Bobcats Front Office

[Ampsportsduo]

I think some of you are being shortsighted.

[millst2]

Well dampiers contract is an immediate write off, if we kept TC we are still on the books for a yr. Carroll I can live with, his contract gets lower and lower each yr and we desperately need someone who can hit the tre. Orlando smoked our bags last yr in the playoffs with all of the three point shooters. Carroll and Damp I can see benefiting us, the third piece not so much.

[x2pacalypse]

http://msn.foxsports.com/nba/story/m...1910?GT1=39002

"There's no way, with hindsight, I would've ever called up Larry, called up Magic and said, 'Hey, look, let's get together and play on one team. But that's ... things are different. I can't say that's a bad thing. It's an opportunity these kids have today. In all honesty, I was trying to beat those guys."


call me crazy but this kind of hints at he wouldn't want a superteam like paul and melo...idk

[ohara831]

http://msn.foxsports.com/nba/story/m...1910?GT1=39002

"There's no way, with hindsight, I would've ever called up Larry, called up Magic and said, 'Hey, look, let's get together and play on one team. But that's ... things are different. I can't say that's a bad thing. It's an opportunity these kids have today. In all honesty, I was trying to beat those guys."


call me crazy but this kind of hints at he wouldn't want a superteam like paul and melo...idk

I didn't interpret it that way. I think he is saying that he knew he was a superstar, and that there were others out there. He did not want to team up with them, his competitive fire made him want to beat them. I bet Magic and Bird would say the same thing MJ and Barkley have said. The move by LeBron only means that he will never be in the same category as MJ or Kobe. He couldn't be the man who drew others to his team to win a title - he had to go to Wade's team. It simply takes away from the LeBron legacy in the long run. Even if he wins 6 titles, he will never be in the running with MJ or Kobe. Not saying he wont be one of the 15 best players ever; but he now can never reach to top of the mountain with the immortals.

[spectre]

Didn't want to start a thread, so I figured this is kind of related...

To pay or not to pay the luxury tax

On the Charlotte forums there's a guy whose pretty "up" on salary (bobfan1) and he posted this thread yesterday:

Is the Luxury Tax really that expensive?

as others have posted there is a 'hidden' tax if you pay the luxury tax.

Not only do you pay $1 for each dollar over the limit, but you don't get to participate in receiving your fair share from the teams that pay into the pool.

In 2008-2009, 7 teams paid in $87mm, meaning the other 23 teams received $3.8mm each.

In 2009-2010, 11 teams paid in $111mm, meaning the other 19 teams received $5.8mm each.

But based on all the wheeeling and dealing so far this summer, only 5 teams are over the cap: Orlando ($91mm), Lakers ($89mm), Dallas ($78mm) and Denver and Boston($77mm each). There are some massive trade exceptions, but so far these are the only teams over $70mm. I've excluded the Bobcats as they are certain to dump Dampier before the end of October.

So 5 teams would pay in $77mm to be shared by 25 teams or $2.5mm, way down from last season. And since the tax is assessed on the salaries at the end of the season, there could be some reduction from here.

So I ask, since the 'give up' to go over the luxury tax limit will be closer to $2mm than $6mm, is it worth going over the limit? Maybe MJ is being too conservative?

IMO that's a VERY informative post.

One thing of note...I'm not sure that the entire tax amount gets divided to the non-taxpaying teams. There are all sorts of smaller issues where the NBA pulls monies out...so his 2.5 million figure may be even lower.

[ziggy]

That was a strong post ny bobfan1... he needs to come on over to the BCP dark side.

[WAM9]

I was wondering about those exact numbers within the past week or so. Thanks for the info!

[Ampsportsduo]

Not only do you pay $1 for each dollar over the limit, but you don't get to participate in receiving your fair share from the teams that pay into the pool.

In 2008-2009, 7 teams paid in $87mm, meaning the other 23 teams received $3.8mm each.

In 2009-2010, 11 teams paid in $111mm, meaning the other 19 teams received $5.8mm each.

But based on all the wheeeling and dealing so far this summer, only 5 teams are over the cap: Orlando ($91mm), Lakers ($89mm), Dallas ($78mm) and Denver and Boston($77mm each). There are some massive trade exceptions, but so far these are the only teams over $70mm. I've excluded the Bobcats as they are certain to dump Dampier before the end of October.

So 5 teams would pay in $77mm to be shared by 25 teams or $2.5mm, way down from last season. And since the tax is assessed on the salaries at the end of the season, there could be some reduction from here.

Just want to point out a slight inaccuracy in this post.

Teams under the luxury tax always receive 1/30 of the luxury tax money. This way if only 1 team was below, they wouldn't receive the whole kitty Free Parking Monopoly-style.

So:

In 2009-2010, 11 teams paid in $111mm, meaning the other 19 teams received $5.8mm each.

Wrongly assumes the $111 million is split between the 19 remaining teams = $5.8 million

or

111/19=5.8

when its actually

111/30=3.7

Why is this important, because it means that not all the money going in to the luxury tax "fund" is being re-distributed to teams under the cap. In this case

19 teams under the cap multiplied by $3.8 million received = $70.3 million (of the $111 million paid)

This leaves $40.7 million in the luxury tax fund. Some or all can be used for "league purposes" but I suspect most owners know approx. how much will be used for said purposes. For the sake of argument, let's say $10 million used for league purposes. This leaves $30.7 million dollars. This money would then be redistributed to all teams (including those over the luxury tax)

So each team would receive $1 million back. For the teams under the tax, their total gained would be $4.7 million and for teams over they'd receive just the $1 million.

I point this out for accuracy, but also because depending on the amount of money going into the luxury tax fund, it can become a much bigger or smaller deal depending on the numbers.