The Hawks have paid the luxury tax just twice ever. A decade ago, they paid just $666,199 – the fourth-smallest tax bill in NBA history. They also paid the tax in 2003, the first year it was assessed. Back then, teams didn't know whether they'd owe luxury tax until after the season.
With time to prepare for a predetermined luxury-tax line, Atlanta probably won't make a rare foray into the tax this season.
By trading Maurice Harkless' $4,564,980 expiring contract – and draft considerations, of course – to the Thunder for Vit Krejci, the Hawks go from $1,214,759 over the luxury tax line to $1,786,703 under the tax line, as shown on our updated cap sheets.
Atlanta hasn't completely dodged the tax yet. Clint Capela and Dejounte Murray have $3.5 million worth of potential incentives not currently counting toward team salary.
Capela's incentives:
- $1 million for conference finals plus 2,000 minutes (achieved in 2021)
- $500,000 for 30% defensive rebounding rate plus 2,000 minutes (achieved in 2021)
- $500,000 for 65% on free throws (career high: 64% in 2019, 47% last season)
- $500,000 for 58 true shooting percentage (career high: 53 last season)
- $500,000 for 125 3-pointers made (career high: 96 last season)
- $500,000 for All-Defense first or second team (achieved in 2018)
If Capela and Murray are trending toward triggering too many incentives, the Hawks could make another salary-shedding trade. Or just pay the tax.
The cost of this payroll-trimming deal: A 2029 second-rounder and reducing protections on a 2025 second-rounder from top-55 protected to top-40 protected.*
*The pick was originally sent in the 2020 Danilo Gallinari sign-and-trade.
Oklahoma City uses the $4,945,620 Chet Holmgren disabled-player exception to acquire Harkless. Just another way to squeeze more draft picks from other teams.
Harkless might not be long for Oklahoma City. The rebuilding Thunder don't need the 29-year-old on the floor. They could keep him and his expiring contract to facilitate another trade during the season. But given Oklahoma City's roster crunch, waiving or buying out Harkless appears more likely.
The Thunder have 17 players – two more than the regular-season standard-contract roster limit – with guaranteed salaries.*
*Not counting Ty Jerome, who isn't at training camp and appears on his way out of Oklahoma City.
The No. 37 pick in 2020, Krejci was far from a lock to make the Thunder's regular-season roster after a rough rookie year last season. He has a better chance in Atlanta, where there are just 12 players with guaranteed salaries (plus Tyrese Martin with a $450,000 guarantee).
Krejci has half his $1,563,518 salary guaranteed until the league-wide guarantee date of Jan. 10. If the Hawks waive him today, Krejci would get $781,759. If they waive him Jan. 7, Krejci would get $781,759. So, Atlanta could keep into the regular season.
Keeping Krejci would also allow the Hawks to flip him and completely remove his salary from the books. Could be useful if Capela and Murray approach their bonuses. If Atlanta waives Krejci, the money paid to him would count toward the luxury tax.
If Krejci beats the odds and turns into a keeper, he has two additional unguaranteed seasons on his contract (including a 2024 team option). So, the Hawks have the upside of team control if taking a flier.
-Dan Feldman