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Terry Pluto: ‘Qualifying Offer to Tristan Thompson Will Cost Cavs About $33 Million in Luxury Tax’
- Updated: September 22, 2015
The question seems to be, however, at what price? Terry Pluto of The Plain Dealer recently wrote a piece about the Cavaliers and Thompson needing to reach a compromise in regards to contract negotiations between both sides. During the article, Pluto states that a qualifying offer worth $6.9 million accepted by Thompson would cost around $33 million in luxury tax this season:
“If Tristan Thompson signs the one-year qualifying offer for $6.9 million, I’m told the Cavs will pay about $33 million in luxury tax this season.”
Pluto further goes on to comment on how much it would cost the Cavaliers if they were to sign the power forward to an extension in the $14 million range:
“If he signs an extension starting in the $14 million range, their luxury tax bill could be $50 million”
In either scenario, re-signing Thompson for this upcoming season is going to cost the organization a lot of dough. It seems the luxury tax bill isn’t a pressing concern for owner Dan Gilbert, as the Cavaliers look to bring its first championship to the franchise this season.
For comparison’s sake, Gilbert paid a combined $45 million in luxury tax from 2008 until 2010. In LeBron James‘ final three seasons during his first stint in Cleveland, Gilbert paid about $15 million in luxury tax per season.
The most luxury tax any team paid was $90 million by the Brooklyn Nets in 2013-14. The second-highest luxury tax figure paid was the $52 million by the Portland Trail Blazers during the 2002-03 season.
With the Cavaliers entering the 2015-16 season as championship favorites, the cost of being favored will come at a hefty price.