Re: Point guard

[Alexander Wang <awang@MIT.EDU>]

At 08:45 AM 3/13/01 -0500, Jim Meninno wrote:
>"The deal" on the luxury tax can be found at this link from Patricia
>Bender's site...
>http://www.members.home.net/lmcoon/salarycap.htm#15
>
>Basically, no team pays any luxury tax at all unless league wide salaries
>exceed 55% of Basketball Related Income by more than 10%.  If it's less than
>10%, the players pay the money back to the teams themselves!  If it exceeds
>10%, the difference is made up by the overspending owners in the form of a
>tax that is computed by a complicated formula based on BRI, not the cap.

My impression from reading quotes of various GMs is that there will
definitely be a luxury tax (i.e. league wide salaries are above the point
where the 10% escrow will cover the difference). And it seems that the
luxury tax will be taken from the taxed teams and distributed among the
non-taxed teams. Which is why guys like Gaston are very clear that they
don't want to pay a penny of the tax: paying that penny means you can't
take part in the Paul Allen--Mark Cuban--Cablevision generated tax
windfall. Fortunately, that penalty seems sufficient enough to deter even
relatively free-spending teams like the Miami Heat along with "fiscally
conservative" types like Gaston, so the playing field is not as uneven as
it could be despite the Portland/Dallas types in the league.

Alex