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Cap Permits and luxury tax

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Hiroshikun, Dec 4, 2002.

  1. Hiroshikun

    Hiroshikun Member

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    Let's face it, the likes to Clippers and Grizzilies will permanently be below the salary cap since they don't have the market capacity to sustain high level of payroll. Therefore, there are likely to be uncompetetive most of the time. This also applies to many teams in MLB.
    The bottom line is economic disparity amongst teams is translated to the performance on the court. Compare Dallas and Clippers. Therefore, I personally believe teams such as Clippers should be allowed to spare cap capacity to the highest bidder. The rule should be set that minimum price should be 1 million thus ensuring that permits behaves similar to the current luxury tax system. Then, after the permit has been sold, the team who goes over the cap by buying permit can be charged luxury tax, thus giving Clippers "new spare cap space". If Clippers can play this cleverly with good combination of draft picks, in other words become smart organization (let's say A's in the Major League), they can achieve finanical stability and be competitive at the same time. Also, NBA could add cap banking system with regulations on how much teams can spend in comparison to their revenue which would shortened the rebuilding process thus makes the league as a whole more competitive.
     
  2. wizkid83

    wizkid83 Member

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    Ummm.... the NBA is nothing like the MLB, we have revenue sharing and stuff which helps to keep teams afloat, baseball doesn't. Look at NFL, plenty of money there, becuz of revenue sharing, teams like the Pats can still do well, the system is great the way it is, Baseball is so messed up that's why so many labor probs, it will be fixed. Anyways...... WRONG FORUM.
     
  3. codell

    codell Member

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    :eek: :confused:

    Hirshikun,

    Excedrin headache #235 after reading your post. Are you stealing from Damon Stoudamire's personal stash? Just curious.


    Wizkid,

    Actually, MLB DOES have revenue sharing, and as far as I know, the NFL and NBA DO NOT (someone correct me if im wrong, but im pretty sure on this......apologies to Wizkid if I am).

    Perhaps, you just got your leagues mixed up?
     
  4. StupidMoniker

    StupidMoniker I lost a bet

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    The Los Angeles sprawl has over ten million people, one of the largest markets in the world. How exactly are they suffering from market capacity. Their problems begin and end with Sterling.
     
  5. wizkid83

    wizkid83 Member

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    Codell, what can i say man, i was confident of what I said till you went and said otherwise. I thought the big labor negotiations this year was to get revenue sharing going. I was pretty sure that the NBA and the NFL share the TV revenues which is what's keeping a lot of teams afloat, apologise if I'm wrong, some plz come and give an answer.
     
  6. codell

    codell Member

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    MLB had revune sharing before the new CBA was negotiated to avoid the strike, but it was limited.

    As far as the revenue sharing, I might have misconstrued what you said. I apologize. I thought you were talking about general revenue and no TV revenue. In the NBA and NFL, I think all TV revenue does indeed go to the league, who then disperses it amongst the teams. In MLB, I believe all teams get their TV revenue directly, which is why revenue sharing was so fearcily negotiated because of the disparity between the Yanks TV deals and the Expos TV deal (examples).
     
  7. gram!

    gram! Member

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    mlb has revenue sharing as of season 2003. thats what they figured out. wizkid is right. nfl and nba have revenue sharing.
     
  8. StupidMoniker

    StupidMoniker I lost a bet

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    MLB had some revenue sharing before, the got more and implemented an anti-Yankees, I mean "Luxury" tax.
     

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