Originally Posted by Euroleague
The NBA counts taxes in their budgets, even though NBA teams don't actually pay the taxes.
NBA teams don't pay the taxes (that they count on their budgets), the players pay them. European clubs have to pay the taxes for the players, except for the Spanish League clubs, which work like the NBA, and don't pay the taxes either.
Also, a lot of European clubs pay for the agent's fees and their taxes, which NBA teams don't do.
In addition to that, European teams pay a base salary, plus a bonus salary (cars, houses/apartments, living expenses, etc.) to all of their players. NBA teams never pay anything like that, and it's not even allowed under NBA rules.
So sorry, but you are wrong. CSKA pays the taxes for their players, and the agents fees and agent's taxes for their players. NBA teams don't do any of that, and actually NBA teams count the taxes of the players in their salary cap budgets), even though they DO NOT ACTUALLY PAY THAT MONEY.
So, if anything, CSKA's total budget is actually much more accurate to what is spent on signing players, than the budgets of NBA teams are.
You can take CSKA's budget and deduct about 4.5 million euros for expenses and costs that do not relate solely to the cost to sign players.
So, their player cost comes in at about 33.5 million euros. Now, NBA team's budgets, ALL count taxes as paid by the clubs in their budgets, even though they DO NOT pay the taxes.
Since all NBA players are contracted union paycheck salary employees, the deduction comes right out of the paycheck of the player. Meaning, the PLAYERS pay the taxes, not the NBA clubs.
Yet, the NBA clubs count their budgets like they pay the taxes.
You can not do tax deductions at the time of the paycheck, only later when filing. So, the amount is taken at 35% automatically (less from what the team's list as their budgets), then the player's can file however they want later on.
So the team's get a 35% deduction.
So you have to deduct 35%, plus the state and local taxes (every NBA player pays it - even the ones in states with no tax), and then you get the actual numbers, which average about 45% automatic deduction, which the NBA teams DO NOT pay, but count in their budgets that they do.
So, you take an NBA team's salary cap number, deduct 45% from it, then compare to CSKA's costs of 34.5 million euros, just for the costs of the players.
THEN you get an actual comparison.
You cannot do a fair and accurate comparison the way you are doing it.
A player makes a salary of 100,000 euros in Europe, it means the full amount he nets in his bank account AFTER ALL DEDUCTIONS are made.
A player makes a 100,000 salary in NBA, it simply means the gross number on his paycheck. Never mind the union and retirement fund fees and agent fees.
European clubs would simply count and list the salary as 100,000, and NBA teams would list it the same way. But it's not the same. You are pretending that it is.