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re: NBA looking to change Luxury Tax
Posted on 2/27/23 at 12:00 pm to TeddyPadillac
Posted on 2/27/23 at 12:00 pm to TeddyPadillac
quote:
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.
Lakers are $17 million over the tax line this year
Clippers are $40 million over
Warriors are $47 million over
Those teams are not going to live in the "lower tiers". Currently the 1st tier is $0-$4.99 million. Raise that first tier to say $10 million and maybe lower the rate from 1.5x to 1x and you'll have teams like the Pels and Grizzlies feeling a lot more comfortable going into it, and the big market teams will still be well above it unless it's a year where they are transitioning from out of the tax to into the tax.
This post was edited on 2/27/23 at 12:02 pm
Posted on 2/27/23 at 12:05 pm to TigerinATL
quote:It would help, but not sure how much.
Currently the 1st tier is $0-$4.99 million. Raise that first tier to say $10 million and maybe lower the rate from 1.5x to 1.25x and you'll have teams like the Pels and Grizzlies feeling a lot more comfortable going into it
Say, you're at $4mil over, 1.5x vs 1.25x is a difference of $1mil total. So yes, it IS a difference. But as someone pointed out, the big issue is missing out on the revenue share going back to you for not going into the tax, which is something like $17 mil a year lately.
So, rough match obviously, you're looking at "losing" $23mil total, but under your proposal, you lose $22mil. So a savings and a difference, no question. But enough to entice teams like the Pels and Grizzlies to dip into the tax? Not sure.
Don't get me wrong, I get where you gotta save at some point. Like the Warriors a few years ago, they added someone like Oubre and the total cost was something like $74mil for 1 season of Oubre. And also if you're a losing team not going anywhere, yea you're just wasting money by going into the tax. But generally speaking, if you're not going to spend up a little on your team, then why do you own the team?
This post was edited on 2/27/23 at 12:06 pm
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