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View Full Version : Should the NBA Abolish the Luxery Tax? JA Adande says "Yes"



DreamShaker
02-19-2009, 09:38 AM
Here's a more serious proposal: abolish the luxury tax. It was an artificial creation in the first place, implemented to keep big spenders from overwhelming the league, designed in part because the owners couldn't be counted on to exercise fiscal responsibility all on their own. Now that the real world has encroached on the NBA the desire to save money, they can keep payrolls down naturally. Teams won't spend what they literally don't have. No need to add punitive taxes that have become the driving force behind the trade market.

It's one thing to create cap space. At least that brings the hope of signing better players one day. There's no excitement generated by slipping below the tax threshold, unless you're one of those people who gets thrills from reading a spreadsheet file.

Without the luxury tax teams wouldn't feel compelled to cut their payroll to a target number. There might not be the urgency to dump salaries ... and we could get back to arguing over who got the best players in a trade.


http://sports.espn.go.com/nba/dailydime?page=dime-090219

DreamShaker
02-19-2009, 09:39 AM
I agree the Luxury Tax is ridiculous and needs to go. Watching a trade deadline when Raef Lafrenze is more coveted than Amare Stoudamire it's becoming pathetic.

RaysFan
02-19-2009, 09:40 AM
I think they should raise it a little bit over the next year to help some of the owners out in these tough financial times, but no way should it be abolished.

prodigy
02-19-2009, 09:48 AM
no no no no no no no

I don't wanna see the NY yankees in basketball.

futureman
02-19-2009, 09:55 AM
I think they should raise it a little bit over the next year to help some of the owners out in these tough financial times, but no way should it be abolished.

I heard rumors on a local radio show that they are thinking about lowering it in order for teams to retain season ticket holders.

pebloemer
02-19-2009, 10:38 AM
"Without the luxury tax teams wouldn't feel compelled to cut their payroll to a target number."

Isn't that the point of the luxury tax in the first place? Argument just seems redundant. Luxury tax makes teams who use money frivolously pay for it. Keeps owners honest. It also helps the small market teams as they can cash in a cheque at the end of the season because of certain owners spending.

In my opinion the luxury tax is necessary for the smaller market teams in the league to compete.

The case of the Hornets interests me as they are a smaller market team who is losing their chance to compete because of the luxury tax. Now this year New Orleans is in fact under the luxury tax, but next year when Paul's new salary kicks in, they are over the tax.

Based on: http://www.shamsports.com/content/pages/data/salaries/hornets.jsp
http://hoopshype.com/salaries/new_orleans.htm

Next year is when they have a problem. Now I could look through their roster and see where they may have overpaid (Stojakavic, Peterson, Daniels). But they also have David West at a bargain making 9 million.

For me it comes down to this. When things go very well for a small market team like it has for New Orleans, teams should be allowed to make a mistake or two with salaries and still be able to compete against the teams with more money to spend (like Dallas) and not get penalized by the luxury tax. However, without a luxury tax, teams with bottomless pocketbooks can continue to spend more money and slowing working their way far above the salary cap and skewing the equality between teams in the league. As it stands, I think that is the greater of two evils for the league to deal with and with the rules in place as they are, New Orleans should be spending money more wisely.

The system shouldn't force New Orleans to do that, but as long as there are Mark Cuban's in the league it will be the reality. For most smaller market teams, I think the luxury tax rule is beneficial. At least with the rules clearly stated, owners and GM's can point the fingers at themselves for throwing money around the way they do.

prash
02-19-2009, 12:45 PM
The NBA lux tax is the model example that other leagues should follow.

Any F1 fans in here know what its like when one or two teams have ridiculous budgets while every other team is almost losing money trying to keep up.

IndyRealist
02-19-2009, 01:00 PM
His argument for abolishing the tax is that teams are trying to get under it anyway? So if it's there, and everyone's under it, then why get rid of it? It's a safeguard against big markets completely dominating smaller markets (and they still do somewhat, even with the tax). His argument for teams "self regulating" is exactly what got the USA in the ridiculous financial crisis it's in right now. Banks were supposed to regulate themselves, so were car manufacturers, and the housing industry. Look where it got us.

The only way the NBA should abolish the luxury tax would be to have a hard salary cap, which would make the tax redundant.

Edit: I really think JA Adande just likes to hear himself talk, and see his name show up on Google.

Draco
02-19-2009, 01:03 PM
Keep the tax. Some owners, like Dolan, are richer than others and can afford to spend however bad the economy is.

And interestingly, the league is planning on lowering the cap.

DenButsu
02-19-2009, 01:04 PM
"Without the luxury tax teams wouldn't feel compelled to cut their payroll to a target number."

Isn't that the point of the luxury tax in the first place? Argument just seems redundant. Luxury tax makes teams who use money frivolously pay for it. Keeps owners honest. It also helps the small market teams as they can cash in a cheque at the end of the season because of certain owners spending.

In my opinion the luxury tax is necessary for the smaller market teams in the league to compete.

Beat me to it. Great post :clap:

IndyRealist
02-19-2009, 01:21 PM
Very true, that luxury tax check at the end of the season is probably the difference between a small team making money and losing money.

tkshy
02-19-2009, 01:34 PM
Basketball, Baseball, and all major sports should do what the NFL has done. No luxury tax, profit sharing, and a HARD CAP. Look how competitive the NFL is and the parity (for the most part) That's fun to watch. Now if only the NFL could figure out the rookie payscale...LOL!

DenButsu
02-19-2009, 01:47 PM
Basketball, Baseball, and all major sports should do what the NFL has done. No luxury tax, profit sharing, and a HARD CAP. Look how competitive the NFL is and the parody (for the most part) That's fun to watch. Now if only the NFL could figure out the rookie payscale...LOL!

Sorry, not trying to be the grammar police, but that's one of the best vocabulary mix-ups I've ever seen. --- I'm not joking, it's awesome.

(parity)

Chicagofaithful
02-19-2009, 01:49 PM
as much as i would love if the luxury tax was lifted. It just simply wouldnt be fair. I'm a bulls fan and we would have so much money (3rd largest market) compared to say OKC or memphis. It just wouldnt provide equal opportunity, could you imagine what Mark Cuban would do if there was no tax? lol he'd put an all star in every position.

static_inferno
02-19-2009, 01:58 PM
they should keep the luxury threshold but raise it by a lot. you don't want the Knicks just signing all the superstars like the Yankees do.

tkshy
02-19-2009, 02:06 PM
Sorry, not trying to be the grammar police, but that's one of the best vocabulary mix-ups I've ever seen. --- I'm not joking, it's awesome.

(parity)

Thanks Mrs. Krabappel!
LMAO!

jaydagreat
02-19-2009, 02:12 PM
no no no no no no no

I don't wanna see the NY yankees in basketball.

lol, scared cleveland fan affraid we will buy ur players services. lmao. too funny

pebloemer
02-19-2009, 02:14 PM
Basketball, Baseball, and all major sports should do what the NFL has done. No luxury tax, profit sharing, and a HARD CAP. Look how competitive the NFL is and the parity (for the most part) That's fun to watch. Now if only the NFL could figure out the rookie payscale...LOL!

I definitely really like the NFL system as well.

prodigy
02-20-2009, 11:40 AM
lol, scared cleveland fan affraid we will buy ur players services. lmao. too funny


Nope. cavs have one of the richest owners in this leauge. It would help my team. But im not for playing like that.

Hawkeye15
02-20-2009, 12:43 PM
For Miami, NY, and LAL fans, I am sure they would love to see it go. For Minnesota, Milwaukee, OKC, etc, I think they would rather it stay. It would be bad for basketball in my opinion. I would stop following it if I had to see the Lakers and Knicks in the finals every year.

HOZ THE KNICK
02-20-2009, 12:44 PM
i agree ther should be no cap teams should be able to spend how much they like and not be penalized for it.

Raidaz4Life
02-20-2009, 12:49 PM
I'm a Lakers fan and I would hate to see the tax go, talk about unfair. To me this is the perfect system.

montazingmvp
02-20-2009, 01:02 PM
ja just wants to see the lakers have even more of an advantage then they already do...lol

but seriously the majority of owners really aren't being hit too hard by the bad economy..do we really want to see the knicks signing lebron james, dwyane wade and chris bosh...the luxury tax is one of the many things (but more important things) that makes basketball much better than baseball.

montazingmvp
02-20-2009, 01:04 PM
i agree ther should be no cap teams should be able to spend how much they like and not be penalized for it.

says the knick fan...prick alert

HOZ THE KNICK
02-20-2009, 01:17 PM
says the knick fan...prick alert

**** you watch your damn mouth lil boy..:mad:

mrblisterdundee
02-20-2009, 02:57 PM
I like controlling salaries at a certain point. These basketball players don't deserve a fraction of the money they do make. There is no reason they should demand more. If I could work it out with other basketball leagues around the world, I would set a very low market price so that no basketball player ever makes more than six figures.

IDB Josh M
02-20-2009, 05:06 PM
The NBA and NFL have a great system. The NFL is very competitive (with the exception of the Detroit Lions). And if you look at things closely in the NBA, the superstars of the league are spread out almost evenly. OKC has Durant, Miami has Wade and beasly, Toronto has Marion and Bosh, NY has Kryto-nate, Los Angeles has Kobe and Pau, Phoenix has Shaq and Nash, Cleveland has Lebron, Boston has the big three.

All it boils down to is which team can manage, train, and force their superstars to work together with each other and with their role players. Of course the standings will tell a different story of who the better superstar is, but I think that is because of poor team management than inability to buy up talent.

Although, the MLB, which is notorious for not having a luxury tax, allows the bigger markets to spend like a kid in a candy store. But then again, just because the yankees have CC, Teixara, A-fraud (giggle) and Jeter doesn't mean they will have a World Series run. If the Yankees have swept the October classic for the last decade while going 152-10 a season, then an argument in favor of a luxury tax would stand.

Where is my ramble going? No reason to change the status quo.

thornz503
02-20-2009, 05:23 PM
Paul Allen would absolutely own the NBA if there were no luxury tax. . .he already buys up draft picks like it's nothing.

Hustla23
02-20-2009, 05:38 PM
Man I wish the NBA abolished the luxury tax and the cap.

The knicks spent 100 million dollars on guys like Stephon, Richardson, Curry, and Crawford.

I wonder what they'd pay for guys like Lebron James and Kobe haha :sigh:

Hustla23
02-20-2009, 05:38 PM
Paul Allen would absolutely own the NBA if there were no luxury tax. . .he already buys up draft picks like it's nothing.

Yeah word !

I hate Paul Allen.

hotpotato1092
02-20-2009, 05:46 PM
I refuse to take JA Adande seriously as he works for ESPN, the worldwide leader in analysts who know nothing about sports

T.O.Fan:)
02-20-2009, 06:25 PM
There should be a hard cap...nhl,nfl, and teams should also be able to resing their star players none of this i don't want to play for small market team crap.

Flash812
02-20-2009, 08:15 PM
Having a hard cap in basketball is a bad idea IMO. That punishes teams that make good judgments on players and when players contracts come to an end some teams couldn't sign their own guys becuase of the cap. The NFL works becuase the cap is very large and their are a ton more players on teams making it easier to deal with a loss. I think the tax should start at $70-75 million and then instead of giving up $1 for $1 when going over the threhshold it should be a 50 cent tax for every dollar over spent.

ramansingh3
02-22-2009, 01:49 AM
http://sports.espn.go.com/nba/dailydime?page=dime-090219

Yes, especially in these hard economic times.