ESPN - Woeful Knicks owe more than $45M for luxury tax - NBA



Big spending doesn't always pay off. Just ask the New York Knicks. The Knicks, who missed the playoffs last season with a 33-49 mark, were strapped with a $45 million luxury-tax bill Friday. That means New York owes almost $40 million more than the second-highest paying team in the Mavs, who finished with the league's best record.


Team Money Owed 1. Knicks $45,142,002 2. Mavs $7,204,968 3. Nuggets $2,022,418 4. T-Wolves $998,536 5. Spurs $196,082

...The 25 non-tax-paying teams, meanwhile, will each receive 1/30 of the cumulative tax amount, which computes to nearly $1.9 million per team.

Isn't the NBA office in N.Y? They could follow the mayor's example and use some of that tax to improve the administration.

Wow. That's pretty darn sad.

That can happen when your previous regime signs Allan Houston for 100 Mil...lol

Am I correct in assuming Stern & company pocket the undistributed 5/30ths?

The league gets to eat FIRST, but they usually just re-distribute the funds.

They distribute like this

All non tax teams get a 30th share, then the remaining money is distributed to all 30 teams equally.

This is from my fuzzy memory, so it may not be 100%. I would advise checking the Larry Coon's CBA FAQ.

__________________
Momma was queen of the mambo, Poppa was king of the congo, deep down in the jungle, I start banging my first bongo
Every monkey like to be, in my place instead of me, cause I'm the king of bongo baby, I'm the king of bongo bong
-Manu Chao

I just checked the CBA FAQ, and I was wrong about the sequence of disbursement.

30th shares to the team under the tax

then the league can skim

then equal 30th shares for all teams.

__________________
Momma was queen of the mambo, Poppa was king of the congo, deep down in the jungle, I start banging my first bongo
Every monkey like to be, in my place instead of me, cause I'm the king of bongo baby, I'm the king of bongo bong
-Manu Chao

Is there a set amount that they skim or just whatever they feel like it at the time?

Man, that would be nice. Bad day at work? Why not take a little extra for yourself.

They skim to cover initiatives and projects.

If there isn't a demand, they are under no obligation to take from the pool.

__________________
Momma was queen of the mambo, Poppa was king of the congo, deep down in the jungle, I start banging my first bongo
Every monkey like to be, in my place instead of me, cause I'm the king of bongo baby, I'm the king of bongo bong
-Manu Chao

I think the Knicks have actually reduced the amount of luxury tax they have to pay in the last few off-seasons, haven't they? Which just indicates how insane their salary situation has been. A couple of seasons ago, there was the "Allan Houston rule" where you could cut one guy without having to pay luxury tax on him. And the Knicks' cap situation was so awful that they didn't even use it on Houston! They waived Jerome Williams instead, since they were saving money on Houston from insurance because he retired due to injuries.