Scoot McGroot wrote:They could just make you ineligible to receive luxury tax distribution payments and revenue sharing payments, just as if you were over the luxury tax.
For essentially all teams this would be more than enough to persuade them to get above the floor.
"They could just make you ineligible to receive luxury tax distribution payments and revenue sharing payments, just as if you were over the luxury tax. "
1
No, they cannot. The rules are set and do not allow this.
2 The rules will remain as is, until there's a new CBA.
3 The league's "penalty" is already specified - you pay the difference. That's all.
4 An "added penalty" for those who want to have one, is that with a lower payroll, a team
is likely to be less competitive and draw fewer fans.
5 Lower attendance is its own financial downside for a team; plus, failing to adequately perform in your market can impact eligibility for revenue sharing.
6 But none of that is tied to spending, only to revenue generated. So if a team can draw fans while spending far below the floor, they are free to do so all they want.
"For essentially all teams this would be more than enough to persuade them to get above the floor."
Persuade? No one cares. They'll end up paying the minimum in salaries, one way or the other, which is what the CBA requires. Not sure why some want to imagine that there are further penalties - or that anyone would really care - for a team being below the floor. Frankly, if your team will suck, it's much smarter from a business sense to avoid bloated salaries and long term obligations, as you rebuild, and it's in the best interest of the league that their teams make smart business decisions.