Bonn1997 wrote:

Rookie wrote:

Solace wrote:

SlimChin wrote:

Solace wrote:http://www.nypost.com/p/sports/knicks/knicks_balk_year_tax_bill_salary_8gqxzMNE1athYH35vyztZM?utm_medium=rss&utm_content=Knicks

Knicks soap opera continues with Lin contract talks, Kidd's DWI arrest
Knicks Blog
Berman on Twitter
By MARC BERMAN
Last Updated: 6:42 AM, July 16, 2012
Posted: 1:33 AM, July 16, 2012

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LAS VEGAS — Is Jeremy Lin worth $58.3 million in 2014-15?
If the Knicks were to match the Rockets’ poison-pill offer sheet, under the new CBA’s vicious luxury-tax penalties, owner James Dolan could pay that amount for Lin just for the 2014-15 season.
That astronomical bill is why the Knicks sought a cheaper point-guard solution to pair with Jason Kidd. They were finalizing a sign-and-trade with Portland yesterday that would make Raymond Felton a Knick again in a three-year deal that is estimated at close to
$10 million with a player option for a fourth year.

JASON SZENES/NY POST
HARVARD ECONOMICS: Jeremy Lin launched himself from the Ivy League into the NBA spotlight with dazzling play at the Garden last season, but the price for the luxury-tax-paying Knicks to retain him — pushing $60 million in 2014-15 alone — could be too steep.

A source told The Post Saturday night that after the Felton deal, the Knicks will not match Lin’s back-loaded three-year, $25 million offer sheet from Houston.
Lin’s potential departure after lighting up the Garden in February and March plus the news of Kidd’s DWI arrest yesterday in the Hamptons kept the Knicks in a familiar role as the NBA’s biggest soap opera.
It was doubtful the arrest would have any impact on the decision whether to retain Lin.
At the Las Vegas summer league yesterday, Knicks coach Mike Woodson dodged the media and refused to discuss the latest developments.
“I can’t talk today,’’ Woodson said. “I can’t talk about it.”
OPINION: KIDD'S ARREST DISGRACEFUL
KIDD ARRESTED FOR DWI
Knicks general manager Glen Grunwald never showed up to the arena and was said to be back in the hotel crunching numbers. The Knicks have until 11:59 tomorrow night to match Lin’s offer sheet. They could not make a move on Lin until the Felton deal became official.
Just four days ago, Woodson gushed that the Knicks would “absolutely’’ match the Rockets’ offer sheet and said Lin would be the starter at point guard to open training camp.
But that was before Lin secretly flew to Las Vegas to change the offer sheet and turn a four-year, $28 million deal with $19 million guaranteed into a fully guaranteed three-year, $25 million contract — with the final year a balloon payment of $14.9 million that Carmelo Anthony called “ridiculous’’ yesterday.
How ridiculous? The Knicks are expected to be over the luxury-tax threshold for three straight years by 2014-15, and repeat taxpayers will be subject to the harshest of luxury-tax penalties.
If all of Lin’s $14.9 million salary comes in over the threshold, the first $5 million will be taxed at a 2.5-to-1 ratio. The next $5 million will be taxed at a 2.75-to-1 ratio. The final $4.9 million is taxed a 3.5-to-1 ratio.
The math shows the tax alone on Lin’s final year would be $43.4 million, meaning the entire bill that season could be $58.3 million.
Dolan actually might have matched the offer had it been done above board. But as reported by The Post, the Knicks were furious Lin renegotiated the contract after they had told him they would match it, knowing how deadly it would be financially to the organization’s coffers because of the tax.
Dolan is all about loyalty and the revamped offer sheet rubbed him the wrong way.
As long as Kidd isn’t thrown in jail, the Knicks are set at point guard this season with a three-headed monster of Felton — who desperately wanted to return to the Garden after working great with Amar’e Stoudemire in 2010-11 — Kidd and Spanish leaguer Pablo Prigioni.
marc.berman@nypost.com

If this math is accurate, yeah, Lin is gone.

Yeah and? Money has never been an issue with Dolan until now? Dolan writes checks—always has.

We've never had a payroll as high as this would bring us with the new luxury tax. You are talking about a Knicks team that might cost I dunno, $140 million for that third year, after luxury tax. Will Dolan really pay that? Your guess is as good as mine.

figures like that can have a negetive projection on MSG's stock as well....so if the stock plummets due to negative profits, the costs keep compounding

OR If Lin draws in money over the next 2 years at a rate even remotely close to last year, they make a huge profit on him, can invest that money, and by year 3, have made a huge amount off him.

alright, not being savvy in the ways of the market it would appear that MSG stock is already dropping...so, as of right now in the short term MSG has already lost 49M in market capitalization.
-----------------------------------------------------------------------------------------

"Much has been made already about the New York Knicks decision — reportedly at this point — not to sign Jeremy Lin. But another way to look at the move is that the Knicks’ owner, Madison Square Garden Inc. MSG -1.83% , has already lost more money in market capitalization than the cost of Lin’s contract.

The 64-cent drop in MSG stock equates to a market capitalization loss of about $49 million.

Estimating the cost to MSG of matching the Jeremy Lin contract offer from the Houston Rockets is a bit trickier. The roughly $25 million over three years that the Knicks would owe the Harvard graduate is almost irrelevant, because the Knicks will be paying the NBA’s full salary cap, and then some, with or without Lin. The only real direct cost comes from the luxury-cap implications.

This piece by Business Insider does a pretty good job of laying out different scenarios for 2014, when the Lin contract could be considered, to use Carmelo Anthony’s terminology, “ridiculous.” The one this author feels would have been most likely is not actually presented — getting rid of Marcus Camby and Raymond Felton, and keeping Iman Shumpert — but the approximate difference in luxury tax between keeping Lin or not is somewhere in the order of $35 million to $40 million.

And that’s assuming no business impact at all from the revenue side. (Even if a Lin-inspired boycott by Knicks fans is short-lived, it does seem there will be at least some negative revenue element from not bringing back the popular player.) And when you factor in the time value of money — e.g., money now is worth more than money later — the Lin non-signing is even more a negative for MSG stockholders." http://blogs.marketwatch.com/thetell/2012/07/16/mondays-msg-market-cap-drop-would-have-paid-for-lin-contract/

Rookie wrote:

alright, not being savvy in the ways of the market it would appear that MSG stock is already dropping...so, as of right now in the short term MSG has already lost 49M in market capitalization.
-----------------------------------------------------------------------------------------

"Much has been made already about the New York Knicks decision — reportedly at this point — not to sign Jeremy Lin. But another way to look at the move is that the Knicks’ owner, Madison Square Garden Inc. MSG -1.83% , has already lost more money in market capitalization than the cost of Lin’s contract.

The 64-cent drop in MSG stock equates to a market capitalization loss of about $49 million.

Estimating the cost to MSG of matching the Jeremy Lin contract offer from the Houston Rockets is a bit trickier. The roughly $25 million over three years that the Knicks would owe the Harvard graduate is almost irrelevant, because the Knicks will be paying the NBA’s full salary cap, and then some, with or without Lin. The only real direct cost comes from the luxury-cap implications.

This piece by Business Insider does a pretty good job of laying out different scenarios for 2014, when the Lin contract could be considered, to use Carmelo Anthony’s terminology, “ridiculous.” The one this author feels would have been most likely is not actually presented — getting rid of Marcus Camby and Raymond Felton, and keeping Iman Shumpert — but the approximate difference in luxury tax between keeping Lin or not is somewhere in the order of $35 million to $40 million.

And that’s assuming no business impact at all from the revenue side. (Even if a Lin-inspired boycott by Knicks fans is short-lived, it does seem there will be at least some negative revenue element from not bringing back the popular player.) And when you factor in the time value of money — e.g., money now is worth more than money later — the Lin non-signing is even more a negative for MSG stockholders." http://blogs.marketwatch.com/thetell/2012/07/16/mondays-msg-market-cap-drop-would-have-paid-for-lin-contract/

This is huge. So, Dolan's TANTRUM about Jeremy Lin has ALREADY COST the organization TWICE what Lin's contract would have.

Not to mention that Linsanity led to a HUGE surge in MSG stock in February. Lin was responsible for a 13% rise in stock in February.

Since Lin debuted against the Nets on February 4, MSG’s stock has surged as much as 13% to an all-time high of $33.18 this week, compared with a rise of about 1% on the broad S&P 500.

Read more: http://www.foxbusiness.com/industries/2012/02/17/linsanity-validates-msg-spinoff/#ixzz20oUXiywZ

Not let me ask you this - if a 2% drop in stock share is worth $50M in losses to MSG...

What does a 13% gain equal? $300M or so?

Of course that's not an exact number, but it gives you an idea of how valuable Lin was to this organization...

And that's before taking into account that Lin is just flat out better than any other option the Knicks have at PG for the next 3yrs.

This is flat out the stupidest, most childish move ever by Dolan.

He should be flayed in the media for this.

Rookie wrote:

Bonn1997 wrote:

Rookie wrote:

Solace wrote:

SlimChin wrote:

Solace wrote:http://www.nypost.com/p/sports/knicks/knicks_balk_year_tax_bill_salary_8gqxzMNE1athYH35vyztZM?utm_medium=rss&utm_content=Knicks

Knicks soap opera continues with Lin contract talks, Kidd's DWI arrest
Knicks Blog
Berman on Twitter
By MARC BERMAN
Last Updated: 6:42 AM, July 16, 2012
Posted: 1:33 AM, July 16, 2012

Share on emailShare on facebookMore Sharing ServicesMore Print
LAS VEGAS — Is Jeremy Lin worth $58.3 million in 2014-15?
If the Knicks were to match the Rockets’ poison-pill offer sheet, under the new CBA’s vicious luxury-tax penalties, owner James Dolan could pay that amount for Lin just for the 2014-15 season.
That astronomical bill is why the Knicks sought a cheaper point-guard solution to pair with Jason Kidd. They were finalizing a sign-and-trade with Portland yesterday that would make Raymond Felton a Knick again in a three-year deal that is estimated at close to
$10 million with a player option for a fourth year.

JASON SZENES/NY POST
HARVARD ECONOMICS: Jeremy Lin launched himself from the Ivy League into the NBA spotlight with dazzling play at the Garden last season, but the price for the luxury-tax-paying Knicks to retain him — pushing $60 million in 2014-15 alone — could be too steep.

A source told The Post Saturday night that after the Felton deal, the Knicks will not match Lin’s back-loaded three-year, $25 million offer sheet from Houston.
Lin’s potential departure after lighting up the Garden in February and March plus the news of Kidd’s DWI arrest yesterday in the Hamptons kept the Knicks in a familiar role as the NBA’s biggest soap opera.
It was doubtful the arrest would have any impact on the decision whether to retain Lin.
At the Las Vegas summer league yesterday, Knicks coach Mike Woodson dodged the media and refused to discuss the latest developments.
“I can’t talk today,’’ Woodson said. “I can’t talk about it.”
OPINION: KIDD'S ARREST DISGRACEFUL
KIDD ARRESTED FOR DWI
Knicks general manager Glen Grunwald never showed up to the arena and was said to be back in the hotel crunching numbers. The Knicks have until 11:59 tomorrow night to match Lin’s offer sheet. They could not make a move on Lin until the Felton deal became official.
Just four days ago, Woodson gushed that the Knicks would “absolutely’’ match the Rockets’ offer sheet and said Lin would be the starter at point guard to open training camp.
But that was before Lin secretly flew to Las Vegas to change the offer sheet and turn a four-year, $28 million deal with $19 million guaranteed into a fully guaranteed three-year, $25 million contract — with the final year a balloon payment of $14.9 million that Carmelo Anthony called “ridiculous’’ yesterday.
How ridiculous? The Knicks are expected to be over the luxury-tax threshold for three straight years by 2014-15, and repeat taxpayers will be subject to the harshest of luxury-tax penalties.
If all of Lin’s $14.9 million salary comes in over the threshold, the first $5 million will be taxed at a 2.5-to-1 ratio. The next $5 million will be taxed at a 2.75-to-1 ratio. The final $4.9 million is taxed a 3.5-to-1 ratio.
The math shows the tax alone on Lin’s final year would be $43.4 million, meaning the entire bill that season could be $58.3 million.
Dolan actually might have matched the offer had it been done above board. But as reported by The Post, the Knicks were furious Lin renegotiated the contract after they had told him they would match it, knowing how deadly it would be financially to the organization’s coffers because of the tax.
Dolan is all about loyalty and the revamped offer sheet rubbed him the wrong way.
As long as Kidd isn’t thrown in jail, the Knicks are set at point guard this season with a three-headed monster of Felton — who desperately wanted to return to the Garden after working great with Amar’e Stoudemire in 2010-11 — Kidd and Spanish leaguer Pablo Prigioni.
marc.berman@nypost.com

If this math is accurate, yeah, Lin is gone.

Yeah and? Money has never been an issue with Dolan until now? Dolan writes checks—always has.

We've never had a payroll as high as this would bring us with the new luxury tax. You are talking about a Knicks team that might cost I dunno, $140 million for that third year, after luxury tax. Will Dolan really pay that? Your guess is as good as mine.

figures like that can have a negetive projection on MSG's stock as well....so if the stock plummets due to negative profits, the costs keep compounding

OR If Lin draws in money over the next 2 years at a rate even remotely close to last year, they make a huge profit on him, can invest that money, and by year 3, have made a huge amount off him.

alright, not being savvy in the ways of the market it would appear that MSG stock is already dropping...so, as of right now in the short term MSG has already lost 49M in market capitalization.
-----------------------------------------------------------------------------------------

"Much has been made already about the New York Knicks decision — reportedly at this point — not to sign Jeremy Lin. But another way to look at the move is that the Knicks’ owner, Madison Square Garden Inc. MSG -1.83% , has already lost more money in market capitalization than the cost of Lin’s contract.

The 64-cent drop in MSG stock equates to a market capitalization loss of about $49 million.

Estimating the cost to MSG of matching the Jeremy Lin contract offer from the Houston Rockets is a bit trickier. The roughly $25 million over three years that the Knicks would owe the Harvard graduate is almost irrelevant, because the Knicks will be paying the NBA’s full salary cap, and then some, with or without Lin. The only real direct cost comes from the luxury-cap implications.

This piece by Business Insider does a pretty good job of laying out different scenarios for 2014, when the Lin contract could be considered, to use Carmelo Anthony’s terminology, “ridiculous.” The one this author feels would have been most likely is not actually presented — getting rid of Marcus Camby and Raymond Felton, and keeping Iman Shumpert — but the approximate difference in luxury tax between keeping Lin or not is somewhere in the order of $35 million to $40 million.

And that’s assuming no business impact at all from the revenue side. (Even if a Lin-inspired boycott by Knicks fans is short-lived, it does seem there will be at least some negative revenue element from not bringing back the popular player.) And when you factor in the time value of money — e.g., money now is worth more than money later — the Lin non-signing is even more a negative for MSG stockholders." http://blogs.marketwatch.com/thetell/2012/07/16/mondays-msg-market-cap-drop-would-have-paid-for-lin-contract/

crzymdups wrote:

gunsnewing wrote:Someone should make anew topic on the money the knicks have already lost with dolans tantrum. Id do jt but posting on a phone sux

why bother - we're either preaching to the choir or arguing with the hardliners who treat some leaked spin from the knicks front office as gospel.

You're absolutely correct. It's rather impressive how naive some posters can be. I guess it's true that there is a sucker born every minute.