Sħãlïq™ Posted August 16, 2012 Report Share Posted August 16, 2012 LAKERS MAY FACE A LUXURY TAX PAYMENT OF $115 MILLION IN 2014-2015This according to ESPN’s Henry Abbott and luxury tax guru Larry Coon. The latest collective bargaining agreement was designed to keep teams under the salary cap – while going over is permitted under the “soft” cap rules, mostly to re-sign superstars and keep teams together for years, ultimately any team with the money can go well overboard. And that’s what the Lakers have done this season. Here are some numbers to swallow for 2012-2013. Dwight Howard: $19,261,200Kobe Bryant: $27,849,149Pau Gasol: $19,000,000Steve Nash: 8,900,000Metta World Peace: $7,258,960 And that’s just the starting five. Yikes. For a further breakdown, here’s Larry Coon, via Henry Abbott of ESPN: “The Lakers will have a tax bill of around $30 million next July, and in retrospect, will view this season as their salad days — it’s the last one where the tax rate is dollar-for-dollar. Starting in 2013-14 the new “incremental” tax takes over, where being $30 million above the tax line will mean paying a whopping $85 million tax bill. And it gets worse. Starting in 2014-15 teams will pay an even higher rate for being repeat offenders — defined as paying tax in at least three of the four previous seasons. A team $30 million over the tax line will pay — brace yourself — an additional $115 million in luxury tax. After adding up their payroll, luxury tax bill and revenue sharing contribution (projected to be $49.4 million in 2013-14), even the Lakers have to stop to consider whether this simply can be written off as the cost of doing business — and that’s the future if they’re paying players with salaries like Bryant, Howard, Gasol and Nash.”Full Story Quote Link to comment Share on other sites More sharing options...
Owner Real Deal Posted August 16, 2012 Owner Report Share Posted August 16, 2012 They will take one long look at Gasol this upcoming season, and if he doesn't rebound from his last two poor playoff performances, they will look to deal his contract before the start of the 2013-14 season (it will be an expiring, by the way) OR they will use the amnesty on him (which is less likely). That will knock off $19 million in salary, and it won't be THAT significant because we'll still be paying Kobe, Howard (assuming we sign him) and Nash, possibly Ron...but it will help, nonetheless. If they want to go smaller, they can always hit Ron with the amnesty. He'll be making around $7-8 million. Quote Link to comment Share on other sites More sharing options...
Lkr Posted August 16, 2012 Report Share Posted August 16, 2012 Not a big deal when our tv contract is worth more than every other team Quote Link to comment Share on other sites More sharing options...
Owner Real Deal Posted August 16, 2012 Owner Report Share Posted August 16, 2012 Not a big deal when our tv contract is worth more than every other team$3 billion for 20 years, so you're talking $150 million/year just for the TV deal. That's nuts. Quote Link to comment Share on other sites More sharing options...
Check my Stats Posted August 16, 2012 Report Share Posted August 16, 2012 These new lux tax penalties are even more beneficial to the big markets. Only teams like LA could possibly foot a bill like that, you've got to imagine. Still wish we could have got some form of a hard cap in the NBA. Oh well. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.