Re: [Celtics' Stuff ] "...the Celtics are actually 'down $3 million on the ne...

[CeltsSteve@xxxxxxx]

In a message dated 7/19/03 4:32:22 AM Pacific Daylight Time, JimMetz@xxxxxxx 
writes:

> Tip of the cap Thank you, Portland, New York, and Dallas. The three  
> biggest spenders in the NBA last season helped create a pool of cash  
> for teams that stayed below or close to the luxury tax threshold of  
> $52.9 million. Teams under the threshold received approximately $18  
> million. The Celtics paid approximately $7 million in taxes, so their  
> return equaled approximately $11 million. But the approximate $11  
> million is not a surplus, according to the Celtics' accounting.  
> According to owner Steve Pagliuca, the Celtics are actually ''down $3  
> million on the net.'' He said the team made an investment of  
> approximately $7 million on the basketball side and there will be an  
> increase in player salaries of approximately $7 million.
> 
> ''We're running the team slightly below break even,'' said Pagliuca.  
> ''So, we're investing the tax returns into the team.'' - Shira in today's 
> Globe



Can someone explain or help me understand Pagliuca's fuzzy math; assuming, of 
course, that Shira is accurately reporting what he said ?

How did the team pay $7M in tax when they were below the LT threshold? And if 
they DID exceed the LT threshold and ended up paying any tax at all, how 
could it have possibly been anywhere near $7M since she is reporting the LT 
threshold to have been established at $52.9M and the team's payroll was pretty darn 
close to that amount to begin with? Where's the "dollar for dollar" basis to 
arrive at $7M?

And what exactly does he mean by "a $7M investment in the basketball 
side"???? That they charged off some expenses to the "basketball side" by way of 
creative book keeping? Or that they are applying both Ainge's salary to "the 
basketball side"? He's not paid anything close to that amount.
 
I get the comment re: $7M increase in salaries if you factor raises for 
Walker, Baker, Pierce, Delk, Williams, and Battie  plus two draft picks over last 
year but the other comments and unanswered questions are troubling.           
    
CeltsSteve