Can we afford to pay luxury tax? Rox 5th most profitable team in the NBA (article)

Chronz, thanks for fixing that. You know I don't pay attention to the Knicks.

The teams in luxury tax zone are usually teams more likely to go to the lottery than the playoffs.

As of right now, there are only 3 teams paying the luxury tax.

NY Knicks
GSW Warriors
Dallas Mavericks

The Mavericks are the exception of a good team, but none of these teams have won a championship.

The winning teams have been Pistons, Spurs, and Heat. The Spurs having multiple championships and financial flexibility to make moves. When you overplay one of your own players with an albatross, it makes it harder to trade him, not easier. If you have players with good contracts, it makes it easier to acquire a player we want.

http://sports.espn.go.com/nba/news/story?id=2516704

The easiest way to get to the luxury tax zone is the Bird rule. If we wait for 3 years and resign our cheap players, like Sura, Chuck Hayes, Luther Head to $10 mil contracts, that should put us in the $90-95 million range.

 

adding another big salaried player makes it hard to tinker with trades during the season cause the supporting cast will be even scrubbier.

that third guy also has to durable and consistent otherwise you end up with the nets.

 

Yes he has said that a number of times and I agree with his stance, if you continue to go over the cap then the cost gets passed on to the fan at a more rapid price.

You must conform to the structure of the cap or else you will be on a slippery slope as far as salery inflation/ticket price ratio.

FYI, the Rockets are over the cap just not over the luxury threshold.

 

Pray- Can you explain how price of tickets has to do with a team wanting to go into the Luxury tax area?

BRI revenue is shared by the league- FYI.

 

I don't know if anyone's mentioned it, but if you go over the luxury tax, you lose other benefits like revenue sharing, etc. which also help the value of your franchise.

I'm ok with Les wanting to be under it - the man brought Houston its first champion and has tried as hard as he can to bring more even though he's not as rich as the other league owners. He supports the team without being a distraction, and doesn't mind going after a barkley, pippen, mcgrady, etc. That's all you can ask from an owner.

 

Apparently you are wrong. What you do is pay your "luxury tax" into a pool that gets distributed. All teams share BRI revenue.

 

I forgot to mention the Rockets Les Alexander has 2 championships compared to the 0 for the Maverick's Don Nelson, the Knicks Dolan and the Warriors GM(who is this?).

 

"Valuable" (what the article talks about) and "profitable" (what you said) are two very different things. The Knicks lost $40 million last year according to the article. Operating income is a much better guide for spending ability than franchise value.