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Another Luxury Tax Hit, Linas Kleiza Leaves Denver for Greece

8/10/2009 4:51 PM ET By Tim Povtak

    • Tim Povtak
    • Tim Povtak is a Senior NBA Writer for FanHouse
It's not that the Denver Nuggets didn't like Linas Kleiza -- George Karl liked him a lot -- but not enough to pay him twice. Not for a backup forward, no matter how intriguing his skills.

It's basic economics. The luxury tax struck again.

Kleiza, 24, just agreed to a two-year, $12.2 million deal with the Greek team Olympiakos, according to agent Bill Duffy. It was first reported on Yahoo!.

Kleiza wasn't getting much attention from other NBA teams because of his restricted free-agent status, with most believing the Nuggets would match any reasonable offer, so he turned his attention overseas.

Kleiza already was in Europe with the Lithuania National team, and playing in Greece for $6 million a year didn't take much thought. It was almost double what the Nuggets wanted to play.

Olympiakos has been pursuing NBA players more aggressively than any other European team. They already have Josh Childress, Andreas Glyniadakos and Von Wafer. They made an offer to Allen Iverson, which was rejected, opening the door for Kleiza. He also received an opt-out option, much like Childress had, after the first season.

He can look again next summer for an NBA deal, but the Nuggets would still have his rights as a restricted free agent.

Because the Nuggets already are at the luxury tax threshold, they would have been paying him double to match the Greek offer. A $6 million salary would have cost them $12 million, which is much more than Kleiza was worth.

Kleiza played an important role in the Nuggets' playoff success this year -- they lost to the Lakers, 4-2 in the Western Conference finals -- but he certainly wasn't worth the $12 million price tag. In one victory over the Lakers, he had 16 points in 21 minutes. In the other, he had 10 points in 13 minutes.

He played all 82 games during the regular season, averaging 22.2 minutes, 9.9 points and 4 rebounds, playing as a backup at both small forward behind Carmelo Anthony and at power forward behind Kenyon Martin.

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