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09-21-2012, 12:22 AM
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Join Date: Nov 2005
Location: Pac NW
Country: United States
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Originally Posted by RedWings19405 View Post
Found Fugu post from over on the business of hockey board I was talking about.

From Fugu post #5:

Each league is broken down in Post #6 by Fugu as well.

It looks better in the actual forum, cannot transfer the quote as well, don't know how to do without dropping some of the text. But really kind of fascinating and worth the time to click on the link and read in my opinion.
You can quote a post in the other thread, then cut and paste it into any thread. By clicking on the little red box, you can view the post in the original thread. Or-- click on the post # and you'll just get a window with only that post. Copy the link in the navigation bar.

Here's more info on the NBA system, which is far more complex than anything the NHL has considered, being both a cap and luxury tax system:

Originally Posted by Fugu View Post
There's a lot more meat to the NBA's hybrid of cap + luxury tax system:
NBA owners who like to pair eight-figure player salaries with their caviar are bracing for the party pooper known as more punitive luxury taxes, set to arrive in the 2013-14 season. Designed to expand the league's middle class and reduce the number of bloated contracts, the tax may force big spenders such as the Lakers to reconsider just how much they are willing to lavish on star players.
This is the last season the Lakers will pay a dollar-for-dollar penalty for exceeding the luxury-tax threshold, meaning that their league-high payroll of $99.2 million will cost them an additional $28.9 million in taxes, because that's how far they are above the $70.3-million tax level. The tax will raise the tab for their player costs to $128 million.
Starting next season, the tax burden gets significantly heavier. NBA teams must pay a $1.50-to-$1 ratio for the first $4.99 million they are over the luxury-tax threshold, a $1.75-to-$1 ratio for being $5 million to $9.99 million above the threshold, a $2.50 ratio for $10 million to $14.99 million over, and a $3.25 ratio for $15 million to $19.99 million beyond the threshold.
Teams that are $20 million or more over the tax level accrue additional penalties, increasing by 50 cents per dollar for every $5 million.
Those extra pennies can add up to millions, particularly for teams with multiple all-stars.,6834158.story

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