Although the Bulls 2013-14 season ended in a surprising first round exit to the up and coming Washington Wizards, the season was still a success. And no, not because they fought through adversity without Rose and Deng blah blah blah but simply because they have officially avoided being a Tax team.
The Bulls had 1.2 million dollars in performances bonuses to worry about and with only $791,165 to spare; it looked like that could be a problem.
Joakim Noah made First Team All-NBA. Along with more hardware Noah will also receive a $500,000 bonus for being selected due to incentives included in his contract. Fortunately for the Bulls, Noah didn’t receive a bonus for making the All NBA-Defensives First Team (leading vote-getter). So First Team All-NBA ended up being the only bonus the Bulls are on the hook for. Here were the others.
- $250,000 if Noah won a championship
- $500,000 if Taj Gibson made All-Defensive first team
- $250,000 if Taj Gibson made All-Defensives second team
On Bulls Zone we’ve harped on the benefits of avoiding the Luxury Tax. Here is way:
The Bulls were a tax team last season. Now if a team is a tax team in two consecutive seasons they’re hit with a pretty hefty “Repeaters Tax” penalty. By avoiding it this year, it allows them to go deeper in tax next season. This could prove to be very valuable if Melo finds his way to Chicago.
Also, non-tax teams get the benefit of receiving a luxury tax payment. Do I need to explain why more money is better than less money?
So because these bonuses didn’t take effect they won’t hold cap space for the upcoming season.
For those of you who are all in on Melo, as the Bulls front office is, this is great news and adds to the possibility of that dream becoming reality.
Will is co host of Bulls Zone podcast. Follow him on Twitter @BullsZoneWill