- J.R. Smith annihilates Olivia Harlan Dekker, insinuates husband uses N-bombs
- Sam Dekker’s wife agrees that J.R. Smith amongst ‘dumbest people on planet’
- Sam Dekker issues strong response to J.R. Smith’s accusation that he supports Donald Trump
- Report: Cavs to hold pre-draft workouts for Obi Toppin, other top prospects this week
- J.R. Smith says former Cavs swingman was only teammate he couldn’t ‘stand’ in entire NBA career
- Report: J.B. Bickerstaff reveals ‘positive’ conversations with Andre Drummond about future with Cavs
- Skip Bayless makes strong argument why he would take 2016 Cavs over 2020 Lakers
- LeBron James gets ‘chills’ rewatching Cavs’ historic NBA Finals win over Warriors
- Andre Drummond hints at working towards major evolution in his game
- Video: Cavs big man seen getting schooled by WNBA star in 1-on-1 matchup
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.