How reported DeRozan addition affects Kings’ NBA luxury-tax situation originally appeared on NBC Sports Bay Area
After the Kings reportedly acquired DeMar DeRozan in a three-team sign-and-trade, where exactly does that leave Sacramento when it comes to the NBA’s luxury tax?
DeRozan reportedly signed a three-year, $76 million contract with the Kings, TNT’s Chris Haynes reported Saturday — ESPN’s Adrian Wojnarowski has the figures at three years $74 million — as part of the deal which pushes Sacramento near the $170.8 million luxury-tax threshold for the 2024-25 NBA season.
The Kings currently are $5.1 million below the luxury tax, and will avoid the threshold if they sign two veteran-minumum players, ESPN’s Bobby Marks reported Saturday.
Sacramento Offseason with DeMar DeRozan
The Kings are $5.1M below the tax and will avoid the threshold once they sign 2 veteran minimum players. pic.twitter.com/7Qd1mnYO0g
— Bobby Marks (@BobbyMarks42) July 7, 2024
Including potential bonuses for DeRozan, Domantas Sabonis and Trey Lyles — which Marks notes would be unlikely for the trio of players to hit — Sacramento still falls beneath the luxury-tax threshold at a projected 2024-25 salary of 168.9 million.
After a busy offseason that included the reported addition of DeRozan and retaining Malik Monk, the Kings still have an extremely valuable asset in the non-tax payer mid-level exception, which could prove enticing to any potential free agents still on the market.
However, should Sacramento decide to use the mid-level exception, the Kings would be hard-capped at the $178.1 million first apron.
Given the way teams that repeatedly are in the luxury tax are punished by the NBA’s new collective bargaining agreement, it likely would take an enticing player to force Sacramento to forego its clear path to remaining under the tax even after its reported aqcuisition of DeRozan.
For now, general manager Monte McNair and the Kings’ front office can take a deep breath and bask in the aftermath of the warm reception Sacramento’s move for DeRozan received from fans in the 916.
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