re: NBA looking to change Luxury Tax

quote:

---

teams like the Golden State, the two LA and NY teams, they don't care about the tax costs. It makes no difference to them if they have to pay $10M or $30M.
If they make the lower tier less of a penalty then those teams are going to live in them and it will make it easier for them to build winning teams. This seems like something that is going to help the small market team, but i think it just helps the big market teams more than anything. This just sounds like a way for the big market teams to not be penalized as much.

---

There are many more teams right up against the tax (without going over) than teams just a little bit above the tax. That goes back to my point about teams not wanting to miss out on getting that big check for not being a tax team.

For the 2022 season, there were 9 teams in the tax. The lowest, Brooklyn, was over $7M above the tax line. Denver was next at over $8M. The rest were much higher.

In comparison, there were 11 teams within $5M of the luxury tax line without going over.

A change in the tiers would help small markets a lot more than it would hurt. It would also be nice if you could dip into the luxury tax (say within $5M) and still get to collect from the luxury tax pot, minus however much you are over the line.