Re: The Luxury Tax
posted at 12/8/2013 8:13 PM EST
In response to andrewmitch's comment:
In response to djcbuffum's comment:
@Moonslav -- very informative post, thank you. A couple of questions:
(1) When you say "second-time offenders" and "third-time offenders," you mean "second consecutive offense" and "third consecutive offense," right? That's why the rate can be "reset" if a team goes under the limit for a year.
(2) Is the percentage penalty on the total payroll for that year, or only on the portion of the payroll that exceeds the threshold? For example, if a team has a $200mm payroll in 2014, are they paying a 22.5% penalty on $200mm, or just on $21mm?
(1) I think that's correct
(2) I believe it's only on the difference, ie the 21 in your example
you can google this - you can find a good table I am sure......
FWIW, I agree AM. Those were my interpretations too. I also noticed that due to the timing of the writing of the orginal article the information regarding 2012 and later wasn't included. My best guess is that the limits, etc. for 2012 and going forward were negotiated in a newer CBA.