How DeRozan's addition will affect the Kings' NBA luxury tax bill was reported by NBC Sports Bay Area.
The Kings reportedly acquired DeMar DeRozan in a three-team sign-and-trade, but where does that leave the Kings in terms of the NBA luxury tax?
DeRozan will sign a three-year, $76 million contract with the Kings, TNT's Chris Haynes reported Saturday. ESPN's Adrian Wojnarowski projects the deal to be three years, $74 million. The deal would put Sacramento closer to the $170.8 million luxury tax threshold for the 2024-25 NBA season.
The Kings are currently $5.1 million under the luxury tax threshold and could avoid that threshold by signing two veteran minimum-salary players, ESPN's Bobby Marks reported Saturday.
Sacramento's offseason with DeMar DeRozan
The Kings are $5.1 million under the tax threshold and could avoid the threshold by signing two veteran minimum-salary players. pic.twitter.com/7Qd1mnYO0g
— Bobby Marks (@BobbyMarks42) July 7, 2024
Including bonuses for DeRozan, Domantas Sabonis and Trey Lyles (which Marks said are unlikely to be received by any of them), Sacramento is projected to have a total salary of $168.9 million in 2024-25, which would still put it under the luxury tax threshold.
After a busy offseason that saw the addition of DeRozan and the reported retention of Malik Monk, the Kings still have a highly valuable asset in the tax-free mid-level exception that could be attractive to potential free agents still on the market, but if Sacramento decides to use it, it will be set at the first apron of $178.1 million.
The NBA's new collective bargaining agreement penalizes teams that repeatedly hit the luxury tax, so the Kings will likely need an attractive player to force them to stay out of the luxury tax zone after the reported DeRozan acquisition.
For now, general manager Monte McNair and the Kings front office can take a breather and bask in the warm reception Sacramento's move to acquire DeRozan received from 916 fans.
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