Luxury Tax

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

As a major, and repeat offender of the luxury tax, I voted for the harsher rule even though it goes against my team's best interest. I think the new rule is best for the league's long term viability which in the long run is what I want. I think the new rule is a nuclear deterrent against handing out terrible contracts and allows teams that manage teams with worse records and low salary caps to be able to compete with everyone else. This way, the teams with the FAs will have consequence for resigning players for over market value.

I vote for the new rule. Harder penalties for larger offenses.

I voted for as is. Mainly because we just made it harder to get points. And now you could have to rack up 68 pts lol No planning on having that much tax, but still. Unless you got a Camby or someone like that, you aren't making alot of points.

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Originally Posted by IamQuailman

I voted for as is. Mainly because we just made it harder to get points. And now you could have to rack up 68 pts lol No planning on having that much tax, but still. Unless you got a Camby or someone like that, you aren't making alot of points.

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True, but thats why you should get it up to 30 Million over the cap. Who's going to want to pay 68 points? The point of the tax is to be a deterrent not a slap on the wrist. 32 points for being that flagrantly over is a slap on the wrist, but that's why we all get a vote! Thanks sir.

So if this polled ended now, then by nolaslim standards we keep it the same since over half hasn't voted? :)

I'm actually surprised by the results so far. Really surprised By who voted for what ^^.

Voted for "as is" even though the new rule makes way more sense.

again this setup will for sure be the death of me, but I think it makes the most sense for the league. Also how was I supposed to know Ray Allen's contract was going to start at 14 million, it didn't make sense based on experience or 120% of his previous salary.

Quote:

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Originally Posted by ohnosono

Voted for "as is" even though the new rule makes way more sense.

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Because of the timing to implement it?

I voted for new rule. I do think the previous one was a bit on the light side. But I had already seen it affect some teams such as the Rockets trading Wally (I ended up costing myself points in that one doh!). That being said, I find this rule rather harsh but that is exactly what it is meant to be. How in the world does a team get to 32 mil over the cap anyway?????


It is best to implement it now before some of these big resignings take place than after they have happened.

I was using 32 mill as a very very extreme example because it broke down all the cap raises. I don't think most people will break the 20 mill area. Maybe one person here and there.

I voted yes because I think that'll be better for the league

timing? its the worst timing for me if you consider what I have, Kobe, Hill and Cassell are all free agents, and I have McDyess earning 12.8 now(goes up every year)

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Originally Posted by BallSoHard

Because of the timing to implement it?

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Nah, I just knew it would pass and I'm indifferent anyway.

remember kids I have more than 20 million in expiring contracts, prospects and picks ;)

how about we include all lotto teams in the point distribution? just talking about my team for example, i didnt make the playoffs so i missed out on those points and i wasnt in the bottom 10 so i didnt get those points. im stuck in the middle and if it werent for dwight howard getting the ROY and other points i wouldnt have gotten much. what do you guys think?

If we do that it will cut back on the points all teams get. Just want to make sure this is a direction the league would want to go.

by adding 3 more teams? those teams should just get less the others. i mean those teams dont get anything no playoff points AND no bottom 10 points. i just dont see that being fair IMO

If we are pretty much doubling the tax, I don't see the problem with giving 3 more teams a share. If I was a middling team at the moment and thought I either had no shot at playoffs or no shot in them I would consider tanking to get points.

I also want to add that a reason I voted for the new system was that I think as much as we tried the new point system still significantly favors the top teams. This is not a complaint on the point system, it's better than before, but a higher tax would even it out even more.

It's not doubling ..

I guess it's not too much to ask could we get a rundown of what the taxes would have been this season under the new plan and the payouts if 3 more teams were added?

I'm starting to walk back a bit from my previous statement because I hadn't thought about less teams paying (or the possibility of teams scaling back and paying less) and the fact that either getting in the playoffs or a chance in the lottery is reward in itself.

I don't have a problem with adding the other 3 non playoff teams into the point distribution. They would just have to recieve less points.

exactly im not talking about revenue sharing :hihi: just adding the 3 teams that arent included this year.

Quote:

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Originally Posted by Eazy-P

I don't have a problem with adding the other 3 non playoff teams into the point distribution. They would just have to recieve less points.

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I think it's only fair that all lotto teams get points.

Added to the orginal thread at the bottom of the old tax and new tax side by side for this year.

When you add 3 more teams to the mix, the average points go from 20 to 15. It'll make a dent.

yeah it will make a dent but its not fair for there to be a penalty for almost making the playoffs but not in the bottom 10 teams. im not just saying that because i was in this position this year.

I still think it would be fair to give them points even if its just 1 or 2 points.

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Originally Posted by Eazy-P

I still think it would be fair to give them points even if its just 1 or 2 points.

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It's weighted, it doesn't work like that.

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Originally Posted by BallSoHard

It's weighted, it doesn't work like that.

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How many points would the 3 teams get?

What's the decision on this?

good question

Well there's 29 teams and 12 voted yes and 4 voted no. So by default all of the non voters vote for the current system even though the votee says 75% to 25% THUIS IS MERICA AND THATS NOT HOW WE WORK. I'm kidding. Unless commish states otherwise the new system will be in effect.

With all the active GMs, I can't imagine we can't get some more people involved on this.

If 15 votes needed, that 12 is a strong start for the 99%ers
Step up your game, the 1%

bump to try to get the vote in before the season

I'm ok with the old rule.