The luxury tax takes its toll

[JCSunsfan]

Consider the implications of the luxury tax on free agency.

Reports are that Cuban offered Nash a 4 year $40+ million contract. But that contract would have cost Cuban $80+ million (if the lux tax survives the next CBA).

Cuban signed Daniels to a 6 year $38 million contract, but again it will cost Cuban $76 million over 6 years. IOW Cuban is paying more for Daniels than we are paying for Nash.

If the Lakers are over the cap even without Kobe's salary (and I believe they are) that $140 million contract that the Lakers are offering Kobe will actually cost Buss a whopping $280 million.

Even for deep pocket owners like Cuban, it eventually takes its toll--which is exactly what the luxury tax was designed to do.

Don't look for the Suns to be in lux tax land any time soon. If the CBA stays the way it is, success in the new NBA is about lean and mean.

 

[elindholm]

You're assuming that the luxury tax will still exist in the next CBA, which most likely it won't.

I'd be surprised if Cuban pays more than one more year of luxury tax. Did we even get the final word on whether it kicked in for last season?

 

[George O'Brien]

You're assuming that the luxury tax will still exist in the next CBA, which most likely it won't.

I'd be surprised if Cuban pays more than one more year of luxury tax. Did we even get the final word on whether it kicked in for last season?

On the theory that there will be a next season.

 

[JerkFace]

You're assuming that the luxury tax will still exist in the next CBA, which most likely it won't.

I'd be surprised if Cuban pays more than one more year of luxury tax. Did we even get the final word on whether it kicked in for last season?

there will have to be some kind of penelty for going over the cap, otherwise owners like cuban and allen would just go crazy. the nba doesn't want the same problems as the mlb.

 

[thegrahamcrackr]

there will have to be some kind of penelty for going over the cap, otherwise owners like cuban and allen would just go crazy. the nba doesn't want the same problems as the mlb.

The MLB doesn't have a cap.

The NBA does. The soft cap is what keeps players like Cuban from sinign everyone, but allows small market teams to compete for their OWN free agents.


The luxary tax is independant of the cap. You can be over the cap, but under the tax thresh hold. It has only been triggered what, 2 seasons now? Maybe a third next year? All it does is counteract the purpose of the soft cap. Small market teams can't compete for their own FA's because money becomes a huge factor.


Abolishing the tax will help small teams much more than it will help large teams. (Payroll sizes). It is a huge bargaining chip because it will help player movement, and possibly inflate contract prices some more. It will most likely be thrown out, or significantly altered in exchange for either shorter guaranteed contracts, or an age limit.

 

[JCSunsfan]

You're assuming that the luxury tax will still exist in the next CBA, which most likely it won't.

I'd be surprised if Cuban pays more than one more year of luxury tax. Did we even get the final word on whether it kicked in for last season?

Yes, I am assuming that. I said so in my original post. I am also assuming there will be some sort or luxury tax in the future--although altered may be.

Eric, where are you getting the information that the lux tax is a certain goner. I can only make evaluations based upon present conditions.

 

[elindholm]

Eric, where are you getting the information that the lux tax is a certain goner.

I haven't read that it's a "certain" goner. I've read that it is unlikely to survive the next CBA, since the players don't like it and many owners aren't thrilled about it either. But unfortunately I can't remember where. Probably on hoopshype.

 

[Joe Mama]

Eric, where are you getting the information that the lux tax is a certain goner.

I haven't read that it's a "certain" goner. I've read that it is unlikely to survive the next CBA, since the players don't like it and many owners aren't thrilled about it either. But unfortunately I can't remember where. Probably on hoopshype.

that's true, except the latest articles are saying that the owner's latest offer included a more strict luxury tax it sure doesn't seem like the owners are ready to let it go.

Joe Mama

 

[Yuma]

If you go by recent history, I am not sure how much the luxury tax will help. Sure you have a high payroll team like the Lakers who have won 3 Championships recently. Then you have a small market team like San Antonio who have won 2 Championships recently, too. It seems there isn't a straight forward money=success formula. If so, Cuban had what, 4 max guys this last year on his roster. It all comes down to getting the right players. LA did a deal for Shaq, and I remember West getting flaq for drafting Kobe. That foundation brought Championships to LA. We have to hope the moves we are making in Phoenix do the same. It's all a crap shoot in the end.

 

[JCSunsfan]

The luxury tax has helped the owners tremendously. It has kept salaries down significantly. Its doing it right now. If it weren't for the luxury tax NBA owners on the coasts would be spending themselves into oblivion. It has curbed their spending and allowed smaller market teams have the cash to survive.

The negative is that it allows owners like Don Sterling to make money without having to improve his product.

The more Buss spends, the more Sterling makes.