Worrying about taxes

[bball55]

I will never understand fans of any professional sports in general and basketball in particular.
Having read the forums from time to time, I always read the same thing:

Calculating budgets, taxes, luxury taxes, etc etc. You don't calculate even your own budgets and you care about budgets of some rich owners.

Too much money for this player?, Much for that, and so on so on.

Folks, it's not your money. It's money of a wealthy billioner or two. You are not owners.
Let these rich people spend more.
What's up to you?

[bball55]

Let me add. Tax is a return to you. The more tax the more income (in a school, hospital, etc) for your folks.

[Gutter92]

/facepalm.

[5DOM]

Not overpaying -> Better chance of winning -> More revenue for the team -> Good for the city -> Good for me

[bball55]

Not overpaying -> Better chance of winning -> More revenue for the team -> Good for the city -> Good for me

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Let me guess your monthly salary is less than $5000. Would you like to get double of that a month? You know it is good for you.

[UNLVNugsFan]

Overpaying a free agent, paying the luxury tax, taking back long contracts in a trade, etc SHOULD matter to fans. Mainly because, even billionaire owners have a limit on what they are willing to spend. Every bad decision gets them closer to that limit, and limits other moves that they can make (or are willing to make). The economic climate only lessens their margin of error.

I think what some fans forget, is that many franchises lose money each year, and many others are only making small profits. The larger the payroll for some of these teams, means they have to get more revenue from somewhere else. This could mean increasing ticket/merchandise/concessions/parking prices, which directly affects fans. Owner's are extremely reluctant (and rightfully so) to support a losing investment, so they will need to get their money elsewhere. Overcharging fans doesn't always solve this problem, but don't think they won't try it.

[flash22]

what are you talking about...its not about worrying about some rich guy paying a tax its about worry about fielding a team under the salary cap.

[Flash3]

It's called die-hard fanaticism.

Some of us are die-hards, that we go way beyond the sports, but also into the business side of sports, which can be very interesting.

[bball55]

But, there are some rich guys out there who aren't worrying about paying luxury taxes. E.q. Knicks, Lakers, etc. Their owners must have same opinion as me. Why fans of other teams are worrying then?

This NBA thing is a good business field. I couldn't find a better field in which there are tousands of accountants for me.

[ss1986v2]

most owners dont spend that way though. if their salary gets too high, they have to slash payroll. look at whats happening to the bucks. essentially selling jefferson for nothing. not even willing to peruse cv and still might lose sessions. their owner reached his budget ceiling, and now the team is going to be worse off than it was just a year ago. thats the downside to spending.

and i dont think you understand what the luxury tax is. they arent cutting a check to uncle sam. they cut a check to the nba.

[bball55]

and i dont think you understand what the luxury tax is. they arent cutting a check to uncle sam. they cut a check to the nba.

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Doesn't this mean the richer nba the more tax to uncle sam? Nba not paying tax for income? Or, maybe, nba is just like another company? In any case, who cares who pays whom. I wouldn't mind whether they pay each others 1 dollar or 1000000000000 dollars. For us, no difference.

[Bam-Bam Bigelow]

Salary cap=58 mill, Luxury Tax=70 mill

You can only go over the cap to resign your own players, with the midlevel being an exception (teams over the cap get 5.6mill to spend every year). Raptors can't go sign any real bench depth because the NBA won't let them or any other team go over the Salary Cap to sign players from outside their own team. Even if Raptors ownership wanted to spend 10 million more, NBA rules won't let them. To sign Turkoglu they had to give up their MLE and the rights to their own free agents.

Thats an example of why fans care about contracts. It limits what teams can do financially. I don't think you fully understand the financial side.

[ss1986v2]

and i dont think you understand what the luxury tax is. they arent cutting a check to uncle sam. they cut a check to the nba.

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Doesn't this mean the richer nba the more tax to uncle sam? Nba not paying tax for income? Or, maybe, nba is just like another company? In any case, who cares who pays whom. I wouldn't mind whether they pay each others 1 dollar or 1000000000000 dollars. For us, no difference.

yes it does, because if my teams owner pays 100000000000 dollars, it means hes broke and is going to be selling the team. there are repercussions to spending.

[bball55]

keyword of your all words : limit.

Ok, i might not have understood. Lets see. Who is understanding and who is not.

Is there any restriction/limitation on the number of players i can hire if i am an nba team owner?

[bball55]

yes it does, because if my teams owner pays 100000000000 dollars, it means hes broke and is going to be selling the team.

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then, you will still be supporting your team owned by a new guy who will buy. No?

[ss1986v2]

yes it does, because if my teams owner pays 100000000000 dollars, it means hes broke and is going to be selling the team.

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then, you will still be supporting your team owned by a new guy who will buy. No?

unless he sells it to someone who moves the team.

[bball55]

Bam-bam, lets see again if i understand or not.

There is no limitation on number of players, right?

You say salary cap=58 million, ok?
I will resign all high paid players and then, I will sign many playersç Number of players I can sign: 50 players (all veterans) with 1 million dollars salaries. So, I have 50 players.

Luxury tax: 70 million usd? ok, after a year or two, i will pay each of my player 20 million a year.
So, I will pay 1 billion dollars a year.

Can I do these? Any obstacle? NBA rules permit me? Yes. So, whats the problem?

[Heat3]

we care about salaries because there is a such thing as a salary cap. therefore how an owner spends his money affects the success of our favorite team.

[UNLVNugsFan]

Bam-bam, lets see again if i understand or not.

There is no limitation on number of players, right?

You say salary cap=58 million, ok?
I will resign all high paid players and then, I will sign many playersç Number of players I can sign: 50 players (all veterans) with 1 million dollars salaries. So, I have 50 players.

Luxury tax: 70 million usd? ok, after a year or two, i will pay each of my player 20 million a year.
So, I will pay 1 billion dollars a year.

Can I do these? Any obstacle? NBA rules permit me? Yes. So, whats the problem?

NBA teams have a 15 man max roster, with 12 active players who can be activated and play in each game. Maybe I am missing your point, but it appears you do not have a clear grasp of reality. Teams have budgets, owners do not have an unlimited stockpile of money, they have limits on what they are willing to spend (mostly because they want to remain profitable, you know, because its a business and all). Due to these limits, a bad move here and there, limits your roster flexibilty. It can also, in worse cases, cause an increase in prices for fans or even change ownership and/or re-locate the team.

[flash22]

theres a roster size limit.... and not all teams have Larry bird rights to every player. and that team would be terrible...thats the reason why fans are interested