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November 28, 2011

No tax help in first 2 years, but then....

I know your mind will explode, trying to interpret all these arcane salary-cap rules in the NBA's proposed collective bargaining agreement.

Mine, too, but that didn't keep me from exploring. If you're a Charlotte Bobcats fan, you want the luxury tax to be as punitive as possible. That's because (1.) it's unlikely Michael Jordan will ever agree to, or be in a position to, be a tax-payer and (2.) the tax in its past form didn't keep the Lakers, Mavs, Heat and Celtics from paying whatever it took to suck up most of the talent.

The bad news: There's no real change in the tax system the first two seasons of the next agreement. The tax rate will still be one-for-one, as far as dollars spent beyond the threshold.

The good news: Starting in year 3 of a CBA that will last at least six years, a wildly overspending team could pay as much as $3.25 for every dollar over the tax threshold. That's punitive enough that there's no way the big-market teams won't blink, at least a little.

Beyond that, there are now restrictions on what a team over the tax threshold can do in free-agency. Not as many restrictions as were contemplated, but restrictions.

 It's too bad the league couldn't get in that restriction on extend-and-trades. Informally known as the "Carmelo Anthony Rule,'' it would have made it considerably harder for a team like the Knicks or Lakers to help a Chris Paul or Dwight Howard leverage a trade off his current team without losing his Larry Bird rights.

To my reasoning, it will be hard for the Bobcats to acquire a player like Paul or Howard unless that player hits the open market and has limited options for a maximum salary.

Posted by Observer Sports on November 28, 2011 at 10:37 PM | Permalink


Speaking of taxes, why should any of the scum that plays in the NBA be expected to pay taxes when they don't even pay child support?

Posted by: DougDoo | Nov 29, 2011 6:52:49 AM

Well, Doug, I guess that's just because your mom refuses to hire a lawyer.

Posted by: Downtown Sports | Nov 29, 2011 7:42:45 AM

And seeing as how the owners can opt out of the current agreement after five years, this is probably for naught.

Posted by: Cats Fan | Nov 29, 2011 9:51:00 AM

i don't think any sports franchises should be put on a too even of a playing field. baseball still has teams with top end payrolls failing and teams with low end payrolls thriving. the nba has also.

it's not fair for a team like the knicks to have 30 times the fanbase the bobcats have and have 30 times the revenue coming through the door simply because of geography and then the owner get to pocket all that money instead of feeling obligated to spend more on more superstars to please that massive fanbase. that's just not reflective of life. and it would absolutely lead to the nba having 5 franchises in NYC alone and 4 in the LA area.

Posted by: charlottean | Nov 29, 2011 9:51:23 AM

LOL Downtown! I haven't laughed that hard in a long time.

Posted by: apauldds | Nov 29, 2011 10:33:30 AM

I may be living in a complete fantasy world, but I'm still holding out hope that CP3 will want to come home to NC bad enough to give us a "hometown discount."

Posted by: J | Nov 29, 2011 11:30:40 AM

curry is way more realistic than paul. we shouldn't want that ball puncher anyway.

draft harrison barnes, sign or trade for curry. that's our best case scenario.

Posted by: charlottean | Nov 29, 2011 1:05:45 PM

I am giving up on Paul.

Posted by: Cranky | Nov 29, 2011 1:53:41 PM

New Bobcats Marketing Slogan:


Sky high tickets, sky high prices, mediocre product...let's get used to it.

Posted by: lew alcindor | Nov 29, 2011 2:52:55 PM

Why doesn't Occupy Charlotte make their way down to the TWC box and camp out at the plaza in front of the bus terminal? Let's level the playing field and promote economic justice. NBA players, coaches, owners, etc. have too much money. Give us your money...economic justice. Obamanomics rules!

Posted by: Danny Ainge | Nov 29, 2011 2:57:00 PM

Well, Del, anything is possible if you put your mind to it; just look at yourself.

I agree, as usual, with Charlottean. Would much rather have Curry over Paul at this stage of their respective careers. Also really would have liked the luxury tax to be more of a hard cap and installed sooner. Still have faith in Rich Cho, however.

Posted by: Downtown Sports | Nov 29, 2011 6:36:24 PM

Lew Alcindor:

By Sky high tickets - do you the mean the $10 seats up top? Or perhaps the $15 seats up top?

Then the next line you simply say "Sky high prices"--on what? Beer and food? you don't have to eat and get drunk at the game. If you would do a little research, you'd find their tickets are one of the cheapeast in the league and every single pro sports venue in America has high prices for concessions.

When I go, I pay $5 to park, buy a $10 ticket and don't eat or drink. I get to see pro sports for under $20.

Nice try, but massive FAIL...I bet you've never even been to a game. Go whine with the occupiers about corporate greed.

Posted by: Bobcat Matt | Nov 29, 2011 8:44:09 PM

Since Rick does not know, does anyone have the Bobcats' salary cap numbers and whether they can potentially sign any free agents?

Posted by: Sambo | Nov 30, 2011 8:37:34 AM

Absolutely no mention of Charlotte in that article. Only mention of NC is Chris Paul moving his stuff out!

Oh, there are pictures of him in New York in the last couple of days.

Chris Paul ain't coming to Charlotte, move on...


Posted by: George Hanson | Nov 30, 2011 3:18:40 PM

Paul was never coming here. Just people fantasizing. By the way, I thought cho was the gm not higgins. Bonnell kept calling higgins the gm. Higgins must have the easiest job in the nba. When draft time comes he absolves himself of all decisions by saying cho and mj picked the player. After that he becomes the gm again.

Posted by: crymeariver | Dec 1, 2011 12:11:11 AM

the thing you have to keep in mind about an increased luxury tax is that it DOES level the playing field. even more so than a hard cap. a hard cap isn't fair because it disallows players to play well together STAY together and get raises. a higher luxury tax means the lakers and knicks will have to pay the bobcats and raptors every year that the lakers and knicks are over the tax line(s) and the bobcats or whoever aren't.

that SHOULD (in theory) lead to those teams having more money to spend long term. when a team rebuilds, it should be rebuilding it's owner's worth to the point he can mark cuban a team when he finds his dirk. that's in theory of course.

at the end of the day the draft is still the draft and it is BEYOND democratic. and every championship was born in the draft. lebron and shaq are among the few examples of superstars who got drafted and left and even they made the finals and SHOULD have won championships with their original teams. if they had......maybe they don't leave. other guys like reggie miller, karl malone, dirk, paul pierce, dwayne wade, kobe (technically), jordan, magic, etc. etc. etc. etc. were drafted and stayed where they were for better or worse.

if you draft well, and don't overpay players, you win. it's that simple. always has. the teams like the heat and celtics and lakers and knicks that have assembled guys through trades and what not........STILL had to have the draft picks to acquire the additional pieces and all of them drafted key guys also. the current knicks roster is the only one that is lacking a superstar draft pick (unless you count landry fields or toney douglas; jokes).

basketball is as fair as life is in the united states if not far more charitable to the small markets. i'm glad they didn't go hard cap. could have ruined the game.

Posted by: charlottean | Dec 1, 2011 1:03:21 PM

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