We;ve had some discussion on this and i think we came to a consensus concerning the new Luxury tax rule. I wanted to make sure the league and I agree'd on the terms of the new Lux Tax deal.
The options are:
Leave as is:
-1 Point per every million over the luxury tax. You get a 5 Million dollar threshold before having to pay the tax.
or
New more harsh rule and penalty:
1 Point per every million you are over the luxury tax threshold.
Threshold now set at 5.7 Million to offset LLE and MLE.
1 Additional point for every 10 million over the tax.
For example (completely fabricating these numbers):
Los Angeles Lakers are 32 million over the cap.
Lakers owe-
10 Points for 0-9.999 Million over
+20 Points for 10-19.99 Million over
+30 Points for 20-29.99 Million over
+8 Points for 30-32 Million over
68 Points Grand total Owed
***Under the old rule, only 32 Points would have been owed***
Penalties for not being able to pay the Tax:
MLE and LLE not able to be used
Can't go over salary cap to resign non bird year players
No training camps can be used until balance is paid
Balance still owed
Old rule versus new rule with this year's salary:
old new
Sacramento Kings ($16,788,462) 32 38
Boston Celtics ($14,335,773) 28 32
Seattle SuperSonics ($13,462,164) 26 29
Los Angeles Lakers ($12,371,238) 24 26
Golden State Warriors ($12,005,760) 24 26
Minnesota Timberwolves ($11,449,465) 22 23
Philadelphia 76ers ($10,583,253) 20 20
Washington Wizards ($8,364,917) 16 16
Memphis Grizzlies ($6,348,083) 12 12
total 204 222