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O.T. Coon explains the cap impact acquiring Howard has on the Lakers/Ball Don't Lie
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CrushAlot
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8/14/2012  9:58 PM
Cap guru Larry Coon emailed Henry Abbott of TrueHoop with an explanation:

The Lakers will have a tax bill of around $30 million next July, and in retrospect, will view this season as their salad days -- it's the last one where the tax rate is dollar-for-dollar. Starting in 2013-14 the new "incremental" tax takes over, where being $30 million above the tax line will mean paying a whopping $85 million tax bill.

And it gets worse. Starting in 2014-15 teams will pay an even higher rate for being repeat offenders -- defined as paying tax in at least three of the four previous seasons. A team $30 million over the tax line will pay -- brace yourself -- an additional $115 million in luxury tax.

After adding up their payroll, luxury tax bill and revenue sharing contribution (projected to be $49.4 million in 2013-14), even the Lakers have to stop to consider whether this simply can be written off as the cost of doing business -- and that's the future if they're paying players with salaries like Bryant, Howard, Gasol and Nash.


http://sports.yahoo.com/blogs/nba-ball-dont-lie/dwight-howard-tow-lakers-facing-huge-luxury-tax-235034960--nba.html
I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
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martin
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8/14/2012  10:46 PM
good stuff, thanks.
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CrushAlot
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8/14/2012  10:51 PM
martin wrote:good stuff, thanks.

No problem. I linked to it from the slick sports nba feed.

I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
arkrud
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8/14/2012  11:40 PM
OK
$100 million more in expenses for mister Bass...
How much Superman will bring in revenues of the Lakers over the time of his contract? 200... 300?
Smart businessman invests money to make more money. And Lakers are a gold mine of bbal.
It is cool that they will share some of this millions with other teams... just to be vested by idiots like Maloofs, Jordan,etc.
"There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy." Hamlet
CrushAlot
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8/14/2012  11:46 PM
arkrud wrote:OK
$100 million more in expenses for mister Bass...
How much Superman will bring in revenues of the Lakers over the time of his contract? 200... 300?
Smart businessman invests money to make more money. And Lakers are a gold mine of bbal.
It is cool that they will share some of this millions with other teams... just to be vested by idiots like Maloofs, Jordan,etc.

Actually if his projections are right it is an extra 164.4 million in year 3. Not my money but it is a huge sum.

I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
CashMoney
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8/14/2012  11:49 PM
arkrud wrote:OK
$100 million more in expenses for mister Bass...
How much Superman will bring in revenues of the Lakers over the time of his contract? 200... 300?
Smart businessman invests money to make more money. And Lakers are a gold mine of bbal.
It is cool that they will share some of this millions with other teams... just to be vested by idiots like Maloofs, Jordan,etc.

The Lakers sell out regardless and they only make a portion of the jersey sales as a portion also goes into the revenue pool. Smart business does invest money to make money but smarter business is to make sure you make more than you spend.

Blue & Orange 4 Life!
CashMoney
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8/14/2012  11:50 PM
CrushAlot wrote:
arkrud wrote:OK
$100 million more in expenses for mister Bass...
How much Superman will bring in revenues of the Lakers over the time of his contract? 200... 300?
Smart businessman invests money to make more money. And Lakers are a gold mine of bbal.
It is cool that they will share some of this millions with other teams... just to be vested by idiots like Maloofs, Jordan,etc.

Actually if his projections are right it is an extra 164.4 million in year 3. Not my money but it is a huge sum.

Only if your last name isn't Dolan.

Blue & Orange 4 Life!
arkrud
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8/14/2012  11:54 PM
I do not think Nash and Kobe will be on Lakers in 2 years.
They will retire. And they may also trade Gasol by then.
If you think they Lakers are done dealing you are mistaken.
They just started the preparations.
"There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy." Hamlet
CrushAlot
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8/15/2012  12:00 AM
CashMoney wrote:
arkrud wrote:OK
$100 million more in expenses for mister Bass...
How much Superman will bring in revenues of the Lakers over the time of his contract? 200... 300?
Smart businessman invests money to make more money. And Lakers are a gold mine of bbal.
It is cool that they will share some of this millions with other teams... just to be vested by idiots like Maloofs, Jordan,etc.

The Lakers sell out regardless and they only make a portion of the jersey sales as a portion also goes into the revenue pool. Smart business does invest money to make money but smarter business is to make sure you make more than you spend.

Also, I thought it was a ridiculous number to dismiss. Messing around with just the projected 164.4 million figure. If howard gear was to cover that expense at $30.00 per jersey, he would have to sell they would have to sell 5,466,666 jerseys in year 3.

I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
Nalod
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8/15/2012  1:03 AM
Isiah would make the tax his biytch!
arkrud
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8/15/2012  10:30 PM
CrushAlot wrote:
CashMoney wrote:
arkrud wrote:OK
$100 million more in expenses for mister Bass...
How much Superman will bring in revenues of the Lakers over the time of his contract? 200... 300?
Smart businessman invests money to make more money. And Lakers are a gold mine of bbal.
It is cool that they will share some of this millions with other teams... just to be vested by idiots like Maloofs, Jordan,etc.

The Lakers sell out regardless and they only make a portion of the jersey sales as a portion also goes into the revenue pool. Smart business does invest money to make money but smarter business is to make sure you make more than you spend.

Also, I thought it was a ridiculous number to dismiss. Messing around with just the projected 164.4 million figure. If howard gear was to cover that expense at $30.00 per jersey, he would have to sell they would have to sell 5,466,666 jerseys in year 3.

Rockets will have no problem to sell 25 millions Lin jerseys in one year if not more.

"There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy." Hamlet
Mray20
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8/15/2012  10:42 PM
Only the team merchandise sold at the arena goes to the team, the rest gets split between the nba teams Lin isn't paying for himself in year 3 lol
No layups!
markvmc
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8/15/2012  11:52 PM
His contract is spread evenly between the 3 years isn't it?
CrushAlot
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8/16/2012  12:48 AM
markvmc wrote:His contract is spread evenly between the 3 years isn't it?

Its a weird quirk with the new cba. It is spread evenly for the rockets I beleive but has the poison pill third year for the Knicks. I believe it is set up this way so that a team can't offer a huge first year sum that prevents the 'limited' bird's rights team from matching because of their current salary cap. However, from what I have read the cap impact for the rockets is spread out evenly for the 3 years Lin is signed. The contract was drafted to make it minimally very punitive monetarily and restrictive in regards to trades and signings in year three for the Knicks. I believe it was Coon that suggested the Knicks could use the 'stretch provision'in year three of Lin's contract to cut the cap hit to 4.9 mil. However, that would mean waiving Lin in year 3. I think Grunwald weighed all of the options and reluctantly decided to let LIn go to Houston. I disagree with those that think this was an emotional dolan f-up. I also disagree with those that claim Lin's marketability transcends the huge monetary penaltys the Knicks would have to pay and the restrictions on player movement that would occur in year three by adding his contract. I think the Knicks desprately wanted Lin back and I think they wanted him to get market value in his contract. I don't think they ever thought that he would sign a contract with a third year that would be so punitive to them that they could not match it. Some say Grunwald is a puppet of Dolan's. I disagree. I think he is a very shrewd man that has a better grasp of the new cba then most of his peers and he made the correct decision for the team as the gm knowing how much it would devestate the fan base but also knowing he could not let run the team from an emotional, reactionary place.
I'm tired,I'm tired, I'm so tired right now......Kristaps Porzingis 1/3/18
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O.T. Coon explains the cap impact acquiring Howard has on the Lakers/Ball Don't Lie
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