Lakers' Decision to Let Go of Alex Caruso Wasn't About Luxury Tax – It Was a Valuation Error

The Data Behind the Lakers’ Misstep

When the Los Angeles Lakers let Alex Caruso walk in 2021, fans were told it was about financial flexibility. But as BR’s Eric Pincus revealed, this was never about luxury tax thresholds—it was a fundamental misjudgment of player value.

The Contract Paradox

The numbers tell a damning story:

• $37M spent on Talen Horton-Tucker (THT)
• $5M on Kendrick Nunn
• Later acquisitions like Patrick Beverley
  All while letting Caruso—a proven defensive anchor—sign with Chicago for just $36M/4 years.

What Advanced Metrics Said

My tracking data showed Caruso’s impact:

The analytics community knew his worth. As Pincus bluntly stated: “They didn’t see him as valuable… This reflects terrible decision-making by the same group that thought Muscala was better than Zubac.”

The Bigger Picture

This isn’t just hindsight. Teams like Miami and Boston consistently outperform because they:

1. Trust data over reputation
2. Value role players correctly
3. Avoid emotional attachments to ‘big names’

The Lakers’ front office failed all three tests—and their recent playoff absence proves it. Sometimes, the spreadsheet doesn’t lie.