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View Full Version : Why is it such a big deal to hit the $74 million tax number?



NYSpirit1
07-04-2012, 11:40 AM
Tax levels from 2013–14
Amount over tax threshold Standard tax Repeat offender tax
$5 million or less $1.50 $2.50
$5 million to $10 million $1.75 $2.75
$10 million to $15 million $2.50 $3.50
$15 million to $25 million $3.25 $4.25
---Wikipedia

I don't understand why this is such a big concern for owners in the new CBA. I see owners like Dolan, Buss and even Prok from the Nets not wanting to hit that $74 million number that triggers this.

So really, owners with over $10+ billion, don't even want to hit $10 mil over at $84 million, because even (realistically) at worst, they're have to pay $2.75 for every dollar over, which equates to $27 million extra in luxury tax. It's kind of ridiculous this owners seem so scared of this number, when they have so much money in the bank.

Max.This
07-04-2012, 11:45 AM
At the end of the day its a business. Obviously to us it would be a no brainer to throw money in for the opportunity to be great that season but these owners treat this like a business. I have never heard of a business owner ecstatic about losing profit

Phenomenonsense
07-04-2012, 11:46 AM
That's the problem with poor people, they don't know how to keep their money. The attitude you describe explains why lottery millionaires lose their money.

waveycrockett
07-04-2012, 11:48 AM
Are you crazy? Thats 2-3x every dollar they charge if you go above and there is like a $20 Million penalty on top of that.

waveycrockett
07-04-2012, 11:48 AM
At the end of the day its a business. Obviously to us it would be a no brainer to throw money in for the opportunity to be great that season but these owners treat this like a business. I have never heard of a business owner ecstatic about losing profit

Whats the big deal about throwing money in the garbage?

310Casper
07-04-2012, 11:52 AM
This is why you're poor.

mvb815
07-04-2012, 11:55 AM
they didn't get where they are today handing out free 27 million dollar checks

LongIslandIcedZ
07-04-2012, 12:04 PM
There is a reason they became billionaires

YoungOne
07-04-2012, 12:08 PM
and you lose full MLE and bi-annual exception.

Mr.B
07-04-2012, 12:32 PM
It's not monopoly money. Billionaires didn't become billionaires by being ok with just giving away tens of millions of dollars every year. No owner is going to want to pay the same amount in luxury tax as his payroll over a long period of time.

Chavacano
07-04-2012, 12:51 PM
There is a reason they became billionaires

This.

Donuts365
07-04-2012, 12:55 PM
this is why you're poor.

this

Kobe2324
07-04-2012, 12:56 PM
As mentioned this is a business for most owners not a pass time, it makes perfect sense to avoid that tax, especially a team like the lakers that are so much over. I get that the Buss family is rich but again its a business.

justinnum1
07-04-2012, 01:02 PM
so, someone 15mil over the tax as a repeat offender would have a tax bill of over 60million dollars.

Sinestro
07-04-2012, 01:14 PM
No one likes to overpay even billionaires

Mr.B
07-04-2012, 01:24 PM
so, someone 15mil over the tax as a repeat offender would have a tax bill of over 60million dollars.

Yup, that is why I don't see the Heat resigning all three of those guys when their contracts are up in 2 years. Obviously they keep Labron but not so sure about an aging Wade and Bosh. They maybe keep two but not all three. Same with the Nets and Knicks. Also why OKC won't resign Harden and Ibaka.

-Kobe24-TJ19-
07-04-2012, 01:37 PM
another stupid thread by OP

even jerry Buss is cutting costs like crazy

IndyRealist
07-04-2012, 01:42 PM
That's why they're billionaires and you're not.

slugger82685
07-04-2012, 01:46 PM
what a stupid post, obviously the OP is uneducated

llemon
07-04-2012, 01:52 PM
and you lose full MLE and bi-annual exception.

I also limits S&T capabilities.