fam3381 wrote:power4wardjinx wrote:fam3381 wrote:
So you're assuming Redd misses all of next season? I assume you took 80% x $17.04 million = $13.6 million. We don't get anything for this year obviously, and the first six games of next year also wouldn't be covered (he's missing the final 35 this year).
My understanding is the payments stop as soon as Redd comes back, though if he then misses more games because of the knee then they're covered at the same rate. So my assumption is we probably wouldn't get half of the $13.6 million figure unless Redd's rehab runs into major complications. Maybe I'm missing something?
Your assumption is correct. Assuming the Bucks get half of it by shelving him, they've covered the luxury tax problem.
So are you now agreeing that we'd be lucky to get half the $14 million number you originally suggested?
power4wardjinx wrote:Also, luxury isn't lump sum payment, is it? No. I presented it that the way to simplify. October and November they make luxury tax payments, November they collect some insurance money for Redd, and so it goes. Meanwhile, Hammond could make a trade July- February 2010 that could alleviate the situation. The key is to balance it all by making sure that Redd stays shelved long enough to receive a good benefit.
The luxury tax is assessed at the end of the season, so if we are over it in November we're not paying anything. We wouldn't get a bill for it until April 2010 if my understanding of it is correct, and I assume it is a lump sum payment.
Frank, I put out $14 insurance/$90 salary to simplify things, and said I didn't know what the payment schedule is. Yeah, it would be great to get back half of Redd's 80%, and that's $6.8 mill in the senator's pockets.
Luxury tax: if you are right about the payment schedule -- no wonder so many teams are over!!! Teams can run the debt and just shed it in February. Hell, the way to do it would be to bill monthly or quarterly, which is great news for the Bucks.
So are the teams billed for the months they are over but not the months when, let's say a trade is made or something, that they are under?
The Bucks can then go over the lux tax threshold to sign Sessions and CV, not pay a dime in tax for it, pocket Redd's insurance to help cover payroll, then make a trade NEXT february to get under, and then ... would they then be billed in 2011 for ending the 2010 fiscal year (June 30) for being over?
That's it, right? If you're over on June 30 you get billed. The new fiscal year starts July 1. In essence, the Bucks can collect insurance dough on Redd (a la Washington Wizards and Gilbert Arenas), be over the cap, pocket all millions of dough, and not have to worry about the tax bill for a year and a half, if not two years.
So, in essence then, the situation is that, as I said, payroll impact is $76 mill-plus next season, and the main issue is whether or not the Bucks can make enough at the gate to make it worth doing. I think with a healthy Bogut, this team as is will contend for home court next year. Redd can come off the bench when he's ready, say, in February or March.
There's no crisis here. Just float the luxury tax with the insurance payments. Simple. And we keep CV and Sessions.
