RE: Luxury tax

[John Spindler <jaspindler@xxxxxxxxx>]

Perhaps you are correct, but this is not the way I
read it.  If we avoid the tax for another year, then
we should be able to resign RR as long as we can move
KA and clear some space before next years situation is
determined.  In any case, I do not believe that Gaston
is going to risk losing Rodney after he has raised
ticket prices.  The bar has been set based on this
past season's performance.  If they go into this
season with similar expectations, they will play to a
higher capacity during the regular season and
hopefully have a good playoff run. Despite their
success last season, they had a lot of empty seats
during regular season play.  Overall revenues will be
a lot higher this coming year if they play to a higher
capacity during the season.  Fans will come to the
games based on last year's performance.  If they let
Rogers go, they are sending a message to the fans,as
well as the players and coaching staff who worked so
hard to get where they are. I don't beleive that
Gaston is that foolish. 


--- Ravi Singh <kelticsfan@attbi.com> wrote:
> John,
> 
> All talk in the news of not having a luxury tax this
> year was for the
> season just completed.  The luxury tax assessment is
> determined after
> the season as basketball related income and salaries
> including bonuses
> must be calculated and factored into the equation
> before a tax threshold
> can be determined. This past season, salaries and
> benefits came in at
> 60.2% of BRI which is below the 61.1% that would
> have kicked in the
> luxury tax.  For the upcoming season, it is expected
> that salaries and
> benefits will exceed 61.1% of BRI thereby kicking in
> the tax.  
> 
> -Ravi
> 
> -----Original Message-----
> From: owner-celtics@igtc.com
> [mailto:owner-celtics@igtc.com] On Behalf
> Of John Spindler
> Sent: Thursday, July 18, 2002 7:11 AM
> To: awang@MIT.EDU
> Cc: celtics@igtc.com
> Subject: Luxury tax 
> 
> 
> Very thorough and detailed analysis of the luxury
> tax
> and it's potential impact on the Celtics roster.  It
> may however be a moot point, as the NBA announced
> last
> night that the luxury tax will not be in effect this
> year. Michael Jordan's return and the related
> revenues
> that it generated was cited as one of the reasons
> that
> the tax threshold would not be triggered for the
> coming season.  If I understand the implications of
> this, we should be able to resign Rodney under the
> current CBA, and still be under the tax threshold
> when
> Kenny Anderson comes off the books next year. It is
> also entirely possible that the tax will not be
> triggered next year either.  The real winners based
> on
> last nights announcement are the high spending teams
> such as Portland and Dallas.  They still have the
> high payrolls, but are
> not going to pay a penalty for it this year. 
> 
> 
> In any case, Gaston seemingly no longer has the
> luxury
> tax excuse for not signing Rogers, and will have a
> lot
> of angry season ticket holders on his hands if he
> raises prices and lowers payroll; not to mention the
> message this sends to Walker and Pierce.  I for one
> believe that Gaston will do the right thing, and pay
> Rodney what he is worth.  It is just a buyers
> market,
> and he is being a businessman.
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