Sunday, August 18, 2002
Teams walking luxury-tax line
Pay players now, pay league later for overspending
Enquirer staff and news services
At least one NBA top executive would never buy a car without checking prices. It's funny then how league executives operate under a punitive tax that is imposed only after the fact.
“The idea is to encourage teams to keep (their payroll) low,” Atlanta Hawks president Stan Kasten said.
With the exception of three teams - Portland at $96.76 million, New York at $75.5 million and Dallas at $63.38 - the NBA brethren are trying to operate under the luxury-tax limit. To cross the line is to invite a dollar-for-dollar tax. The problem for teams that are flirting with the luxury-tax line is that it's all ex post facto. The NBA will not reveal the number until next July after all of the season's revenues have been counted.
The best guess, Hawks vice president and general manager Pete Babcock says, has the line at a low of $51 million to as much as $54million. Because the salary cap was lowered to $40 million, chances are the luxury tax will kick in at a lower level.
There is double jeopardy here because teams over the line pay a dollar penalty for each dollar they exceed the limit, but they also are excluded from the distribution of luxury-tax dollars that go back to those teams that remain under the tax line. Today, there are 12 teams below a $50 million salary level, ranging from San Antonio at $47.3million to the Los Angeles Clippers at $22.5 million. Of course, both teams have only 10 of their required 12 players under contract.
NO STOPPING SHAQ: If the New Jersey Nets acquired Dikembe Mutombo's three-year, $46 million contract with thoughts of knocking off the Los Angeles Lakers next June, they had to be disappointed with this assessment by their new center:
“I still believe that Shaq (O'Neal) is unstoppable,” Mutombo said. “When you see someone of his caliber, playing on that level, moving the way he moves, all you can do is take the hat off to him, because he's a great basketball player and he continues to improve night after night. Many people thought maybe he would slow down, but he hasn't slowed down. That's all it is.”
WHEELING, DEALING: Cleveland guard Ricky Davis signed an offer sheet with the Minnesota Timberwolves, and the Cavaliers have 15 days to match the deal.
Cleveland general manager Jim Paxson wouldn't confirm details of the offer, adding that he will take all of the allotted time to decide whether to keep the 6-foot-7 Davis.
Sports Stories
Astros 6, Reds 1
Reds box, runs
Reds Q&A
Recovering Dessens on track for return
Reds chatter: Rook on a roll
Cardinals 5, Phillies 1
John Fay's MLB Power rankings
Louisville 7, Columbus 1
Major-league baseballs hand-made in Costa Rica
Bengals 22, Colts 10
Bengals-Colts Stats
DAUGHERTY: Bengals QBs
Akili making a pass at QB job
Bengals Q&A
Booker's career enters last years, but he's not done
Colts' Rhodes will miss season with torn ACL
Broncos' Davis to retire after latest knee injury
Browns WR stays after all
Browns 24, Lions 23
Chiefs 19, Texans 9
Cowboys 19, Panthers 16
Falcons 36, Giants 24
Packers 29, Cardinals 21
Patriots 16, Eagles 15
GROESCHEN: Crosstown games mean it's football time
Teams walking luxury-tax line
