Painful Tax Bills

Mr. Sun · Post #1 » by **Mr. Sun** » Thu Jul 8, 2010 4:32 am

Lakers: $21,430,778

Mavs: $17.5M

Cleveland $15.4M

Boston $14.9M

Orlando $11M

Nando88 · Post #2 » by **Nando88** » Thu Jul 8, 2010 4:38 am

at least that 21 mil for the lakers is worth it

TheJohnWallShow · Post #3 » by **TheJohnWallShow** » Thu Jul 8, 2010 12:33 pm

Post #4 » by **Miklo** » Thu Jul 8, 2010 1:26 pm

Wait so how is that calculated - is the 21 million for example, them being 10.5 over the cap and having to match it dollar for dollar?

I think it's worth it to some extent for all those teams - I mean 4 of them were basically the top 4 teams. Of course I'd have to know about their revenue to actually know whether it's worth it though.

Sun Scorched · Post #5 » by **Sun Scorched** » Thu Jul 8, 2010 2:18 pm

That's how much they are over the luxury tax. They have to pay that amount to the league FO.

Additionally, that total amount of all luxury tax revenue gets split up (1/30) between all teams that were below the salary cap.

Post #6 » by **Miklo** » Thu Jul 8, 2010 2:28 pm

Sun Scorched wrote:That's how much they are over the luxury tax. They have to pay that amount to the league FO.

Additionally, that total amount of all luxury tax revenue gets split up (1/30) between all teams that were below the salary cap.

Oh yeah, I forgot about the revenue sharing for luxury tax. But the number is double how much over the cap the team is, since they have to match dollar for dollar, right?

Sun Scorched · Post #7 » by **Sun Scorched** » Thu Jul 8, 2010 2:52 pm

Miklo wrote:
Sun Scorched wrote:That's how much they are over the luxury tax. They have to pay that amount to the league FO.

Additionally, that total amount of all luxury tax revenue gets split up (1/30) between all teams that were below the salary cap.

Oh yeah, I forgot about the revenue sharing for luxury tax. But the number is double how much over the cap the team is, since they have to match dollar for dollar, right?

That number is what the teams are currently over the cap.

You need to double that to see what the teams "effective" salary is over the soft cap. Essentially, if LA is $21m over the cap, they owe an additional $21m to the league. So combined they are paying $42m because of the doubling of that number.

Miklo, if you're looking at Shamsports (which is where I go for the numbers) it looks as though he's already updated the number to reflect next year's salaries and the corresponding cap holds.

I was assuming Mr. Sun was referring to the tax that those teams are liable for due to last season's salary on book.

DRK · Post #8 » by **DRK** » Thu Jul 8, 2010 3:10 pm

Yer. The tax rate is at 100%. i.e dollar for dollar.

The amount of money these teams are over the cap is crazy. You kinda wonder why there even IS a salary cap, when teams go over it this far.

Post #9 » by **KJ7** » Thu Jul 8, 2010 11:29 pm

Orlando could be a good team to trade with now ... always thought Jameer Nelson would look good here and they recently got Duhon as well. If we could get rid of LB in the process I'd love to see something go down there.

Don't have the time at the moment but something like LB + TPE for Pietrus/Gortat/Bass + Nelson would give them some relief and give us 2 players who would fit our system. I would actually ask in that order. Dragic might get squeezed a bit if we get 2 back-court players but would just move to back-up SG otherwise (I actually think he's a better combo-guard rather then PG).