Owners propose less punitive luxury tax
NBA owners have proposed a less punitive penalty for teams subjected to the luxury tax as labor negotiations continued Friday in New York.
SI.com reported that the proposal would allow tax-paying teams to receive some of the collective funds paid by teams who exceed the threshold.
Under the previous agreement, teams exceeding the luxury tax had to pay a 100 percent penalty, and the money only went to teams whose salaries were below the threshold.
Earlier in the negotiations, a multi-tiered luxury tax was proposed that had progressively higher penalties and may have served as a “hard” salary cap, to which the players are diametrically opposed.
The NBA lockout is in its 120th and perhaps most important day. It is believed that an agreement must be reached by the end of the weekend in order to salvage an 82-game schedule.
The sides met for 30 hours last week with a federal mediator before an acrimonious breakup. But they have gotten back together this week, meeting for nearly 24 hours over the last two days.
The major issues remain the division of basketball-related income and the financial system by which teams operate. Multiple reports Thursday indicated many smaller issues have been resolved.