Girasuck
07-12-2009, 06:15 PM
Thanks to other teams in the luxury tax and the CBA.
http://www.deseretnews.com/article/705316264/Jazz-finances-not-quite-so-bleak.html
Even though their payroll for next season currently stands at more than $73 million, not everything is as ugly as it may seem when it comes to the Jazz's checking account.
When luxury-tax payments from seven teams (New York, Dallas, Cleveland, Boston, Portland, Phoenix and the Los Angeles Lakers) that exceeded the NBA's team payroll overspending threshold this past season were divvied earlier this week among the league's other 23 teams, the Jazz were on the receiving end of just more than $2.9 million.
And on July 29, ESPN.com reported this week, the Jazz and every other NBA team will receive another $6,467,847.
That money is their take from a little-known collective-bargaining-agreement provision in which up to eight percent of player salary is held in escrow throughout the season, and then — depending on whether league-wide basketball-related income hits a preset level — essentially is either redistributed to teams in equal shares or finally given to the players.
This past season, because basketball-related income was below projections, teams were the beneficiaries.
Moreover, the Jazz will not have to contribute $363,087 to the escrow fund for next season.
In all, for the month, that's nearly $10 million in either cash received or money that doesn't have to be spent — funds, that is, the Jazz may want to save should they have to pay the luxury tax themselves next season.
The tax system calls for teams to pay a $1 tax for every $1 they are over the threshold, which for next season is set at $69.92 million.
If the Jazz retain restricted free agent Paul Millsap, sign a requisite 13th player next season and keep each of the 11 players they currently have under contract through the end of next season, they'd be facing a tax in the $10-to-$12 million range.
So basically we match Portland's offer with this "free" money and then take our time moving Boozer. Worst case scenario is Boozer plays for us this year and walks next year. We get cap relief and don't lose Millsap. Hopefully we can deal Boozer before the trade deadline but if not, no biggie. We still have the 2010 New York pick as well so trading Boozer with that pick could get us a nice return.
http://www.deseretnews.com/article/705316264/Jazz-finances-not-quite-so-bleak.html
Even though their payroll for next season currently stands at more than $73 million, not everything is as ugly as it may seem when it comes to the Jazz's checking account.
When luxury-tax payments from seven teams (New York, Dallas, Cleveland, Boston, Portland, Phoenix and the Los Angeles Lakers) that exceeded the NBA's team payroll overspending threshold this past season were divvied earlier this week among the league's other 23 teams, the Jazz were on the receiving end of just more than $2.9 million.
And on July 29, ESPN.com reported this week, the Jazz and every other NBA team will receive another $6,467,847.
That money is their take from a little-known collective-bargaining-agreement provision in which up to eight percent of player salary is held in escrow throughout the season, and then — depending on whether league-wide basketball-related income hits a preset level — essentially is either redistributed to teams in equal shares or finally given to the players.
This past season, because basketball-related income was below projections, teams were the beneficiaries.
Moreover, the Jazz will not have to contribute $363,087 to the escrow fund for next season.
In all, for the month, that's nearly $10 million in either cash received or money that doesn't have to be spent — funds, that is, the Jazz may want to save should they have to pay the luxury tax themselves next season.
The tax system calls for teams to pay a $1 tax for every $1 they are over the threshold, which for next season is set at $69.92 million.
If the Jazz retain restricted free agent Paul Millsap, sign a requisite 13th player next season and keep each of the 11 players they currently have under contract through the end of next season, they'd be facing a tax in the $10-to-$12 million range.
So basically we match Portland's offer with this "free" money and then take our time moving Boozer. Worst case scenario is Boozer plays for us this year and walks next year. We get cap relief and don't lose Millsap. Hopefully we can deal Boozer before the trade deadline but if not, no biggie. We still have the 2010 New York pick as well so trading Boozer with that pick could get us a nice return.