Explain this trade to a guy that hasn't paid attention to the NBA since Jordan. My phone seems to think I need this information.
I think you have understand the money. I don't claim to understand NBA finance but have read this trade moves the Mavs from being millions over the luxury tax to now being under it, due in part to AD waiving his trade bonus. The luxury tax can cost a team over $150m per season, depending on payroll, and is only going up each year. The Adelsons bought control of the team about one year ago, paying about $2.5Bln, are now facing a $350m fully guaranteed commitment to one player and decided against that. People will say they could have negotiated better and gotten more out of the deal, and I've no idea about that, but I'm not sure how many teams are in a position to take on this player right now. For me, from the Lakers' perspective, it’s not about what Luka is worth but what they would give up to get him now rather than waiting six months or eighteen depending on circumstances. It seems to me success in the modern NBA comes from great management, some luck, and above all having an owner willing to spend crazy money to take a shot. As more teams are sold to financial buyers and investment funds, we could possibly see more of this where the investors do some math and decide they don't want to fund a plan that requires a massive guaranteed commitment to one player and hundreds of millions in luxury tax.