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The New Orleans Pelicans appear to be over the NBA’s luxury tax line by about $530,000 after signing Kylor Kelley to a 10-day contract, according to Eric Pincus of Substack.

However, that overage is expected to be temporary, and the franchise is unlikely to pay the tax for the first time in its history.

Pincus explains that a $700,000 bonus for Dejounte Murray is currently counted toward the team’s salary cap because it was classified as “likely” before the season began.

But since Murray has only played in 31 games, he won’t meet the conditions for that bonus.

Once the season concludes and the bonus is officially removed from the books, the Pelicans’ total salary will fall below the tax threshold by roughly $170,000 – keeping ownership out of luxury tax territory.

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