NBA Trade Deadline 2012: Salary-Cap Issues Will Impact Moves by Lakers, Magic

The Los Angeles Lakers and Orlando Magic are both looking to be players at the trade deadline, but in both cases, salary-cap issues are making it hard for them to make moves. The new collective bargaining agreement has a new set of issues. 

Previously, a team that was over the luxury tax would pay one dollar in penalties for every dollar spent above the cap. Starting in 2012-13, the rules will be much more stringent and the taxes much more heavy.

A team pays escalating taxes for every $5 million they are over the cap. That penalty goes up if you are a repeat offender, which the Lakers are. 

Currently, the Lakers, for example, are $29 million over the cap. That would cost them $103.25 million in taxes next year. If they were to use that trade exception they are sitting on—which is about $9 million—it would cost the team the $9 million, but it would also cost them $4.25 for every dollar that they spend in luxury taxes. 

In other words, it would cost them $38.25 million, which, combined with the $103.25 million they already spent, would mean they are donating $141.5 million to the rest of the league. Now you might say they can afford it, but that's a lot of other people's money you're spending.

For the Lakers, the limitation is that they simply can't afford to take on more salary. Even with the revenue that the Lakers have, they are going to feel that kind of luxury tax.

The other side of the coin is (along with the stringent taxes teams are leery of taking on) overpaid players, which is why the Orlando Magic are having trouble. 

The Magic have players they would like to move to acquire a player to complement Howard, but the issue is that no one wants to take on their contracts. Hedo Turkoglu, Jameer Nelson and Chris Duhon make more than $22 million altogether and have combined for 3.7 win shares. That translates to 6.5 wins over an 82-game season. 

If all your salary produces at the same level, that translates to a team that wins 17 games in an 82-game season. 

In other words, those are severely overpaid players, but those are the only assets the Magic have which are capable of returning a salary that could complement Dwight Howard. 

Because of the new CBA, teams are just not looking to add bad contracts even if it means adding a good contract like Ryan Anderson. What complicates matters even more is that the Magic aren't looking to move Anderson's contract. 

Whether it's the Lakers' reluctance to take on salary or the Magic being shut out of trades because of bad contracts, the new CBA is having its impact on this year's deadline deals and may be the biggest—albeit least-talked-about—reason there haven't been any moves made yet.