Brian Windhorst and a team of ESPN's Insiders sort out life and the news from in and around the NBA world, including the teams that have spent wildly to win, the buyout market already making noise and the New Orleans Pelicans working through their losing streak.
The last time Dallas Mavericks owner Mark Cuban wrote a luxury tax check, Kyrie Irving was celebrating winning Rookie of the Year in 2012.
Nikola Jokic was 15 years old the last time the Denver Nuggets paid it.
The Boston Celtics spent more in luxury tax in trading for backup center Mike Muscala alone last Thursday than they had paid in the past nine seasons combined.
Counting billionaires' money isn't the most relevant thing when evaluating teams' readiness for a playoff run. But it showcases the amount of pressure that is building within franchises as the postseason nears.
After another round of star movement at the Feb. 9 trade deadline, this spring is shaping up to be an intense ride for a few teams that have moved their chips into the middle in ways not seen in years.
"It's about this year, it's not about [trades] that will pay dividends in two or three years," Celtics owner Wyc Grousbeck said on a team broadcast last week. "Muscle up and get the job done. That's [team president Brad Stevens'] instructions and that's what we're going to try to do."
The Muscala move cost the Celtics an additional $6 million in luxury tax -- though it was offset by a recent deal to offload the salary of Noah Vonleh -- and Grousbeck and his partners are now looking at more than $60 million in taxes this season on top of a $175 million payroll.
The Celtics have never spent like this. In the previous nine seasons, the Celtics spent a total of $3 million in taxes. They were a consistent taxpayer in the Paul Pierce/Kevin Garnett/Ray Allen era between 2008 and 2013 but not at this pace -- even adjusted for inflation.
This story is playing out across the league, and it begs the question about fallout next summer when inevitably there are disappointments. (There is belief that a new media rights deal will change the spending landscape, but that is at least two years away.)
It only amps up the stakes both for jockeying for position leading up to the postseason and the playoffs themselves, where owners who are in uncharted spending territory are going to expect results and might call for major changes if they're not delivered.
Cuban established a reputation as a wild spender his first decade in Dallas but has been significantly more judicious over the past 10 years. All that went out the window when he chased Irving, a deal that ballooned the Mavs' first tax bill since 2012 by $29 million to more than $54 million in total.
Like the Celtics and a few other contenders, that number could grow when players are added after buyout season. The Mavericks already have a pledge from veteran guard Justin Holiday once he completes a buyout from the Houston Rockets.
The Western Conference-leading Nuggets haven't gone into the tax since 2010, but governor Josh Kroenke has greenlit spending as they chase a title. This year that number is nearly $14 million on top of a $160 million payroll, though the team shaved some spending with moves at the trade deadline.
It's nearly $50 million more than Kroenke spent in 2019-20 (not accounting for COVID-19 adjustments) when the Nuggets made the conference finals. For the team to stay at this lofty level, which is not something the Kroenke family has been known for, a deep playoff run is implied.
The Milwaukee Bucks were pushing it last year when they paid more than $50 million in tax in an attempt to defend their title. After a trade for Jae Crowder at this year's deadline added $6 million to the bill, the small-market Bucks are on the hook for $75 million in tax plus nearly $180 million in salaries for this season.
When the Bucks won the title in 2021, they paid less than $1 million in tax and $135 million in salary. The attempt to maximize Giannis Antetokounmpo's championship window is being backed up with cash. It's now stretching the bounds.
It makes the Bucks' coming summer, when Brook Lopez is a free agent and Khris Middleton has the option to become one, all the more interesting when evaluating just how deeply the team is investing in this season.
None of this speaks to the outlay from the LA Clippers, at $327 million with tax, or the Golden State Warriors, now with a $350 million commitment after their deadline moves.
Just how long the Warriors, especially with the possible free agency of Draymond Green on their plate and Jordan Poole's raise from $4 million this season to more than $27 million the next, can keep this team together is in question. An early out in the playoffs -- they started the week in ninth place with Stephen Curry out because of injury again -- and consequences seem possible.
The Phoenix Suns, meanwhile, are a wild card. New owner Mat Ishbia agreed to boost tax spending from $33 million to nearly $50 million his first day on the job as part of the trade for Kevin Durant. The Suns were already paying the tax for the first time since 2010 and have seen their spending soar past $200 million for this season. Even if Ishbia has more patience during his ownership honeymoon, a team that expensive is going to be expected to contend fast.
There just isn't enough playoff success to go around for all these teams racking up costs. And that doesn't even include the non-taxpayers facing offseason drama, such as the Philadelphia 76ers, who face major playoff expectations and have James Harden headed for unrestricted free agency.
There might not be enough room at the all-in inn.
NBA front-office insider Bobby Marks takes a look inside at what immediately follows the trade deadline:
Buyout market is open for business
The NBA's in-season free agency period started minutes after the trade deadline passed Thursday.
The league's version of the transfer portal, better known as the buyout market, gives teams opportunities to add playoff-quality veterans to their rosters at an inexpensive cost.
To this date, Reggie Jackson, Patrick Beverley, Justin Holiday, Terrence Ross and Danny Green have all agreed to a contract buyout and become a free agent (each has agreed to terms with a new team except for Beverley).
For a player to be eligible for the playoffs, he must be waived by his old team by 11:59 p.m. ET on March 1. Players who are signed to a 10-day contract also are playoff eligible, even if the contract expires after March 1.
There are several factors that can lead to a player reducing his salary for the opportunity to sign with a new team, including playing time and leaving a rebuilding team for a contender.
For the championship contenders with open spots, such as Milwaukee and Phoenix, filling out their rosters with a player who becomes available after the trade deadline and is bought out of their contract (or waived outright) could make a difference for the remaining two months of the season and playoffs.
For players considering a new team, the Suns have a distinct advantage: More money to offer.
The Bucks used their $6.5 million tax midlevel exception on Joe Ingles and have only the prorated minimum available. The Suns, on the other hand, have $5.1 million remaining of the tax midlevel, though using the full amount would cost Phoenix an additional $20 million toward the luxury tax.
Over the past five years only four players -- Tristan Thompson, Gorgui Dieng, Markieff Morris and most recently Green -- took a buyout and then signed for more money than what was given back to their former team.
After agreeing to a $289,472 buyout with Houston, Green signed a $2 million contract with the Cavaliers. On top of his remaining salary owed by the Rockets, he will net an additional $1.7 million.
Green is the third player (Holiday and John Wall) the Rockets have bought out this season. Houston now has $81.7 million in dead money, $27 million more than the active players on the roster.
The Green buyout is unique because teams often include language that the set-off amount should equal 100% of all compensation earned by the player in his next contract. This happened with Jackson and Ross. That eliminates players from double-dipping with their former and now current team. There are also instances when a team includes additional language that protects itself in case a player signs for more than the prorated veterans minimum.
Beverley reached a buyout with the Magic that is contingent on signing with a new team. If Beverley sits out the remainder of the season, he would receive the full amount of his remaining salary from the Magic. If he signs with a team Tuesday, what Orlando owes Beverley would be reduced by $918,516.
In recent years, former All-Stars such as Blake Griffin, LaMarcus Aldridge and Pau Gasol sacrificed significant salaries to chase a championship with contending teams. The three players reduced their remaining salary owed by a combined $23 million. The contracts for the remainder of the season totaled $2 million.
However, they also represent a cautionary tale when it comes to thinking that the buyout market can impact a roster.
Remember in March 2021 when Brooklyn signed Griffin and Aldridge? And the Lakers signed Andre Drummond? The signings caused an uproar in the NBA, with opposing teams complaining that big-market teams had a distinct advantage in signing players bought out of their contract.
But guess what happened?
Aldridge eventually retired for health reasons. Griffin averaged 9 points per game in the playoffs for the Nets. Drummond put up the same numbers for the Lakers, and neither had a significant impact on the on-court success of either team -- with both teams losing before the conference finals.
NBA reporter Andrew Lopez reports on the latest out of New Orleans:
Injuries and a losing streak aside, Pelicans stay 'resilient'
On the night of Dec. 30, the New Orleans Pelicans were flying high.
CJ McCollum scored 42 points and hit a franchise-record 11 3-pointers, Zion Williamson had 36 points and the Pelicans improved to 23-12, putting themselves in a tie with the Nuggets at the top of the Western Conference.
Since then, things have come crashing down.
Since Dec. 31, only the Rockets, Hornets and San Antonio Spurs have a worse record than the Pelicans, who have dropped 16 of 22, including a 10-game losing streak.
According to ESPN's Basketball Power Index (BPI), the Pelicans had the toughest schedule in the league during the month of January, but it didn't help that Williamson pulled his right hamstring Jan. 2 and hasn't played since, and Brandon Ingram didn't return until Jan. 25 after a two-month absence for a bruised left big toe.
Now, the Pelicans are seventh in the middle of the mess that is the West standings. New Orleans is 1½ games away from the fourth seed but also 1½ games away from 12th place. Williamson won't be available to help any time soon. On Sunday, Pelicans executive vice president of basketball operations David Griffin announced Williamson aggravated the right hamstring injury that has caused him to miss 20 consecutive games.
Griffin said Williamson is likely to miss "multiple weeks," but the team will reevaluate him after the All-Star break when they get more imaging done. So far this season, the Pelicans are 17-12 with Williamson in the lineup and 12-16 without him.
Luckily for New Orleans, things are about to get easier. According to the BPI, the Pelicans have the league's easiest remaining schedule the rest of the way.
Ingram has 29.0 points, 6.8 assists and 5.0 rebounds per game and is shooting 54.3% over his past four games. Ingram returning to form allows the Pelicans to take some of the offensive pressure off McCollum, who shouldered much of it with Ingram and Williamson out for most of January.
The Pelicans navigated a similar situation a season ago, as Williamson missed all of the 2021-22 season because of a broken right foot. They traded for McCollum at the 2022 trade deadline, and he helped to lead them to the play-in tournament and eventually the No. 8 seed in the playoffs.
Last year's team faced much tougher circumstances than this year's group. Willie Green's first year as Pelicans coach saw his team start 3-16 before making that postseason push.
"We learn more as this team grows together. This team is resilient," Green said following a win against the Atlanta Hawks on Feb. 7. "Even during the losses, coming into the gym you wouldn't know we lost the night before. ...
"We have the ability to handle adversity, we stay connected, we don't point fingers and we grind it out."