Tax and Escrow Payments

[Kori Ellis]

I might be wrong, so someone will probably correct me.

Escrow Money

151M was distributed back to the 30 teams (about 5M each).

7M was used by the league.

38M was distributed back to the players.

Tax Money

These teams were over the tax level ($61.7M) by the following amounts:

Knicks ($37.2), Mavs ($17.3), Magic ($7.8), Pacers ($4.7), Grizzlies ($3.7), Spurs ($0.9)

The 24 teams under the tax threshhold got their full share (1/30th) of the total tax paid (71.6M) (so that's ~2.39M x 24 teams = 57.28M). (Spurs didn't get this because they were over.)

Every team gets 1/30th of the remaining money (71.6-57.28)/30 = $477,333

So the Spurs organization paid 900K (the dollar for dollar tax they were over), missed out on 2.39M distribution, but got 477K (tax) and 5M (escrow) back.

[timvp]

Going over the tax threshold isn't really have that deadly anymore. It used to be that you'd miss out on $10M+ if you were over the tax threshold. Nowadays you are out a few million.

If the Spurs really wanted to, they could have traded away Beno for a pick last year and gotten themselves under the tax threshold. But at the end of the day, it probably wasn't even worth the $3M savings or whatever.

[ChumpDumper]

No tractor joke?

[furry_spurry]

As more and more teams watch payroll, contributions into the luxury tax will get lower and payments out of it will be lower. Now, it's mostly down to the Knicks cutting every other team a check. :lol

[Kori Ellis]

I might be wrong, so someone will probably correct me.

Escrow Money

151M was distributed back to the 30 teams (about 5M each).

7M was used by the league.

38M was distributed back to the players.

Tax Money

These teams were over the tax level ($61.7M) by the following amounts:

Knicks ($37.2), Mavs ($17.3), Magic ($7.8), Pacers ($4.7), Grizzlies ($3.7), Spurs ($0.9)

The 24 teams under the tax threshhold got their full share (1/30th) of the total tax paid (71.6M) (so that's ~2.39M x 24 teams = 57.28M). (Spurs didn't get this because they were over.)

Every team gets 1/30th of the remaining money (71.6-57.28)/30 = $477,333

So the Spurs organization paid 900K (the dollar for dollar tax they were over), missed out on 2.39M distribution, but got 477K (tax) and 5M (escrow) back.

Actually I just read on Larry Coon that the remaining money bolded above was not distributed back to teams it says:

Undistributed funds:
$14,328,590 (used to fund revenue assistance plan)

*shrug*

So the Spurs didn't get that $477K either.

[Bruno]

Every team gets 1/30th of the remaining money (71.6-57.28)/30 = $477,333


Not sure of that.
Larry Coon say in his FAQ that the reamining money ($14.3M) is used in a assitance plan to help teams that lose money. I'm not sure that each team received 1/30th of this money, teams with financial difficulties receives maybe more money than the others.

[Kori Ellis]

Not sure of that.
Larry Coon say in his FAQ that the reamining money ($14.3M) is used in a assitance plan to help teams that lose money. I'm not sure that each team received 1/30th of this money, teams with financial difficulties receives maybe more money than the others.

Yeah I just saw it.

So basically the Spurs lost $2.39M + 900K for going over the threshhold by 900K, right?

[furry_spurry]

Wonder how the Hornets ended up- financially speaking?

[Bruno]

Yeah I just saw it.

So basically the Spurs lost $2.39M + 900K for going over the threshhold by 900K, right?

Yes, these $900k cost $4.2M to the owner.

As furry_spurry said,
A nother thing to consider is that only New york (and maybe Dallas) will be over the tax this year. The tax money paid by teams will be around $40M : being $1 over the tax will be cost something like $1.5M next year.