Luxury Tax |  The NBA will redistribute more than 240 million dollars to the 'wisest' franchises

Luxury Tax | The NBA will redistribute more than 240 million dollars to the ‘wisest’ franchises

This season, seven teams went into the red and had to pay the “luxury tax”. These are the Warriors, Clippers, Nets, Bucks, Lakers, Jazz and Sixers. Only candidates for the title, ready to pay this tax to achieve their ends.

Upon arrival, the NBA raised more than $480 million ($482,923,376, to be precise), and as the rules state, that money is then shared equally between the NBA and the most popular franchises. “wise”. Those who have remained below the “luxury tax”.

Inevitably, they are 23 in number, and according to the Bleacher Report, they will each receive about 10.5 million dollars. This is obviously not negligible, especially after two seasons marked by the Covid-19 and lower ticket sales.

Next season, the “luxury tax” ceiling is set at $150 million, and ten franchises have already exceeded it…

luxury tax : in the NBA, the salary cap is not strict, and the NBA allows the richest franchises to exceed the threshold set with a tolerance margin of about 20%. In this case, next year, the franchises would normally have been able to spend up to $136 million. Then, for every dollar spent above this cap, franchises must pay the “luxury tax” to the NBA. A kind of tax that can be very expensive, and candidates for the title usually pay tens of millions of dollars each year. A sum then paid back to the franchises, good students, who did not pay the “luxury tax”.

Leave a Comment

Your email address will not be published.