HARVARD ECONOMICS: Jeremy Lin launched himself from the Ivy League into the NBA spotlight with dazzling play at the Garden last season, but the price for the luxury-tax-paying Knicks to retain him — pushing $60 million in 2014-15 alone — could be too steep.
LAS VEGAS — Is Jeremy Lin worth $58.3 million in 2014-15?
If the Knicks were to match the Rockets’ poison-pill offer sheet, under the new CBA’s vicious luxury-tax penalties, owner James Dolan could pay that amount for Lin just for the 2014-15 season.
That astronomical bill is why the Knicks sought a cheaper point-guard solution to pair with Jason Kidd. They were finalizing a sign-and-trade with Portland yesterday that would make Raymond Felton a Knick again in a three-year deal that is estimated at close to
$10 million with a player option for a fourth year.
A source told The Post Saturday night that after the Felton deal, the Knicks will not match Lin’s back-loaded three-year, $25 million offer sheet from Houston.
Lin’s potential departure after lighting up the Garden in February and March plus the news of Kidd’s DWI arrest yesterday in the Hamptons kept the Knicks in a familiar role as the NBA’s biggest soap opera.
It was doubtful the arrest would have any impact on the decision whether to retain Lin.
At the Las Vegas summer league yesterday, Knicks coach Mike Woodson dodged the media and refused to discuss the latest developments.
“I can’t talk today,’’ Woodson said. “I can’t talk about it.”
OPINION: KIDD’S ARREST DISGRACEFUL
Knicks general manager Glen Grunwald never showed up to the arena and was said to be back in the hotel crunching numbers. The Knicks have until 11:59 tomorrow night to match Lin’s offer sheet. They could not make a move on Lin until the Felton deal became official.
Just four days ago, Woodson gushed that the Knicks would “absolutely’’ match the Rockets’ offer sheet and said Lin would be the starter at point guard to open training camp.
But that was before Lin secretly flew to Las Vegas to change the offer sheet and turn a four-year, $28 million deal with $19 million guaranteed into a fully guaranteed three-year, $25 million contract — with the final year a balloon payment of $14.9 million that Carmelo Anthony called “ridiculous’’ yesterday.
How ridiculous? The Knicks are expected to be over the luxury-tax threshold for three straight years by 2014-15, and repeat taxpayers will be subject to the harshest of luxury-tax penalties.
If all of Lin’s $14.9 million salary comes in over the threshold, the first $5 million will be taxed at a 2.5-to-1 ratio. The next $5 million will be taxed at a 2.75-to-1 ratio. The final $4.9 million is taxed a 3.5-to-1 ratio.
The math shows the tax alone on Lin’s final year would be $43.4 million, meaning the entire bill that season could be $58.3 million.
Dolan actually might have matched the offer had it been done above board. But as reported by The Post, the Knicks were furious Lin renegotiated the contract after they had told him they would match it, knowing how deadly it would be financially to the organization’s coffers because of the tax.
Dolan is all about loyalty and the revamped offer sheet rubbed him the wrong way.
As long as Kidd isn’t thrown in jail, the Knicks are set at point guard this season with a three-headed monster of Felton — who desperately wanted to return to the Garden after working great with Amar’e Stoudemire in 2010-11 — Kidd and Spanish leaguer Pablo Prigioni.
marc.berman@nypost.com