The Trade Only Gets Better...

[ASUCHRIS]

It's mind boggling, but this trade only gets better....


From AZ REPUBLIC

The Suns dealt Tom Gugliotta, three draft picks and $3 million to Utah to make this season less taxing on themselves.

Phoenix sent Utah the first-round picks it received in last month's New York deal (this year's pick and a late first-rounder in 2006 or later) for injured big men Keon Clark and Ben Handlogten.



I had no idea we decided to throw in another first round draft pick. Granted, it is protected, but jeez...oh, and another 3 million. The Jazz braintrust must have been laughing their asses off when they were negotiating this one. I can just see one of them, "Can you believe these idiots? Get BC to throw in some money!!"

 

[slinslin]

One of the pics is next years second rounder.

 

[B-Dogg]

Why send the 3 mil cash... because as most GM's agree there will be no Lux Tax again this year... so all the suns did was save 2 Mil or so and give up 2 first round picks... This trade made no sense... you give up that much to save 2 mil... maybe its time for Jerry to sale the team or sale the Diamond Backs because its becoming obvious he cant afford to run both...

 

[Chaplin]

Originally posted by B-Dogg
Why send the 3 mil cash... because as most GM's agree there will be no Lux Tax again this year... so all the suns did was save 2 Mil or so and give up 2 first round picks... This trade made no sense... you give up that much to save 2 mil... maybe its time for Jerry to sale the team or sale the Diamond Backs because its becoming obvious he cant afford to run both...

Because now the Jazz only have to pay 1 million to Googs. (He had about 4 million left prorated for this year)

The Jazz won this trade big time. BIG time.

Considering that they would have had to pay Clark and Handlogten probably around 1.75 or 2 million total for the rest of the season... They now get draft picks and only have to pay out a million dollars.

They actually save almost a million bucks AND get 3 draft picks in the process.

 

[thegrahamcrackr]

Originally posted by B-Dogg
Why send the 3 mil cash... because as most GM's agree there will be no Lux Tax again this year...

Most GMs are assuming there will be a tax this season. It is next season they predict it will be gone.

 

[B-Dogg]

Chap I know why the Jazz wanted the cash... and as far as the Lux Tax they havent implemented yet and most GM's dont think its going to be implemented yet again this year....

 

[Chaplin]

Originally posted by B-Dogg
Chap I know why the Jazz wanted the cash... and as far as the Lux Tax they havent implemented yet and most GM's dont think its going to be implemented yet again this year....

There are conflicting reports, but if it ISN'T implemented, then this deal looks a lot more worse than it already is.

 

[thegrahamcrackr]

The league doesn't just decide to "implement" it.

BTW, it kicked in last season.

The luxary tax goes into affect when the total player salary is a a certain percentage of the league revenue. I want to say around 55%. It isn't overly hard to forcast, especially this late in the season.


From Larry Coons FAQ

As detailed in question number 14 , the escrow system helps to ensure that total salaries do not exceed a designated percentage of BRI. If the players are paid more than the designated percentage, then part of their salary (not to exceed 10%) is returned to the owners. However, if the players are paid so much that the maximum escrow withholding isn't enough to lower the league-wide salaries to the designated percentage, then some teams pay a tax. This is often referred to as a "luxury tax," but the CBA simply calls it a "tax" or a "team payment."

The tax is triggered when the league-wide salaries and benefits exceed approximately 61.1% of BRI (technically, it's 61.111...%, a repeating decimal. Also, it's 63.333...% in 04-05). If the league-wide salaries & benefits are less than this amount, then no team pays a tax, no matter how high their payroll. If the tax is triggered, then it is paid by all teams that are over the luxury tax threshold (called the "team escrow limit" in the CBA), in the amount by which their team salary exceeds the tax threshold (see below).

In 01-02, salaries and benefits were approximately 59.8% of BRI (and the escrow withholding was sufficient to return salaries to 55% of BRI), so the team tax was not triggered. In 02-03, salaries and benefits were 65.5%, so the tax was triggered:

 

[Chaplin]

Wow, I had no idea that was the case. Does it say what the payoffs would be?

 

[thegrahamcrackr]

Originally posted by Chaplin
There are conflicting reports, but if it ISN'T implemented, then this deal looks a lot more worse than it already is.

Yep

 

[thegrahamcrackr]

Originally posted by Chaplin
Wow, I had no idea that was the case. Does it say what the payoffs would be?