List of teams wanting to get under the Tax line this season

[wdleehi]

Let's see if we can get a list of teams wanting to make trades to get under the tax number this year.   I can think of two teams off the bat, Miami and New Orleans. 

Can you think of any other team that has basically came out and said the same thing?  If we get a list together, the lets look to see if there is possible deals to be made.





Miami
New Orleans
Utah

[Drucci]

I guess you can add Utah to the list although they want to stay competitive while getting under the luxury tax.

[wdleehi]

I guess you can add Utah to the list although they want to stay competitive while getting under the luxury tax.

You just beat me with that one.

[Roy Hobbs]

You can look at the cap situation of all of the various teams here:

http://spreadsheets.google.com/pub?key=r0EIACYJtq4Wgjl-ZmYzRug&gid=1

The teams over the tax are:

Boston (approx $14.1 million)
Cleveland ($12.2 million)
Dallas ($15.6 million)
Denver ($5.3 million)
Houston ($3.0 million)
LA Lakers ($21.4 million)
Miami ($2.8 million)
New Orleans ($572k)
New York ($13.7 million)
Orlando ($12.1 million)
Phoenix ($5 million)
San Antonio ($10.0 million)
Utah ($4.4 million)
Washington ($9.0 million)

There aren't too many teams within striking distance of getting under the tax, but I could see Phoenix, Utah, and Washington wanting to cut salary, and potentially Houston and Denver, too (in addition to the teams named by wdleehi).

[wdleehi]

You can look at the cap situation of all of the various teams here:

http://spreadsheets.google.com/pub?key=r0EIACYJtq4Wgjl-ZmYzRug&gid=1

The teams over the tax are:

Boston (approx $14.1 million)
Cleveland ($12.2 million)
Dallas ($15.6 million)
Denver ($5.3 million)
Houston ($3.0 million)
LA Lakers ($21.4 million)
Miami ($2.8 million)
New Orleans ($572k)
New York ($13.7 million)
Orlando ($12.1 million)
Phoenix ($5 million)
San Antonio ($10.0 million)
Utah ($4.4 million)
Washington ($9.0 million)

There aren't too many teams within striking distance of getting under the tax, but I could see Phoenix, Utah, and Washington wanting to cut salary, and potentially Houston and Denver, too (in addition to the teams named by wdleehi).

True.  But as far as I know, these three teams are the only ones that have basically come out and said this was their goal right now.

[BballTim]

You can look at the cap situation of all of the various teams here:

http://spreadsheets.google.com/pub?key=r0EIACYJtq4Wgjl-ZmYzRug&gid=1

The teams over the tax are:

Boston (approx $14.1 million)
Cleveland ($12.2 million)
Dallas ($15.6 million)
Denver ($5.3 million)
Houston ($3.0 million)
LA Lakers ($21.4 million)
Miami ($2.8 million)
New Orleans ($572k)
New York ($13.7 million)
Orlando ($12.1 million)
Phoenix ($5 million)
San Antonio ($10.0 million)
Utah ($4.4 million)
Washington ($9.0 million)

There aren't too many teams within striking distance of getting under the tax, but I could see Phoenix, Utah, and Washington wanting to cut salary, and potentially Houston and Denver, too (in addition to the teams named by wdleehi).

  How exactly does the tax work? The money collected all gets distributed to the lower salaried teams, right?  Is it spread equally or does it vary by how much under the threshold you are? If NO gets under the tax level do they go straight from not paying to getting $8M or so?

[Roy Hobbs]

You can look at the cap situation of all of the various teams here:

http://spreadsheets.google.com/pub?key=r0EIACYJtq4Wgjl-ZmYzRug&gid=1

The teams over the tax are:

Boston (approx $14.1 million)
Cleveland ($12.2 million)
Dallas ($15.6 million)
Denver ($5.3 million)
Houston ($3.0 million)
LA Lakers ($21.4 million)
Miami ($2.8 million)
New Orleans ($572k)
New York ($13.7 million)
Orlando ($12.1 million)
Phoenix ($5 million)
San Antonio ($10.0 million)
Utah ($4.4 million)
Washington ($9.0 million)

There aren't too many teams within striking distance of getting under the tax, but I could see Phoenix, Utah, and Washington wanting to cut salary, and potentially Houston and Denver, too (in addition to the teams named by wdleehi).

  How exactly does the tax work? The money collected all gets distributed to the lower salaried teams, right?  Is it spread equally or does it vary by how much under the threshold you are? If NO gets under the tax level do they go straight from not paying to getting $8M or so?

Each team that is under the tax gets 1/30 of the total tax paid.  The remaining money goes to the league, to be used for general purposes.  If the league gives back any of that money (which it has yet to do so, I believe), it is disbursed to all teams in equal amounts.

[BballTim]

You can look at the cap situation of all of the various teams here:

http://spreadsheets.google.com/pub?key=r0EIACYJtq4Wgjl-ZmYzRug&gid=1

The teams over the tax are:

Boston (approx $14.1 million)
Cleveland ($12.2 million)
Dallas ($15.6 million)
Denver ($5.3 million)
Houston ($3.0 million)
LA Lakers ($21.4 million)
Miami ($2.8 million)
New Orleans ($572k)
New York ($13.7 million)
Orlando ($12.1 million)
Phoenix ($5 million)
San Antonio ($10.0 million)
Utah ($4.4 million)
Washington ($9.0 million)

There aren't too many teams within striking distance of getting under the tax, but I could see Phoenix, Utah, and Washington wanting to cut salary, and potentially Houston and Denver, too (in addition to the teams named by wdleehi).

  How exactly does the tax work? The money collected all gets distributed to the lower salaried teams, right?  Is it spread equally or does it vary by how much under the threshold you are? If NO gets under the tax level do they go straight from not paying to getting $8M or so?

Each team that is under the tax gets 1/30 of the total tax paid.  The remaining money goes to the league, to be used for general purposes.  If the league gives back any of that money (which it has yet to do so, I believe), it is disbursed to all teams in equal amounts.

 So they divide the pool by 30 and not by the number of teams under the cap? Interesting. That's like $56M or so into the league coffers.

[slamtheking]

You can look at the cap situation of all of the various teams here:

http://spreadsheets.google.com/pub?key=r0EIACYJtq4Wgjl-ZmYzRug&gid=1

The teams over the tax are:

Boston (approx $14.1 million)
Cleveland ($12.2 million)
Dallas ($15.6 million)
Denver ($5.3 million)
Houston ($3.0 million)
LA Lakers ($21.4 million)
Miami ($2.8 million)
New Orleans ($572k)
New York ($13.7 million)
Orlando ($12.1 million)
Phoenix ($5 million)
San Antonio ($10.0 million)
Utah ($4.4 million)
Washington ($9.0 million)

There aren't too many teams within striking distance of getting under the tax, but I could see Phoenix, Utah, and Washington wanting to cut salary, and potentially Houston and Denver, too (in addition to the teams named by wdleehi).

  How exactly does the tax work? The money collected all gets distributed to the lower salaried teams, right?  Is it spread equally or does it vary by how much under the threshold you are? If NO gets under the tax level do they go straight from not paying to getting $8M or so?

Each team that is under the tax gets 1/30 of the total tax paid.  The remaining money goes to the league, to be used for general purposes.  If the league gives back any of that money (which it has yet to do so, I believe), it is disbursed to all teams in equal amounts.

 So they divide the pool by 30 and not by the number of teams under the cap? Interesting. That's like $56M or so into the league coffers.

Hmm, no wonder Stern has the goofy smile and drives expensive cars! 

[ssspence]

One interesting note about Houston: they could potentially add some nice talent AND get under the tax by trading T-Mac. For example, would they be willing to pay Jared Jeffries 7mil next year to save 11 mil this year by getting under the tax while adding Cuttino Mobley? If they got back a prospect or two (Chandler, Hill) they’d obviously consider it.  A deal with the Sixers of Iggy & Delambert for T-Mac, Cook and Dorsey would also get them under the tax.

[nickagneta]

Pat Riley recently made a statement that getting out of the luxury tax area gets the Heat into a position to receive some of the distributed money which could be as much as $4 million. If he is right, then the 1/30 number of the $56 million doesn't sound right. I think it's divided equally amongst only those teams under the tax level which would be 16 teams or about $4 million per team.

[action781]

Pat Riley recently made a statement that getting out of the luxury tax area gets the Heat into a position to receive some of the distributed money which could be as much as $4 million. If he is right, then the 1/30 number of the $56 million doesn't sound right. I think it's divided equally amongst only those teams under the tax level which would be 16 teams or about $4 million per team.

The $56 million is what Tim is saying the league will make from the luxury tax. That's because there are 14 teams over the luxury tax who would be paying and not receiving the money.  That $4 million figure times the 14 teams OVER the tax threshold would be $56 mill the league pockets.

Addition:  If you add up all the luxury tax to be paid, it's well over $56 million.  It's somewhere in the $120 million ballpark.  That google spreasheet that Roy posted is awesome!!  TP - Thanks!

[BballTim]

Pat Riley recently made a statement that getting out of the luxury tax area gets the Heat into a position to receive some of the distributed money which could be as much as $4 million. If he is right, then the 1/30 number of the $56 million doesn't sound right. I think it's divided equally amongst only those teams under the tax level which would be 16 teams or about $4 million per team.

  The total tax from all those teams would add up to around $130M. If you divide it by 30 you'd get just over $4M per team. The $4M for each of the teams over the threshold would go to the league (around $56M). If there were 13-14 teams paying tax and you divided it among the remaning 16-17 teams you'd get about double that per team.

[nickagneta]

Ahhhhhhhhh. I see now. Thanks guys for helping me with the confusion. TPs.