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Nets face almost $70 million in luxury taxes
Posted By HOOPSWORLD On July 10, 2013 @ 1:30 pm In Wirenews | Comments Disabled
by Jeff Zillgitt, USA TODAY Sports
The NBA’s salary cap and luxury tax figures are slightly higher in 2013-14 than they were the past three seasons but not high enough to offset some costly tax bills for a few teams next season.
The league released late Tuesday evening that the salary cap will be $58.679 million and the luxury tax will be $71.748 million in 2013-14 – after three consecutive seasons of $58.044 million for the salary cap and $70.307 million for the luxury tax.
This season, for the first time under the new collective bargaining agreement established in 2011 by the league and players, the more punitive expensive luxury tax kicks in.
In previous seasons, teams paid a $1 for every dollar over the luxury tax. Now, teams will pay a $1.50 for every dollar over the tax in the first $4.99 million over the tax level, $1.75 for every dollar between $5 million and $9.99 million over the tax, $2.50 for every dollar between $10 million and $14.99 million over and 3.25 for every dollar between $15 million and $19.99 million. The tax rate increases another 50 cents for each addition $5 million after $20 million.
Looking ahead to the Brooklyn Nets’ projected payroll of about $98 million in 2013-14, they will pay nearly $70 million in taxes – compared to $26.25 million under the old tax system. That’s essentially an astronomical $170 million committed to team salary for the Nets and Russian billionaire Mikhail Prokhorov, who wants desperately to win a championship.
“It’s great for our fans (and) great for the organization that we have an owner who is willing to spend the spend money but I think spend it wisely,” Nets general manager Billy King said Wednesday morning. “We wouldn’t have just spent this way if we didn’t think it would help us advance our common goal of winning a championship. That’s really what we’re trying to do.
“He believes in what we’re doing. We talk about it. We map it out going forward so we have a strategy looking at where we are now for the next couple of years and where we’re going to get … [For more on Brooklyn Nets face almost $70 million in luxury taxes, click here.]
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