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Why was Dallas so much more attractive than NY?
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mreinman
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7/6/2015  6:28 PM
Bonn1997 wrote:
SwishAndDish13 wrote:
smackeddog wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

I was not inferring anything from players not coming to NY. NY Stinks and is a shytty place to play when they stink.


OK - then I misunderstood your comment before.

But how about Texas over another City with a reasonable cost of living?

Why doesn't every person in America live in the same state? It's just individual preference- some players go for money, some because they enjoy certain states, some because they are from there, it's nothing new.

Opportunity cost. The job market in many of these regions is not great. Your rhetorical question is not directly related though. Comparing the average worker to an NBA basketball player is apples to oranges. The same job is cost adjusted in most US firms. It makes logical sense. They only usually allow people to keep salaries in forced moves as an incentive.


At most, it's partly cost adjusted. They don't actually pay you 2.4 times as much for jobs in Manhattan as in Dallas, for example.

they don't need to since most 98 percent of the people who work in Manhattan don't live there. I don't know why you keep assuming that they do.

so here is what phil is thinking ....
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SwishAndDish13
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7/6/2015  6:30 PM
Bonn1997 wrote:
SwishAndDish13 wrote:
Bonn1997 wrote:
CrushAlot wrote:
Bonn1997 wrote:
CrushAlot wrote:
Bonn1997 wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

Just to add to that:
To make up for the tax difference, we'd have to pay him 82 mil and it would match the 80 mil in Dallas.
When I go to CNN's cost of living calculators, I find that to match the 80 mil that Dallas offered, we'd have to pay him closer to 200 mil.
If he lived in nyc with state and city income taxes he would be paying a little over 12% annually on 20 mil. Not sure how that turns into 2 million over the life if his contract. Some have suggested that the tax is only for games played in nyc. That is still a little over 1 mil annually. Can you explain your math?

I was also factoring in the federal income tax deduction but it's not clear if the money in state taxes would qualify for a federal income tax deduction. (I late replied saying that I thought it might potentially be closer to $5 mil than 2 mil.)

I think 5 mil might be about right. That is a signicant advantage in my opinion.

Sure, NYC also offers some advantages over Dallas. It's up to politicians to change the tax rate if their city is losing valuable employees or up to organizations to convince job candidates that they get something valuable for that money.

The is really a league issue as opposed to a federal or state issue. The league is creating an unfair advantage for these teams and should address it. You can create salary cap tiers. It's a rather easy fix.


It's a league issue if the owners of teams with high state taxes convince the commissioner (who is elected by the owners) to make it an issue. They haven't. Otherwise, it's just a bitter Knicks fans issue to put it bluntly.
What about adjusting for sales tax? Cost of living? Ensorements? Real estate prices?

They won't make it an issue. So I guess it is complaining (although an undeniable reality). The politicians won't change it for sports teams. That is a ridiculous suggestion IMO. A full scale would be insane plan to account for everything would be hard to implement. I think it is pretty fair to say Jordan walked away because he wasn't losing money and not because Cuban told him he would be Shaq. It should be addressed to level the playing field.

mreinman
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7/6/2015  6:31 PM
mreinman wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
smackeddog wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

I was not inferring anything from players not coming to NY. NY Stinks and is a shytty place to play when they stink.


OK - then I misunderstood your comment before.

But how about Texas over another City with a reasonable cost of living?

Why doesn't every person in America live in the same state? It's just individual preference- some players go for money, some because they enjoy certain states, some because they are from there, it's nothing new.

Opportunity cost. The job market in many of these regions is not great. Your rhetorical question is not directly related though. Comparing the average worker to an NBA basketball player is apples to oranges. The same job is cost adjusted in most US firms. It makes logical sense. They only usually allow people to keep salaries in forced moves as an incentive.


At most, it's partly cost adjusted. They don't actually pay you 2.4 times as much for jobs in Manhattan as in Dallas, for example.

they don't need to since most 98 percent of the people who work in Manhattan don't live there. I don't know why you keep assuming that they do.

Wow! I was so off here ...

2012 study:

Manhattan’s daytime population is approximately 3.94 million; the censusdefined
daytime population omits almost one-fourth of the total, or nearly
800,000 people. The daytime population consists of approximately 1.61 million
commuting workers, 1.46 million local residents, 404,000 out-of-town visitors,
374,000 local day-trip visitors, 17,000 hospital patients, and 70,000 commuting
students.

so here is what phil is thinking ....
Bonn1997
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7/6/2015  6:33 PM    LAST EDITED: 7/6/2015  6:35 PM
mreinman wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
smackeddog wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

I was not inferring anything from players not coming to NY. NY Stinks and is a shytty place to play when they stink.


OK - then I misunderstood your comment before.

But how about Texas over another City with a reasonable cost of living?

Why doesn't every person in America live in the same state? It's just individual preference- some players go for money, some because they enjoy certain states, some because they are from there, it's nothing new.

Opportunity cost. The job market in many of these regions is not great. Your rhetorical question is not directly related though. Comparing the average worker to an NBA basketball player is apples to oranges. The same job is cost adjusted in most US firms. It makes logical sense. They only usually allow people to keep salaries in forced moves as an incentive.


At most, it's partly cost adjusted. They don't actually pay you 2.4 times as much for jobs in Manhattan as in Dallas, for example.

they don't need to since most 98 percent of the people who work in Manhattan don't live there. I don't know why you keep assuming that they do.


So in Manhattan you can tell employees, "The salaries will be comparable so long as you live far away and endure a long commute." That fully adjusts or compensates for the difference?
Bonn1997
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7/6/2015  6:35 PM
SwishAndDish13 wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
Bonn1997 wrote:
CrushAlot wrote:
Bonn1997 wrote:
CrushAlot wrote:
Bonn1997 wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

Just to add to that:
To make up for the tax difference, we'd have to pay him 82 mil and it would match the 80 mil in Dallas.
When I go to CNN's cost of living calculators, I find that to match the 80 mil that Dallas offered, we'd have to pay him closer to 200 mil.
If he lived in nyc with state and city income taxes he would be paying a little over 12% annually on 20 mil. Not sure how that turns into 2 million over the life if his contract. Some have suggested that the tax is only for games played in nyc. That is still a little over 1 mil annually. Can you explain your math?

I was also factoring in the federal income tax deduction but it's not clear if the money in state taxes would qualify for a federal income tax deduction. (I late replied saying that I thought it might potentially be closer to $5 mil than 2 mil.)

I think 5 mil might be about right. That is a signicant advantage in my opinion.

Sure, NYC also offers some advantages over Dallas. It's up to politicians to change the tax rate if their city is losing valuable employees or up to organizations to convince job candidates that they get something valuable for that money.

The is really a league issue as opposed to a federal or state issue. The league is creating an unfair advantage for these teams and should address it. You can create salary cap tiers. It's a rather easy fix.


It's a league issue if the owners of teams with high state taxes convince the commissioner (who is elected by the owners) to make it an issue. They haven't. Otherwise, it's just a bitter Knicks fans issue to put it bluntly.
What about adjusting for sales tax? Cost of living? Ensorements? Real estate prices?

They won't make it an issue. So I guess it is complaining (although an undeniable reality). The politicians won't change it for sports teams. That is a ridiculous suggestion IMO. A full scale would be insane plan to account for everything would be hard to implement. I think it is pretty fair to say Jordan walked away because he wasn't losing money and not because Cuban told him he would be Shaq. It should be addressed to level the playing field.


I knew it was ridiculous. Every suggestion other than accepting that you will never make a level playing field in terms of cities' appeal is ridiculous IMO.
mreinman
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7/6/2015  6:35 PM
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
smackeddog wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

I was not inferring anything from players not coming to NY. NY Stinks and is a shytty place to play when they stink.


OK - then I misunderstood your comment before.

But how about Texas over another City with a reasonable cost of living?

Why doesn't every person in America live in the same state? It's just individual preference- some players go for money, some because they enjoy certain states, some because they are from there, it's nothing new.

Opportunity cost. The job market in many of these regions is not great. Your rhetorical question is not directly related though. Comparing the average worker to an NBA basketball player is apples to oranges. The same job is cost adjusted in most US firms. It makes logical sense. They only usually allow people to keep salaries in forced moves as an incentive.


At most, it's partly cost adjusted. They don't actually pay you 2.4 times as much for jobs in Manhattan as in Dallas, for example.

they don't need to since most 98 percent of the people who work in Manhattan don't live there. I don't know why you keep assuming that they do.


So in NYC you can tell employees, "The salaries will be comparable so long as you live far away and endure a long commute." That fully adjusts or compensates for the difference?

I don't think the salaries in NY are comparable, they are higher.

so here is what phil is thinking ....
Bonn1997
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7/6/2015  6:36 PM    LAST EDITED: 7/6/2015  6:37 PM
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
smackeddog wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

I was not inferring anything from players not coming to NY. NY Stinks and is a shytty place to play when they stink.


OK - then I misunderstood your comment before.

But how about Texas over another City with a reasonable cost of living?

Why doesn't every person in America live in the same state? It's just individual preference- some players go for money, some because they enjoy certain states, some because they are from there, it's nothing new.

Opportunity cost. The job market in many of these regions is not great. Your rhetorical question is not directly related though. Comparing the average worker to an NBA basketball player is apples to oranges. The same job is cost adjusted in most US firms. It makes logical sense. They only usually allow people to keep salaries in forced moves as an incentive.


At most, it's partly cost adjusted. They don't actually pay you 2.4 times as much for jobs in Manhattan as in Dallas, for example.

they don't need to since most 98 percent of the people who work in Manhattan don't live there. I don't know why you keep assuming that they do.


So in NYC you can tell employees, "The salaries will be comparable so long as you live far away and endure a long commute." That fully adjusts or compensates for the difference?

I don't think the salaries in NY are comparable, they are higher.


Of course - but not enough to fully account for cost of living differences. I meant "comparable" after taking into account cost of living.
mreinman
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7/6/2015  6:39 PM
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
smackeddog wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

I was not inferring anything from players not coming to NY. NY Stinks and is a shytty place to play when they stink.


OK - then I misunderstood your comment before.

But how about Texas over another City with a reasonable cost of living?

Why doesn't every person in America live in the same state? It's just individual preference- some players go for money, some because they enjoy certain states, some because they are from there, it's nothing new.

Opportunity cost. The job market in many of these regions is not great. Your rhetorical question is not directly related though. Comparing the average worker to an NBA basketball player is apples to oranges. The same job is cost adjusted in most US firms. It makes logical sense. They only usually allow people to keep salaries in forced moves as an incentive.


At most, it's partly cost adjusted. They don't actually pay you 2.4 times as much for jobs in Manhattan as in Dallas, for example.

they don't need to since most 98 percent of the people who work in Manhattan don't live there. I don't know why you keep assuming that they do.


So in NYC you can tell employees, "The salaries will be comparable so long as you live far away and endure a long commute." That fully adjusts or compensates for the difference?

I don't think the salaries in NY are comparable, they are higher.


Of course - but not enough to fully account for cost of living differences. I meant "comparable" after taking into account cost of living.

yeah ... you have to be rich or single to live in the city

so here is what phil is thinking ....
SwishAndDish13
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7/6/2015  7:01 PM
Bonn1997 wrote:
SwishAndDish13 wrote:
Bonn1997 wrote:
SwishAndDish13 wrote:
Bonn1997 wrote:
CrushAlot wrote:
Bonn1997 wrote:
CrushAlot wrote:
Bonn1997 wrote:
Bonn1997 wrote:
mreinman wrote:it really does look like the state tax in texas may be playing a bigger role than we think

He'd take home about 2 mil less of that 80 mil if he were in NY. That seems unlikely. You're observing the outcome (NY didn't get free agents) and inferring a highly unlikely cause IMO. Although I doubt money was the issue at all, the cost of living differences between NYC and Dallas are WAY bigger than the tax issues.

Just to add to that:
To make up for the tax difference, we'd have to pay him 82 mil and it would match the 80 mil in Dallas.
When I go to CNN's cost of living calculators, I find that to match the 80 mil that Dallas offered, we'd have to pay him closer to 200 mil.
If he lived in nyc with state and city income taxes he would be paying a little over 12% annually on 20 mil. Not sure how that turns into 2 million over the life if his contract. Some have suggested that the tax is only for games played in nyc. That is still a little over 1 mil annually. Can you explain your math?

I was also factoring in the federal income tax deduction but it's not clear if the money in state taxes would qualify for a federal income tax deduction. (I late replied saying that I thought it might potentially be closer to $5 mil than 2 mil.)

I think 5 mil might be about right. That is a signicant advantage in my opinion.

Sure, NYC also offers some advantages over Dallas. It's up to politicians to change the tax rate if their city is losing valuable employees or up to organizations to convince job candidates that they get something valuable for that money.

The is really a league issue as opposed to a federal or state issue. The league is creating an unfair advantage for these teams and should address it. You can create salary cap tiers. It's a rather easy fix.


It's a league issue if the owners of teams with high state taxes convince the commissioner (who is elected by the owners) to make it an issue. They haven't. Otherwise, it's just a bitter Knicks fans issue to put it bluntly.
What about adjusting for sales tax? Cost of living? Ensorements? Real estate prices?

They won't make it an issue. So I guess it is complaining (although an undeniable reality). The politicians won't change it for sports teams. That is a ridiculous suggestion IMO. A full scale would be insane plan to account for everything would be hard to implement. I think it is pretty fair to say Jordan walked away because he wasn't losing money and not because Cuban told him he would be Shaq. It should be addressed to level the playing field.


I knew it was ridiculous. Every suggestion other than accepting that you will never make a level playing field in terms of cities' appeal is ridiculous IMO.

I'm in agreement with you but the league went to great lengths to help reduce the big market advantage. Now the advantage has swung the other way and players are exploting a loophole. Not all of them do it for that reason but clearly many are. If your created a tiered structureit would create some balance. NY would still have factors that make it unattractive to FAs but at least it eliminates the fiscal disadvantage which is rather ridiculous given that despite all his faults, Dolan would gladly spend the money if we were allowed too.

nyk4ever
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7/6/2015  7:10 PM
not that i dont think a team with dirk isn't attractive and cuban definitely helps but the fact that is no state-income tax is a HUGE deal and in my opinion isn't getting publicity. it's really a game-changer.
"OMG - did we just go on a two-trade-wining-streak?" -SupremeCommander
SwishAndDish13
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7/6/2015  7:17 PM
nyk4ever wrote:not that i dont think a team with dirk isn't attractive and cuban definitely helps but the fact that is no state-income tax is a HUGE deal and in my opinion isn't getting publicity. it's really a game-changer.

Absolutely. Nobody brings it up. Also, 2 straight years now, nobody lining up to go play with LeBron "for less" without that tax advantage.

RonRon
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7/6/2015  8:22 PM    LAST EDITED: 7/6/2015  8:38 PM
on top of property tax, there are 2 incomes players, especially ALL STAR players must consider in New York

Contract Salaries

and

Endorsement Salaries (which Lebron's endosrements salary makes more than his NBA contract the past couple years)


Trevor Ariza was offered the same salary to stay in Washington, however, he said it did factor in to his decision to join Houston instead of playing with John Wall, with a total of 3m, on a 4year 32m contract

Endorsements will follow Lebron James no matter where he goes, and the media (sports analyst and as a celebrity, with paparazzi)
These guys have families and are human beings as well, not constant attacks of the media


However, IF we can build a team that can contend for a TITLE, YOUNG players could take a complete different approach
Which are reasons why I think Phil Jackson did a poor job putting together the roster in Free Agency this summer, overpaying for Lopez on a 4year deal, along with Williams and a declining AFFalo (both of which have player options that work against us)


With Whiteside becoming a UFA next year and Miami can not offer him a 5year deal as they do not own his bird rights, though they can offer him a 1 and 1 deal then offering him a 5year extension after that with his FULL BIRD RIGHTS, if he wants to go that route


Marc Gasol and LA, with their agents, told us they were unlikely to consider New York, even if we targeted BOTH OF THEM
I would have preferred the Phil Jackson sign DEFENSIVE players along with bench players that will be part of FUTURE, like, along with cap friendly contracts,

Aminu (instead of Affalo)
Wesley Johnson (instead of Derrick Williams)

Jeremy Evan's 2years vet min


Instead of Lopez to a 4year 54m deal, which would be about 12.5m with 4.5m raises every year with no team option on 4th

Ajincia, Koufus, Lavoy Allen, (all to 4year deal with player options on 4th with salaries from 4m- 7m with raises that they got) as they all compete for playing time, at PF/C, with KP developing this year
They would get much more PT here instead of the limited roles to showcase their skills, as they likely will have a chance for 1-2 more contracts (likely 1 more for Koufus)
By next season, they will be our bench players on cap friendly deals with the C's available next season...

Our WORST case scenarios being

for less salaries, some vet mins...
Andray Blatche, Thabeet, Bass,

Joel Freeland/Serephin/Edoh
McGee/Larry Sanders *partial guarantee at best with his depression issues*
*with this scanerio we may take back some unwanted expiring's for assets*


While next year, we will be upgrading our PF/Center position, this season we would be getting a feel of what position KP will be playing, PF or/and Center in our near future, progressing at his own rate with


Whiteside *who would be our the #1 option to build around if he has anywhere close to the same year he did last season and would fit with KP
IF KP does show his upside this season, they both would compliment each other very well for BOTH OFFENSE AND DEFENSE, with REBOUNDING, as KP, as a stretch 4 could play HIGH LOW, would stretch the floor to allow Whiteside to get room down low to score 1v1
ON DEFENSE, they both are LONG, ATHLETIC, MOBILE/QUICK for PF/C, and both highly skilled, with KP being interchangeable with the Triangle OFFENSE


IF CA shows that he recovers and stays in New York, we would have a LEGIT #1, #2, #3 option to build around, with Whiteside and KP being the future of the franchise
if not we would be able to get assets, young players, and better use his cap space

Whiteside

Pau Gasol/Noah

Al Horford/Al Jefferson/MosGoV

Battum/Wilson Chandler/Gallo
Durant if he goes doesn't want to stay in OKC and CA isn't on the roster


Instead we have the ROLE PLAYERS WE HAVE that have player options on our future with Affalo/Derrick Williams and an OVERPAID ROLE PLAYER on Lopez
NONE OF WHICH has the ability to draw a double team or has have any DOMINANCE and DEFENSE/REBOUNDING/3pt shooting of The Lakers with Shaq/Kobe/Horry/Fox/Harper/Shaw and Jordan/Pippen/Kukoc/Rodman/Harper, or the versatility/dominance of Kobe/Pau/Bynum, Odom/Ariza/Fisher

meloshouldgo
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7/6/2015  8:26 PM
mreinman wrote:Were they in that much better shape starting the free agent process?

Do we still think that Texas does not seem more attractive than NY?

I understand that Jordan was from there but many players are from the NY area and that does not seem to pull them back here.

Wes Mathews was a great signing.

Lin would be a good get.

People talk about money, but the issue is Melo. They would make up for more than the tax offset in endorsements in the NYC area. And it's not just about Nike. The NBA has made it clear, no one wants to play with Melo.

I cannot teach anybody anything. I can only try to make them think - Socrates
SwishAndDish13
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7/6/2015  10:22 PM
meloshouldgo wrote:
mreinman wrote:Were they in that much better shape starting the free agent process?

Do we still think that Texas does not seem more attractive than NY?

I understand that Jordan was from there but many players are from the NY area and that does not seem to pull them back here.

Wes Mathews was a great signing.

Lin would be a good get.

People talk about money, but the issue is Melo. They would make up for more than the tax offset in endorsements in the NYC area. And it's not just about Nike. The NBA has made it clear, no one wants to play with Melo.

Nobody has been interested in playing with LeBron for less money since he left Miami. Rather interesting.

CrushAlot
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7/6/2015  10:30 PM
NBA doesn’t view state tax disparity as competitive disadvantage

July 24, 2014 · 10:54AM


Sometimes it’s the weather. Sometimes it’s the scenery. Sometimes it’s the nightlife or the endorsement potential or spouse-and-family priorities. Sometimes it’s even the basketball, the rest of the roster, the chance to win.

And sometimes it’s the money.

How much does staying in New York cost Carmelo? (Nathaniel S. Butler/NBAE)
How much does staying in New York cost Carmelo? (Nathaniel S. Butler/NBAE)

There are a skidload of reasons why NBA free agents choose the destinations they choose and the league can’t do much (beyond the collectively bargained rules already in place) to control them. But money is something the NBA is very good at controlling. From the maximum salary a superstar can earn to the minimum wage paid to some undrafted rookie, from the “floor” that a team must spend on its player payroll to the luxury-tax threshold that acts as a de facto hard salary cap for most owners, the league manages to the dollar its costs, cash outlays and other budgets and expenditures that impact competitive balance.

So what’s up with the state tax disparity?

When Washington free agent Trevor Ariza agreed to a four-year, $32 million deal with Houston earlier this month — accepting essentially the same salary the Wizards offered him — multiple outlets noted a big difference in Ariza’s take-home pay with the Rockets. The lack of a state tax in Texas vs. the local taxes (and higher cost of living) in and around Washington, D.C., meant the veteran wing player would pocket as much as $3 million more by working and living in Houston.

And when Carmelo Anthony was making the VIP rounds on his team-selection tour that landed him right back in New York, SI.com’s Michael McCann and tax expert Robert Raiola painstakingly crunched the numbers to account for federal, state, city and “jock” taxes (most NBA markets require visiting players to pay local taxes on the portion of their income earned within their jurisdiction).

Their findings? The “same” $95.9 million/four years offer to Anthony from Houston, Miami and Chicago would have differed, in what he actually took home, by as much as $1.4 million. Yet because of New York’s high state and city tax rates, a maximum offer from the Knicks – $129.1 million/five years, or $33.2 million more than what those other clubs could have paid him – would have been whittled down to $66.7 million in net wages.

The net gap, thanks to tax liabilities, would have been less than $13 million compared to what the Bulls could have paid him (had Chicago cleared maximum cap space) and about $11.4 million more than the Heat or Rockets would have paid.

Remember, too, that just four summers ago, the decisions by LeBron James and Chris Bosh to join Dwyane Wade in Miami weren’t made in a tax vacuum. Much attention was paid to their willingness to sign for slightly less than maximum salaries, but it was mostly tax experts, academicians and NBA insiders who tracked the actual savings James and Bosh realized by shedding the liabilities of Ohio and Canada, respectively.

So what are teams and fans to do in places such as Milwaukee, Minnesota or Portland, where the highest marginal income tax rates in 2014 are 7.65 percent, 9.85 percent and 9.9 percent respectively? Or in Sacramento, which doesn’t benefit from the glamour factors as the franchises in Los Angeles or the Bay Area but still is saddled with a 13.3 percent tax rate on high earners? A million here, a million there and pretty soon you’re talking real money compared to what the Rockets, Spurs, Mavericks, Heat, Magic and Grizzlies can toss at free agents without state taxes.

Apparently, there’s little interest and no movement at the league’s highest levels to equalize the marketplace.

That’s a departure from what was done about a dozen years ago for the Toronto Raptors, when the NBA took on that franchise’s financial disadvantages, which stemmed not only from Canadian tax rates but an unfavorable (unfavourable?) exchange rate that left Raptors players with less money than their U.S. counterparts.

Shortly after Vancouver moved to Memphis in 2001, and with Toronto’s long-term sustainability in doubt, the NBA provided assistance to the Raptors and their players with a stipend reported at $2 million and other concessions. The exchange rate, however, has evened out since then and Toronto, though it still earns its revenue in Canadian currency, conducts its NBA business – salary cap figures, player payroll – in U.S. dollars. The tax rates for Toronto residents are said to be no better, perhaps, but no worse than for wage earners in many U.S. states.

As for adjusting every team’s cap ($63.065 million for 2014-15), tax level ($76.829 million) and minimum salary ($56.759 million) to factor out state taxes, a league source said the NBA has no such plans.

What might seem to be a simple math exercise grows more complicated when other differences between markets – not just the fuzzy intangibles or “quality of life” preferences – are considered. Property taxes, sales taxes, real estate prices and overall cost-of-living adjustments might cry out for attention, too.

The NBA, already deep into luxury-tax and revenue-sharing policies it says were designed for greater competitive balance, could wind up with a crazy quilt of figures, rules and bottom lines. Instead of point guards and two-way wing players becoming the darlings of the league, it might be a bunch of tax attorneys for whom fans start rooting.

Then there’s this: Do the Lakers and the Knicks really need any sort of cap advantage to be more desirable destinations than they’ve traditionally been

http://hangtime.blogs.nba.com/2014/07/24/nba-doesnt-view-state-tax-disparity-as-competitive-disadvantage/
I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
meloshouldgo
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7/6/2015  10:49 PM
SwishAndDish13 wrote:
meloshouldgo wrote:
mreinman wrote:Were they in that much better shape starting the free agent process?

Do we still think that Texas does not seem more attractive than NY?

I understand that Jordan was from there but many players are from the NY area and that does not seem to pull them back here.

Wes Mathews was a great signing.

Lin would be a good get.

People talk about money, but the issue is Melo. They would make up for more than the tax offset in endorsements in the NYC area. And it's not just about Nike. The NBA has made it clear, no one wants to play with Melo.

Nobody has been interested in playing with LeBron for less money since he left Miami. Rather interesting.

We weren't asking people to play for less money. We were ready to offer the max to the likes of Gasol, Jordan and Aldridge. They just didn't care to come here.

I cannot teach anybody anything. I can only try to make them think - Socrates
SwishAndDish13
Posts: 20878
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7/6/2015  10:51 PM
meloshouldgo wrote:
SwishAndDish13 wrote:
meloshouldgo wrote:
mreinman wrote:Were they in that much better shape starting the free agent process?

Do we still think that Texas does not seem more attractive than NY?

I understand that Jordan was from there but many players are from the NY area and that does not seem to pull them back here.

Wes Mathews was a great signing.

Lin would be a good get.

People talk about money, but the issue is Melo. They would make up for more than the tax offset in endorsements in the NYC area. And it's not just about Nike. The NBA has made it clear, no one wants to play with Melo.

Nobody has been interested in playing with LeBron for less money since he left Miami. Rather interesting.

We weren't asking people to play for less money. We were ready to offer the max to the likes of Gasol, Jordan and Aldridge. They just didn't care to come here.

We only offered to Jordan. Good story though.

CrushAlot
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USA
7/6/2015  10:51 PM
meloshouldgo wrote:
SwishAndDish13 wrote:
meloshouldgo wrote:
mreinman wrote:Were they in that much better shape starting the free agent process?

Do we still think that Texas does not seem more attractive than NY?

I understand that Jordan was from there but many players are from the NY area and that does not seem to pull them back here.

Wes Mathews was a great signing.

Lin would be a good get.

People talk about money, but the issue is Melo. They would make up for more than the tax offset in endorsements in the NYC area. And it's not just about Nike. The NBA has made it clear, no one wants to play with Melo.

Nobody has been interested in playing with LeBron for less money since he left Miami. Rather interesting.

We weren't asking people to play for less money. We were ready to offer the max to the likes of Gasol, Jordan and Aldridge. They just didn't care to come here.

But it was less. No state income tax in Texas. NY state/city is almost 13 %. Posted an article above. Also, Jordan and Aldridge are from Texas. Gasol stayed with his team.
I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
SwishAndDish13
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7/6/2015  10:52 PM
Out of curiosity does "jock tax" differ at all to the principal of paying income to the state in which it is earned, or are they just giving it a fancy name?
SwishAndDish13
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7/6/2015  10:57 PM
CrushAlot wrote:
meloshouldgo wrote:
SwishAndDish13 wrote:
meloshouldgo wrote:
mreinman wrote:Were they in that much better shape starting the free agent process?

Do we still think that Texas does not seem more attractive than NY?

I understand that Jordan was from there but many players are from the NY area and that does not seem to pull them back here.

Wes Mathews was a great signing.

Lin would be a good get.

People talk about money, but the issue is Melo. They would make up for more than the tax offset in endorsements in the NYC area. And it's not just about Nike. The NBA has made it clear, no one wants to play with Melo.

Nobody has been interested in playing with LeBron for less money since he left Miami. Rather interesting.

We weren't asking people to play for less money. We were ready to offer the max to the likes of Gasol, Jordan and Aldridge. They just didn't care to come here.

But it was less. No state income tax in Texas. NY state/city is almost 13 %. Posted an article above. Also, Jordan and Aldridge are from Texas. Gasol stayed with his team.

Solid article you posted above. The only thing I didn't get was why they focused on the 5th year so much. Without that we were paying him less every year despite being able to pay him more and an increasing rate. People used that with LeBron then he opted out so he made more by going to Miami.

Why was Dallas so much more attractive than NY?

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