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.

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.

Berman fu$ks up again. The Knicks could pay $43M for the WHOLE TEAM not just Lin. What a freaking clown Berman is.

crzymdups wrote:If you did the same BS math on Amar'e's contract you could blame the entire $58.3 luxury tax bill on him. The Knicks would pay no tax at all if Amar'e were traded.

Well, the math is valid, because we already have 3 point guards without Lin. So, there's no replacement cost for no having Lin. It's not about who to blame, it's what's the difference in cost for adding Lin. Sucks, but there it is. At this point, no matter whether we match or not, I cannot see all of Tyson, Amar'e, Melo and Lin making it to that third season with the Knicks; it's too much salary to carry with the luxury tax penalties as is. It sucks. I hate the new CBA.

crzymdups wrote:If you did the same BS math on Amar'e's contract you could blame the entire $58.3 luxury tax bill on him. The Knicks would pay no tax at all if Amar'e were traded.

Amare was signed before the new CBA...you can't 'un-sign' him. We can however now knowing what the full ramifications are under the new CBA choose to not sign Lin. If everyone wants to assume that it's personal because the media has portrayed it that way, no-one can stop any of you from starting 20 more threads to vent about it

Rookie wrote:

crzymdups wrote:If you did the same BS math on Amar'e's contract you could blame the entire $58.3 luxury tax bill on him. The Knicks would pay no tax at all if Amar'e were traded.

Amare was signed before the new CBA...you can't 'un-sign' him. We can however now knowing what the full ramifications are under the new CBA choose to not sign Lin. If everyone wants to assume that it's personal because the media has portrayed it that way, no-one can stop any of you from starting 20 more threads to vent about it

The media is portraying it as a tax issue. And wrongly.

The Knicks have spent $45M this off-season on Felton, Novak, Camby, Kidd.

Lin is better than all those players and far more important to the team's success and they won't spend $25M on him?

This is absurd.

crzymdups wrote:

Rookie wrote:

crzymdups wrote:If you did the same BS math on Amar'e's contract you could blame the entire $58.3 luxury tax bill on him. The Knicks would pay no tax at all if Amar'e were traded.

Amare was signed before the new CBA...you can't 'un-sign' him. We can however now knowing what the full ramifications are under the new CBA choose to not sign Lin. If everyone wants to assume that it's personal because the media has portrayed it that way, no-one can stop any of you from starting 20 more threads to vent about it

The media is portraying it as a tax issue. And wrongly.

The Knicks have spent $45M this off-season on Felton, Novak, Camby, Kidd.

Lin is better than all those players and far more important to the team's success and they won't spend $25M on him?

This is absurd.

The only signing that is happening after the Lin poison pill is Felton/Thomas. The other additions were made to a team that was going to match Lin as per the previous leaked offer sheet

gunsnewing wrote:

Solace wrote:All of this makes me wonder why the big market owners were so gung ho for this new CBA. The luxury tax penalties make this 90% of the way there to a hard cap. Ridiculous. TBH, with how it is now, I'd almost be in favor of a hard cap if we can add the ability for unlimited amnesties.

It is ridiculous half a season was lost for the nba to come back in worse shape. Nice job covering all the bases by all involved stern, hunter & fisher

Rookie wrote:

crzymdups wrote:

Rookie wrote:

crzymdups wrote:If you did the same BS math on Amar'e's contract you could blame the entire $58.3 luxury tax bill on him. The Knicks would pay no tax at all if Amar'e were traded.

Amare was signed before the new CBA...you can't 'un-sign' him. We can however now knowing what the full ramifications are under the new CBA choose to not sign Lin. If everyone wants to assume that it's personal because the media has portrayed it that way, no-one can stop any of you from starting 20 more threads to vent about it

The media is portraying it as a tax issue. And wrongly.

The Knicks have spent $45M this off-season on Felton, Novak, Camby, Kidd.

Lin is better than all those players and far more important to the team's success and they won't spend $25M on him?

This is absurd.

The only signing that is happening after the Lin poison pill is Felton/Thomas. The other additions were made to a team that was going to match Lin as per the previous leaked offer sheet

And guess what??!?! THE LUXURY TAX WOULD HAVE STILL BEEN AN ISSUE. Lin is only making $6M more in the third year of the deal.

That's the backbreaking difference for the NY Knicks. $6M.

They threw in $3M in trades to acquire Felton and Camby, btw.