Not the cap...THE TAX. we’re already more than $10M over the cap, with transactions still needed to fill the roster and no Poodle yet. The Holts have been willing to pay the tax to compete, because they could recoup some of the bill via playoff games. Those generate $1-2M per game. I wouldn’t count on that going forward.
There also could be a lot of teams over the tax this year (depending on where it is). How I understand it the tax paid is split between the non tax paying teams. So it is not only the tax that is paid but the lost revenue from getting the tax return.
Yes, this is my understanding too. Going from $1 under the tax to $1 over it is a huge deal. Even more so if there are more tax-paying teams than normal.
I don't think paying the tax for this year is that big of a deal
It is.
Its similar to where if you just made a bit too much money last year and sneak into the next federal tax bracket level, now not only do you not get a refund but you gotta pay Uncle Sam as well.
Since you’re not paying it. This isn’t fantasy bball.
Of course you would think so, you don't have to pay it.
In fact if there's a year to not pay the tax it is this one. You know, with this whole COVID thing and the Spurs missing the playoffs for the first time in forever.
That's not really how progressive tax works in the US. It's possible that you could miss out on a credit or something by making too much, but when talking about straight taxes, no. The brackets are nested, so you only pay the higher rate on the overage from the lower rates. Say you're $50 under a threshold and have a chance to make an extra $100, putting you $50 over. Maybe you go from a small refund to a small payment for that (which of course is actually based on your withholding and not on the rate itself), but it's very much less than the $100 extra you made. There's no incentive in the US to make less money for the most part. That isn't and certainly wasn't always true in other nations. The UK famously did have a time where the tax worked like you suggested and people at the fringe would make less money to stay out of the higher bracket because they'd lose more than they'd earn.
Not just that, but SO many teams are locked into a ton of salary that the tax payments should be pretty good this year (more money, bigger pie). Also the more financial flexibility the team has, the more aggressive they could be in taking advantage of clubs in worse financial situations. Even if they end up going over the tax later, they can choose to do so from being fairly compensated rather than doing so to keep together mediocre role-players.
The other reason this covid thing is hard to pay the tax with is that the ABA teams still pay the St Louis franchisers. I know there was an announcement of a buyout on the deal, but never heard if it really was consummated.
Before, the ABA teams paid what, 25% of their national TV money cut to them? That left the ABA teams more dependent on gate revenues that they haven't been getting.
Even if the buyout deal was confirmed, it's probably costing then many millions a year just to pay that off with no gate money to help.
That's why I think things could get bad enough that they don't even keep Lyles. And hopefully a good reason to not bring Forbes back.
There is zero reason for the Spurs to even consider paying the tax. If it somehow made them legit le contenders then maybe, but that's not on the table.
Interesting. Oh, to be a St. Louis franchiser. Free money is nice.
Looks like the mini-camp has started....
Luka looking beefy.
Luka responded to Galen Robinson in the comments, "locked in" with "nightly".
Let's get it, boy!
1/7 of the TV revenue. It’s estimated that when the partial settlement of $500M was received in 2014, the Silna brothers had already collected $300M for the corpse of their ABA franchise. That settlement gives the 4 surviving ABA teams majority ownership of the Sprits, effectively cutting their payment in half, and they have the option to buy out the rest of the Spirits franchise in the future.
Damn, talk about bulking up. One thing you can say about our current group of youngins is that they all look like hard workers and trying to develop their bodies - Luka, Keldon, Lonnie are all visibly buffier now than they were at the start of the season. Hopefully it translates to the court... But it's a great sign, especially for someone like Luka, who really needs the strength.
Dare I say... League ed?
Next step for Luka is developing that killer instinct. If he ever gets it, watchout.
Want to see this dude diving to the rim with no respect for human life. If he starts doing that, it should really open things up for him.
It's all about effort with him - it's always been his question mark, probably still is. If he can look like he gives a for the entire game, on both ends of the court, he'll be a great piece for the Spurs. If he doesn't... I'd rather we find out sooner than later, so the Spurs can start planning around their long-term PF situation. From the little we've seen, and how he's visibly bulked up, I'm cautiously optimistic. Next season hopefully will make things clear.
Lyles could really just have been a placeholder for Luka and for the other Spurs players to get to know how to play on the court with that archetype.
Last edited by timvp; 09-18-2020 at 01:34 AM. Reason: fixed gif
Him and Keldon seemed to hit off as they where drafted together and played together in G League. Hopefully both can push each other to be the best players they can possibly be - Just remember Luka is a young big and we all new it would probably take 2 or 3 years for him to be ready as he was so young.
I am very optimistic that we will see a lot of improvements the next season and I truly think him and Keldon offer is some good building blocks for the future.
Keldon and Luka developing that Tobi and Bobi chemistry would be awesome. Samanic's body and game are much better suited to the league than Boban's too.
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