johnnyvann840 wrote:Also agree with the point CF was trying to make about the line between tax payers and non tax payers never being insignificant simply because non tax payers are always at least $6 million up before they even pay dime one due to the sharing of the tax pool among them. So, there really is an arbitrary line. At a minimum it is a $6 million difference even if a team is only a few hundred grand over the tax line for whatever reason.. 13th man, 14th man or signing a star to a large deal.
You and CF would both have a great point.... if what you're saying were true. But it's not.
CBA FAQ wrote:
19. Where does the escrow and luxury tax money go?
- Up to 50% of the tax money may be given to non-taxpaying teams. Note that there is no requirement that any of the tax money be distributed to teams in this manner.
- Any tax money not distributed to teams will be used for "league purposes." In other words, at least 50% of the tax revenue will be used for league purposes each season.
- "League purposes" essentially means for any purpose the league decides, including distributing the money back to teams. Currently 50% of the tax revenue is used as a funding source for the revenue sharing program, and the remaining 50% is distributed to non-taxpaying teams in equal shares.
Since half of the luxury tax penalty money is reallocated to the teams that finished out of the tax, those non-tax clubs are in line for payouts of approximately $3.1MM, per Marks. (This is for 2018-19)
The Heat, Wizards, and Rockets made in-season transactions to get out of tax territory and will now receive $3.1MM from the tax pool.
So the free-spending, win first-profit second Heat owner (Micky Arison) dumped salary to avoid the Luxury Tax??
And the Rockets owner (Tilman Fertitta) and his win-at-all-costs GM (Morey) dumped salary to avoid the Luxury Tax?? In a year when they were without any doubt contenders for a Championship??
I am just downright shocked and appalled!!!!!
That $3.1 million is really a difference-maker to a team with a $123,435,194 (HOU) or $123,520,833 (MIA) payroll. A 2.5% rebate.
What's really funny is that the Heat literaly gave away Tyler Johnson and Wayne Ellington for free, PLUS paid the Suns $1.8 million just to get under the tax.
2/6/19 — Traded Tyler Johnson, Wayne Ellington and $1,800,000 to the Phoenix Suns for Ryan Anderson.
Houston paid the Bulls just over $2.6 million to get rid of MCW and Melo's contract.
1/7/18 — Traded Michael Carter Williams and $1,065,696 to the Chicago Bulls for a protected 2020 second-rounder.
1/22/19 — Traded Carmelo Anthony, the rights to Jon Diebler (2011-51st) and $1,566,570 to the Chicago Bulls for the rights to Tadija Dragicevic (2008-53rd).
Obviously, even big-market and contending teams are smart enough to stay out of LT territory if it's at all possible.
But for some reason, people act like Reinsdorf is the only owner out there who watches the payroll. People rip on him for doing things that other owners do as well - even owners who are 2 or 3 (or 4) times richer than him.
Finally, the spend-money-at-will Lakers haven't paid the LT in the last 6 years, I guess they got cheap all of a sudden? NO, they're smart enough not to break the bank when they have absolutely no chance of winning.
I don't even care to defend JR, I'm fairly ambivalent about it because he's easily not the best owner in the league, and easily not the worst. I don't post much on any Bulls sites, I generally just read.
But when I do join the conversation, I want to be honest and based in fact. In this case, you have to compare him HONESTLY with other owners... but I have no doubt someone will come up with a reason why Arison and Fertitta have some reason for dumping salary to get under the tax that doesn't apply to Reinsdorf.
That's just disingenuous, but as LC pointed out earlier, some people seem to have an axe to grind. Which is their right.