If a team is over the mark by $5 million or less, it will be charged $1.50 for every dollar it exceeds.
The way the tax system works is the NBA penalizes a team when its payroll rises above $132 million for the 2019-20 season. 'They're done with Capela,' one Western Conference executive told CNBC, requesting that his name remain anonymous.Īccording to league sources who spoke to CNBC, Rockets owner Tilman Fertitta is seeking to shed additional salary off the team's nearly $140 million payroll hoping to avoid a luxury tax. ESPN has already reported one of the first big names floating around in trade discussions, as the Houston Rockets are flirting with the idea of trading center Clint Capela, who signed a five-year, $90 million deal with the team last season.
