The harsh punishment the NBA enforces for overspending incentivizes teams to find bargains and spend with care. Some teams do. Some teams don’t. But pretty much all of them overspend in some cases and underspend in others.
With the NBA salary cap set at $58.044 million for the 2012-2013 season and the tax level at $70.307 million, most NBA teams cannot afford to spend excessively. Any team that tops that tax level must pay one dollar of luxury tax for every dollar it exceeds $70.307 million.
The Miami Heat have taken some wise steps to avoid the luxury tax, while also making some not-so-wise decisions.
The following is my list of Miami’s most overpaid and underpaid players on the roster.
(All salary numbers and stats credit to www.basketballreference.com)