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Larry Coon: Brooklyn Nets to pay $12.8 million in luxury taxes

Brooklyn Nets/Adam Pantozzi

Mikhail Prokhorov will have to pay the NBA $12.8 million in luxury taxes, reports Larry Coon, the guru of the CBA. Specifically, writes Coon, Brooklyn with a payroll of $83,110,234, with pay out $12,803,234 in taxes, third in the league behind the Lakers' $29.6 million and the Heat at $13.2 million. The Knicks will owe nearly $9 million. The Bulls and Celtics will also pay luxury taxes this year.

Coon notes the league uses the team salary as of each team’s last regular season game in its computations. Since the trade deadline is passed, and all salaries are guaranteed, teams can no longer lower their tab. They can still raise it by signing 10-day and rest-of-season contracts. The Nets intend to add a player near the end of the season. He would be paid around $50,000 for the final two weeks.

This is the last year for the dollar-for-dollar luxury tax under the new collective bargaining agreement. Starting in 2013-14, the more over the tax line a team is, the higher the tax rate. Also, if a team is over the tax line four out of five consecutive years, it will pay significant fines on top of the tax. By some estimates, if the Nets continue spending at the same levels they've been spending, they'll have to pay as much as $100 million in luxury taxes over the next four years ... and the Nets' four biggest contracts all extend through 2015-16.