NBA's luxury tax might force the Orlando Magic to part ways with Hedo Turkoglu and Marcin Gortat

[mattlanta]

NBA's luxury tax might force the Orlando Magic to part ways with Hedo Turkoglu and Marcin Gortat

"Fittingly, the Magic close their regular season Wednesday on April 15 — tax day.

The Sentinel has learned that the Magic most certainly will have to make some salary-cutting moves after the season in order to keep small forward Hedo Turkoglu and center Marcin Gortat and avoid paying the NBA's punitive luxury tax next season.

Their payroll is projected at roughly $70 million for 2009-10 and the league's tax threshold is expected to drop from $71 million to about $68 million, meaning the Magic would have do to something they vowed never to do.

"We'd have to pay the tax, yes," General Manager Otis Smith said. "But that's today."

Smith said he doesn't believe the Magic will have to go into the tax to contend for a championship — and doesn't expect ownership will have to pay it next season.

"I don't see that changing," Smith said. "We have a great owner [ Rich DeVos]. I have not gone to ownership and said we need to be in the tax. I don't think it's necessary. You have to be creative."

Being creative means trading players and reducing payroll, crucial in a smaller market such as Orlando.

The New York Knicks, the NBA's biggest spenders, head into Amway Arena tonight with roughly a $92 million payroll and a 30-49 record. They are about $21 million over the league's luxury tax threshold.

Not much bang — i.e., winning basketball — for your buck.

The Magic have a payroll estimated at $69 million this season — and a 58-20 record to show for it.

But to continue on that fiscally responsible plan, the Magic will have to make some hard decisions, considering they want to re-sign Turkoglu and Gortat.

Turkoglu can opt out of his contract this summer, giving up the $7.3 million owed him by the Magic next season."

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[DrReality]

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