2012-2013 Lockout Discussion Thread
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08-13-2012, 06:58 PM
Join Date: Mar 2002
Location: New York
The NBA made the luxury tax so punitive that James Dolan doesn't want to pay it. Dolan has shunned paying taxes the last few years.
The Knicks, on the other hand, have nothing to show for spending a league-most $195.29 million in luxury taxes since 2003.
New York has avoided the luxury tax the past two years, but paid out a record $45.14 million in 2006-07 for a 33-49 season.
They passed on matching Lin because of the new luxury taxes kicking in beginning in 13-14.
Beginning with the 2013-2014 NBA Season, though, the NBA will implement a much harsher luxury tax system. Under that system, a team that exceeds the luxury tax threshold by $25 million would have to pay a tax bill of about $64 million.
A team $20 million over the threshold would owe $45 million, while a team $10 million over the threshold would owe $16.25 million.
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