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I posted a little about this yesterday.
http://spurstalk.com/forums/showthre...ghlight=luxury
http://www.realgm.com/src_wiretap_ar...for_2005_2006/
13th July, 2006 - 7:53 pm
Larry Coon FAQ - According to Larry Coon in his 'Salary Cap FAQ,' six teams were forced to pay the luxury tax for the 2005-2006 season. The tax level was set at $61.7 million and listed below are the clubs that went over and the amount which is owed.
New York Knicks : $37.2 million
Dallas Mavericks : $17.3 million
Orlando Magic : $7.8 million
Indiana Pacers : $4.7 million
Memphis Grizzlies : $3.7 million
San Antonio Spurs : $.9 million
The tax level for the 2006-2007 season, according to a NBA Press Release, will be $65.42 million.
Coon helped round out the luxury tax picture with the following comments:
"I don't expect any non-taxpaying teams to become taxpayers, and most of the teams who paid tax this year have enough flexibility to get under the tax level for next year, except New York and probably Dallas. It seems most teams are making a pretty conscientious effort to stay under the tax level, so I can easily see just those two teams paying tax next year."
When asked if any of the clubs on the list were surprsing, Coon replied, "The new CBA took out a lot of the uncertainty that could have led to surprises, by setting the tax level in advance of the season. Teams no longer need to project where they think the tax level will fall -- they now know exactly where they need to be. In addition, last year's amnesty provision allowed teams to cut expensive players and reduce their tax profile. As a result, there were no real surprises this year."
The one-time amnesty clause helped both the Knicks and Mavericks.
"The Mavs would have owed another $15.9 million; the Knicks another $6.6 million, but without the amnesty provision they might not have make the same decisions about the rest of their rosters, so you can't exactly say that they saved that much." said Coon.
I posted a little about this yesterday.
http://spurstalk.com/forums/showthre...ghlight=luxury
this luxery tax how is it ascertained? base on payroll balance at start of season or end of season? cose if its at the start then we pay tax, wattabout end of season when those expiring contracts come of the books or traded away for nothin or we drop them half way through the season....
Ricky Bobby, now a repeat report. I'd better get some rest soon.
Maybe I'll start a Javtokas thread. That would be a safe one.
So, since the Knicks are over the Luxury Tax, how much would it cost them to match the 7 Million dollar offer for Butler??
14M. It's dollar for dollar for teams over.
$14 million most likely -- unless they somehow fell below the tax threshold in one of the years of the contract.
James Dolan wiped his butt with $14 million this morning, so I doubt matching will he too much of a concern.
Wow, so I guess thats the reason the Spurs gave Elson the bigger offer
[TimVP]
$900,000!
NOOOOOOOOO!
[/TimVP]
Cheap ass Holt, he let 5 of 29 other owners outspend him.
how many owners would outspend holt if they had tim duncan and a shot at multiple championships?
Cheap ass Holt, he let 5 of 29 other owners outspend him.
Unless you guys go out and start buying tractors, Peter Holt won't have enough money to feed his family.
damn, Holt's going broke
The really bad part about this is that the Mavs are only paying 49.1M next year to the players on the floor (they are paying four players that have retired or were cut)
This means that the "big spending" Mavs are putting a team on the court that is around 15M under the cap. So much for the idea that you need a high payroll to compete.
1. Salary cap is not the same as the luxury tax threshold. With the luxtax threshold at $65M, I guess the salary cap is in the low 50's somewhere.
2. The Mavs are still paying Finley, so you need to add that to your payroll, but yes, it looks like the Mavs are well on the way to controlling their spending.
Cheap ass Holt, he let 5 of 29 other owners outspend him.
The Spurs went for broke to win championships in the period 2004-2006. They got one in those three years. Holt paid the luxury tax for last season.
Now they are cap-strapped and old, and you look over and suddenly the Dallas Mavericks have better payroll management, at least for this one year.
So in 2006-07 the Spurs have to pay the piper. The Big 3 will be surrounded by creaky old veterans in the twilight of their careers, and budget-priced scrubs, at least for that one year. Oh well.
I'm feeling if you want to take a year off, go big. TANK. This is the year to do it.
Cheap ass Holt, he let 5 of 29 other owners outspend him.
Hey, they've done it before. When players get banged up, just sit them out and make sure they have pleeeeeeenty of time to get healthy.
The unappealing alternative is that the Spurs want a slightly higher draft pick but want the playoffs still. An early 20s draft pick is much better in a deep draft than 29 or 30. They're seeing if they can get as far as the Rockets did with the 6th seed.
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