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-   -   Lakers upcoming Luxury Tax (http://www.insidehoops.com/forum/showthread.php?t=274745)

kobesabi 08-15-2012 06:45 PM

Lakers upcoming Luxury Tax
 
Quote:

The Lakers will have a tax bill of around $30 million next July, and in retrospect, will view this season as their salad days -- it's the last one where the tax rate is dollar-for-dollar. Starting in 2013-14 the new "incremental" tax takes over, where being $30 million above the tax line will mean paying a whopping $85 million tax bill.
And it gets worse. Starting in 2014-15 teams will pay an even higher rate for being repeat offenders -- defined as paying tax in at least three of the four previous seasons. A team $30 million over the tax line will pay -- brace yourself -- an additional $115 million in luxury tax.
After adding up their payroll, luxury tax bill and revenue sharing contribution (projected to be $49.4 million in 2013-14), even the Lakers have to stop to consider whether this simply can be written off as the cost of doing business -- and that's the future if they're paying players with salaries like Bryant, Howard, Gasol and Nash.

Uncle Stern "luxury tax"

$30 Mil for 2012/13
$85 Mil for 2013/14
$115 Mil for 2014/15?

Wow...85 and 115? Are these amounts additional expense on top of the team roster salary? Who receive this tax? NBA? IRS? or smaller market?

http://sports.yahoo.com/blogs/nba-ba...4960--nba.html

magicmanfan 08-15-2012 07:37 PM

Re: Lakers upcoming Luxury Tax
 
Quote:

Originally Posted by kobesabi
$30 Mil for 2012/13
$85 Mil for 2013/14
$115 Mil for 2014/15?

Wow...85 and 115? Are these amounts additional expense on top of the team roster salary? Who receive this tax? NBA? IRS? or smaller market?

http://sports.yahoo.com/blogs/nba-ba...4960--nba.html


Lakers could get under the cap for 2014/15, but there's lots to do...

The tax is split by all the teams not over the cap... so if 10 teams are over the
cap, add all their tax together and divide by 20 = each team's share

magicmanfan 08-15-2012 07:38 PM

Re: Lakers upcoming Luxury Tax
 
Do the Lakers have to get under the cap in 2014/15 or the tax level before the
repeaters tax kicks in?

kobesabi 08-15-2012 07:52 PM

Re: Lakers upcoming Luxury Tax
 
Quote:

Originally Posted by magicmanfan
Lakers could get under the cap for 2014/15, but there's lots to do...

The tax is split by all the teams not over the cap... so if 10 teams are over the
cap, add all their tax together and divide by 20 = each team's share

So NBA is acting like communists but actually redistribute the excess back to the smaller market.

Real communists make all those redistribution claim but hardly ever redistribute anything back to any "poorer folks"

But still ...wow...115M...that is like entire Lakers team salary or 2 smaller market team salary right there.


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