Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Fri Jul 20, 2018 6:07 pm

I don't assume the Celtics will try to get under the tax line, I'm only discussing how they may do it.  I don't pretend to know what team management will do.  I am just discussing possible team moves on a discussion board.

One of my three options above is doing nothing.  Okay, that one is your favorite.  The other two options are about moving Morris.  No one else on our current roster has enough salary to get us under the line other than Morris, or if they did, the choice is not as palatable (IMO).

The tax for this season is not all that much, I agree.  It stands at a little over $4.5M, according to the chart above.  However, postponing going over the tax may be preferable to the team for the long run.

Our team may go very far over the tax line in the future.  We may max out Irving.  We may sign Rozier and Theis next year.  We will eventually have to pay Brown and then Tatum.  We may resign Horford.  That's a lot of money.  I believe the owners will do what is in the best interest of the team in the long run, at the same time they may cut a corner or two to save themselves millions.

I haven't invented this line of thought. It is being discussed elsewhere as well. Some folks seem to think it is an important thing, postponing the repeater tax.

We will have to wait and see.

gyso

PS: Beat, the tax money paid by the tax-paying teams goes to the teams that do not go over the tax line.

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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by kdp59 on Fri Jul 20, 2018 8:54 pm

I didn't mean my post as any type of personal debate, so sorry if it appeared that way.

I have seen a few posts various times this off-season about trying to stay under the tax line , with Morris being the piece used.

I get that his salary could make it happen, but like I said he was one of our top 8 players last season and will likely be again.

lots to give up fro nothing but a few Million dollars in tax payments ( well, that's easy for me to say!).

anyhow, sorry if I came off as something I didn't mean to.
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by k_j_88 on Sun Jul 22, 2018 6:29 pm

Beat,

I have wondered about that, too. With the way revenue-sharing functions and all that, it seems like a circular process.


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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 9:23 am

Here's a new site:

http://roster-builder.com/




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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by worcester on Tue Jul 24, 2018 9:28 am

Translation into English please?
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 9:34 am

With the Abdel Nader trade for Rodney Purvis, we traded away the $450,000 guarantee with Nader. Now we can waive Purvis, have a roster numbered at 14 and be $2,510,231 over the tax line (according to someone else's math).

That means that if we stay at 14 players and do not sign anyone else, we can trade Yabu for a TPE and get under the tax line.

That is not likely to happen, I am just reporting a improbable possibility. That would leave us with only 13 players and we would just under the tax line. We could not be able add anyone without going over the tax line.

gyso

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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 9:54 am

worcester wrote:Translation into English please?

I've read that Spotrac does not treat the salary numbers for Theis and Wanamaker correctly when it comes to Tax and Apron.  There is a different way of calculating the Tax and Apron numbers that this site may properly address.  The numbers for Purvis are also different, but he is soon to be waived, so it doesn't matter.

Notice the differences over at the right columns.  The Cap is basically the same as the Salary, but the Tax and Apron numbers are higher.  I cannot remember why this has happened, but if I see it again, I will try to bring the explanation here.  I often read other sites with my Kindle, so cut-and-paste isn't an option.  I will have to get off my lazy ass and go to my laptop to get it.



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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by sinus007 on Tue Jul 24, 2018 10:26 am

Hi,
Do we know the structure of Smart's contract? It could be that this year he gets $10M, so we are under the tax line...

AK
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by kdp59 on Tue Jul 24, 2018 10:28 am

sportstrac is now estimating teams tax bills

https://www.spotrac.com/nba/boston-celtics/cap/


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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by kdp59 on Tue Jul 24, 2018 10:31 am

sinus007 wrote:Hi,
Do we know the structure of Smart's contract? It could be that this year he gets $10M, so we are under the tax line...

AK


everyone seems to be listing Smarts deal at $11.66 M next season, with incentives.
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by worcester on Tue Jul 24, 2018 10:32 am

What smart ass figured this all out? Much less fun than watching basketball.
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by kdp59 on Tue Jul 24, 2018 12:16 pm

worcester wrote:What smart ass figured this all out? Much less fun than watching basketball.

man I love this crap!!
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 12:28 pm

sinus007 wrote:Hi,
Do we know the structure of Smart's contract? It could be that this year he gets $10M, so we are under the tax line...

AK

From the first page of this thread:


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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 12:34 pm

Here's a good article that tries to explain why the Celtics should try to postpone going into the luxury tax for as long as possible.  There are graphs and such that don't copy so well, so I'll just provide the link:

https://www.celticsblog.com/2018/7/22/17595388/2018-2019-nba-boston-celtics-are-in-the-luxury-tax-does-it-matter


From the comments of this very article (near the top of the comments):

mmmmm wrote:
For luxury tax purposes, the salaries of Wanamaker and Theis are counted as if they made the 2nd-year Veteran Minimum Salary ($1,588,231), which is higher than their actual numbers ($1,378,242 for Theis, $831,311 for Wanamaker). Spotrac, as great as it is in so many respects, doesn’t have that correction in their tax number for the Cs.

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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 12:55 pm

I just looked it up (and posted it there) so I will post it here as well:

For players who signed as free agents (i.e., not draft picks) under the current CBA, and make less than the two-year minimum salary, the minimum salary for a two-year veteran is used in place of their actual salary.

http://www.cbafaq.com/salarycap.htm#Q18

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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by kdp59 on Tue Jul 24, 2018 4:50 pm

OK thanks for that clarification. does that mean we are now $3.9 M OVER the tax line today?

if we drop Purvis and add Bird, that would be no change?

then Give Morris away for noting in return would leave us at 14 players and under the tax line by about $1.4 M?

how could Danny sign anyone for the 15th spot if needed and stay under the cap then?

would a prorated minimum deal work?

sounds like it will be very hard to get down there.
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Re: Luxury Tax 101 and how it affects the Boston Celtics 2018-2019 season

Post by gyso on Tue Jul 24, 2018 6:27 pm

kdp59 wrote:OK thanks for that clarification. does that mean we are now   $3.9 M OVER the tax line today?

if we drop Purvis and add Bird, that would be no change?

then Give Morris away for noting in return would leave us at 14 players and under the tax line by about $1.4 M?

how could Danny sign anyone for the 15th spot      if needed and stay under the cap then?

would a prorated minimum deal work?

sounds like it will be very hard to get down there.

My math makes it $3,897,625.00 so yes, $3.9M over the line.

A Pervis out, Bird in changes nothing.

It's beginning to look like Morris and Yabusele may be gone in February in order for us to add a couple vets at the deadline and get under the tax line.

Yabusele has half a season to prove that he belongs or else.  Bird doesn't get upgraded to full time NBA player?

I'm just guessing, of course.

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