The Knicks were the leaders among eight teams that were notified Wednesday morning that they will have to pay luxury tax, according to ESPN.com.

Teams with a payroll above $67.865 million last season are required to pay one tax dollar for every dollar they sit over the threshold. That means the Knicks will have to pay roughly $20 million in tax.

The seven other teams that will be required to pay the tax penalty are the Mavericks, Cavaliers, Nuggets, Heat, Celtics, Lakers and Suns.

Teams must make their payments in full by July 23.

Each of the teams that don't owe any tax will each receive 1/30th of the $92,454,198 total tax pot. That computes to $3,081,807 per franchise.

Posted by djsunyc:

The Knicks were the leaders among eight teams that were notified Wednesday morning that they will have to pay luxury tax, according to ESPN.com.

Teams with a payroll above $67.865 million last season are required to pay one tax dollar for every dollar they sit over the threshold. That means the Knicks will have to pay roughly $20 million in tax.

The seven other teams that will be required to pay the tax penalty are the Mavericks, Cavaliers, Nuggets, Heat, Celtics, Lakers and Suns.

Teams must make their payments in full by July 23.

Each of the teams that don't owe any tax will each receive 1/30th of the $92,454,198 total tax pot. That computes to $3,081,807 per franchise.

Posted by K22:

Posted by FrenchKnicks:

"Each of the teams that don't owe any tax will each receive 1/30th of the $92,454,198 total tax pot. That computes to $3,081,807 per franchise." => what will happen to the 8/30th of the total amount then ? Is it going in the league's pocket ?

That's my guess. The teams paying ain't getting that money back and the league is the one imposing the tax - so that $24M+ probably goes right back to the NBA.

nah, its actually going into the owners pockets. They actually had an owner or someone close to ownership on the radio (Michael Kay, I believe) that was discussing the topic of luxury cap, i think this was around the time Memphis traded Gasol. Basically the luxury tax goes to other teams. Now good owners/managers would just reinvest that money back into the team. But that was by choice, they can keep the money if they want. every year a 3 mil bonus, not bad.