New Lux tax deals....

[Duff McCartney]

Word around the campfire is with the new CBA comes new Luxury Tax rules. One of the rules is that the luxury tax will be in effect every year. Not just certain times like before with the old CBA.

This will definitely be affecting teams like Dallas, New York and Portland.

[ChumpDumper]

Hmm, that's not what I've seen reported. I saw the tax kicks in when player salaries exceed 61.1% of regular revenues.

[Duff McCartney]

http://www.dallasbasketball.com/morestories.asp?id=3286&NAV=1

[ChumpDumper]

Interesting. Contradicts their earlier report.

[picnroll]

It explains why minimum salary players are expected to be exempted from adding to a team’s tax liability, since in some situations a team may be forced to add on players to fill up the roster (and thus increase their payroll) even if close to the tax threshold.

So when you calculate where the Spurs will incur the penalty you can subtract out all the vet minimum salaries.