Re: Luxury tax

["Art Silva" <arsilva@xxxxxxxxxxxxxxxxxxx>]

I believe Ravi is correct on this one. The Tax was avoided for the 01-02
season not he upcoming one. With the average salary expected to go up in the
coming year the BRI is expected to exceed the kicker. Also the new tv
contracts are backloaded bringing revenue down. Here is the article from
NBA.com

NBA Announces No Tax for 2001-02 Season

NEW YORK, July 16 -- The National Basketball Association announced Tuesday
that computations provided for in its collective bargaining agreement with
the National Basketball Players Association yielded no payroll tax for the
2001-02 season and a salary cap for the 2002-03 season of $40.271 million.
Last season, the salary cap was $42.5 million.
During the first four years of the NBA's current collective bargaining
agreement, the average player salary has increased by approximately 54
percent from $2.6 million to $4.0 million. While the average salary
decreased last season from $4.2 million in 2000-01, it is expected that the
average will rise in 2002-03 (despite the lower salary cap) due to scheduled
salary increases in long-term guaranteed contracts, free agent signings, and
the use by teams and players of cap exceptions available under the
collective bargaining agreement.

There was no tax assessed on teams during the 2001-02 season because player
salaries and benefits totaled 60.2 percent of league revenues, less than the
61.1 percent figure that triggers the team payroll tax.

The minimum team salary for 2002-03 will be $30.2 million.



Art Silva


----- Original Message -----
From: "John Spindler" <jaspindler@yahoo.com>
To: <kelticsfan@attbi.com>
Cc: <celtics@igtc.com>
Sent: Thursday, July 18, 2002 7:48 AM
Subject: RE: Luxury tax


> 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.

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