Many of us have our doubts. We ask ourselves whether it truly can be done. Can the Miami Heat realistically build a championship caliber roster while operating within the confines of the salary cap? It doesn’t seem possible.
We point to the evidence. The four semi-finalists in the 2010 NBA Playoffs have team salaries as follows:
1. Los Angeles Lakers: $91,341,066
2. Boston Celtics: $84,069,655
3. Orlando Magic: $80,449,669
4. Phoenix Suns: $74,738,817
Each is significantly to ridiculously more than the Heat will be able to spend. But for the sake of argument, let’s analyze these numbers for a moment.
Yes, the Lakers, Celtics and Magic made a conscious decision to (over)spend. But they’ve realized some nice returns on their investments. The organizations are wildly profitable, producing an average operating income of more than $20 million during the 2008/09 season. And they’re perennial powerhouses.
I take more of an interest in the Phoenix number. If you recall, the Suns completed a blockbuster trade in July that sent Shaquille O’Neal to the Cavaliers in exchange for Ben Wallace, Sasha Pavolic and $500,000. For the Suns, the trade was a straight salary dump. Wallace was subsequently bought out for $10 million from a contract that would have paid him $14 million. Pavolic, whose $5.0 million contract was only partially guaranteed for $1.25 million, was waived. With the moves, Phoenix saved $18.0 million in salaries and luxury tax payments.
The maneuvering also meant that $11,250,000 was spent on two players that didn’t make the regular season roster. So the true team salary, for comparative purposes, is a relatively paltry $63,488,817.
At just $63 million, the Suns put a big scare into the defending champions. The Heat, although constrained by the $56.1 million salary cap, will likely spend on the order of $60 million after utilizing its available exceptions. So all of a sudden, creating a winner seems possible. Difficult, but possible.
But operating with such limited funds does have its drawbacks. What it means is that Pat Riley will need to allocate the bulk of Micky’s money on the starting five. Therein lies the problem. The potential lack of depth becomes an overriding concern. Read more…