basketballwacko2 wrote:jbk1234 wrote:basketballwacko2 wrote:The Pacers paying tax in 2025-26 would be insane from a business perspective. Simon is not what Simon was 30 year ago. Malls are dead, they were in the shopping mall business. Most of the Pacers owners net worth is the Pacers franchise. This isn't a guy who has $50 billion with $20 billion in the bank. This team has to make sense and can't be a money pit.
The Pacers owners don't want to pay tax right. So that's bad, but what's Boston's issue? They don't want to pay tax for a team that might finish 8th so they dumped salary and may dump more. If my calculation is close they are at $209 million. $20 million in the tax, and looking for a taker for Simons who's expiring.
The Celtics have been in the repeater tax for awhile now and were a 2nd apron team. Their tax bill was unsustainable and they're looking to reset the repeater clock. They have two players on supermax contracts. It is nothing like the Pacers situation.
The Pacers could've paid Turner $25M and ducked the tax by parting with another player. The owner could have sold off a minority percentage of the team at a $2.5-3B evaluation to help defray the expense. This is bad. It will have long-term consequences for the organization.
As for selling off a minority stake in the team I think they already did that as Herb only owns 80% of it. "Steven Rales owns the 20% minority interest in the Indiana Pacers, according to Bleacher Report. He previously held a 5% stake and recently purchased an additional 15% from Herb Simon, bringing his total ownership to 20%."
So sell 20% more. Sell the entire thing. What you don't do is send the message that you never intend to spend regardless of how good the team is because the fans and the players will make their own decisions in response.