The Tax Bill Comes Due...

[Ryle]

Friday, July 13, 2007
Knicks top list of teams to pay luxury tax

By Marc Stein
ESPN.com

The New York Knicks can't be feeling very lucky on this Friday The Thirteenth.

By the end of this business day, you see, each of the NBA's five luxury-tax-paying teams from last season will have received an official invoice from the league stating the "net" amount they must remit.
In the Knicks' case?
The payment due by July 25, according to a league memo distributed this week to all 30 teams: $45 million and change.
That's $45-plus million for a team that went 33-49 and missed the playoffs for a third successive season. It was team president Isiah Thomas' first season as Knicks coach, following a 23-59 nightmare under Larry Brown, with New York going 4-14 to slip out of playoff contention after Thomas received a contract extension on March 12.
The next closest tax bill is the Dallas Mavericks' $7.2 million.
Teams that carried a payroll higher than $65.42 million for the 2006-07 season are required to pay a dollar-for-dollar tax on every dollar over that threshold. The following five teams are required to pay as follows:
1. New York $45,142,002
2. Dallas $7,204,968
3. Denver $2,022,418
4. Minnesota $998,536
5. San Antonio $196,082

The 25 non-tax-paying teams, meanwhile, will each receive 1/30 of the cumulative tax amount, which computes to nearly $1.9 million per team. Marc Stein is the senior NBA writer for ESPN.com. To e-mail him, click here.


Ouch....hey Kings get almost 2 mill out of the deal

 

[Bricklayer]

Its not long now until the tax pretty much obsoletes himself. Teams treat that as such a hard cap -- not only paying extra money, but losing the millions they would get for being under it (think that article had it wrong BTW -- only the 25 teams UNDEER the tax get paid the share, so shoudl be 1/25th, not 1/30th) that as soon as the Knicks let the rest of those biggees bleed off (and they are already down tens of millions from last year -- they proabbly really DO feel lucky), there will probably only be ahandful of teams a handful of dollars over the limit every yer. Mayeb $10-$20mil total of tax payers. Like the Yankees, the Knicks could use the massive NY market to still go on being the only superpayers, but they seem disinclined to do so. Maybe in a few year Paul Allen will open up the books to keep all that young talent and make title runs.

 

[uolj]

It cost the Spurs almost 2.5 million dollars to pay whoever they gave that last $200,000 to. I hope they got something good out of that, like at least a championship or something.