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Old 02-21-2013, 12:52 PM   #1
insidehoops
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Default New NBA luxury tax issues

"Under the previous agreement, if a team exceeded the luxury tax level by $4 million, it paid an additional $4 million in tax penalties. If it went over by $14 million, it paid $14 million in penalties," Krawczynski wrote.

"Next season, because of various increases in penalties, that $4 million will cost a team $6 million. And the team that goes over by $14 million will be hit with a $26.25 million bill.

"To make matters worse, any team that exceeds the cap "apron" which is $4 million over the existing luxury tax level is not allowed to bring in a player in a sign-and-trade deal. That team also will only be able to offer a three-year mid-level exception deal to a free agent rather than the four-year exception that teams under the apron can offer, putting them at a bargaining disadvantage on the open market."

-- Deseret News
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