring in extra cash. However, spending money on salaries eventually comes back and hurts every franchise. Although in past years the luxury-tax penalties were not too severe, they will get worse thanks to the new CBA.

The Lakers paid $12,557,264 in tax money last season, the most of any NBA franchise. For the 2012-13 season, the luxury tax penalty of $1 for every dollar over the tax line will remain the same; however, the season after that will see a much more punitive system, according to Hoops Rumors.

In the summer of 2013, teams over the luxury tax line are ineligible to acquire players in sign-and-trade deals, while clubs that exceed the tax threshold for the 2013/14 season will pay an incremental rate based on team salary.

Teams like the Lakers will face a harsh reality down the road, and they must make changes to their dealings in order to save money. Although Los Angeles is always striving for a championship, it may have to cut down on star power if it wants to maintain the success of the franchise.

Especially in this economy where things are extremely tough, being financial sound is imperative for NBA teams. Although the game is played to entertain the fans, the Lakers are a business and they want to make a profit. The CBA is the highest document in the league and the Lakers will have to adjust their game plan in order to make sure they don’t fall behind.