Non-tax teams
That sound you hear is the Mikhail Prokhorov ATM spitting out cash to teams under the luxury-tax line. Little known fact: under league rule, half of all the NBA's aggregated luxury tax is split amongst the non-tax teams (for more on this and more CBA fine print, pull up Larry Coon's indispensable CBA FAQ).
Instead of slashing payroll in the midst of a disappointing season, Prokhorov opened up his wallet yet again. By taking on Marcus Thornton's contract, Prokhorov has added more money to the pot. Remember, the deeper you go into the tax, the harsher the penalty; the luxury tax is not dollar-for-dollar anymore like it was in the old CBA. So even though Prokhorov added only $730,000 to his payroll, it translated to an additional $3.3 million in tax payouts, bringing the total luxury-tax payment to a whopping $88 million. As it stands now, the 26 or so non-tax teams should each receive about $2 million straight from Prokhorov's bank account.
That sound you hear is the Mikhail Prokhorov ATM spitting out cash to teams under the luxury-tax line. Little known fact: under league rule, half of all the NBA's aggregated luxury tax is split amongst the non-tax teams (for more on this and more CBA fine print, pull up Larry Coon's indispensable CBA FAQ).
Instead of slashing payroll in the midst of a disappointing season, Prokhorov opened up his wallet yet again. By taking on Marcus Thornton's contract, Prokhorov has added more money to the pot. Remember, the deeper you go into the tax, the harsher the penalty; the luxury tax is not dollar-for-dollar anymore like it was in the old CBA. So even though Prokhorov added only $730,000 to his payroll, it translated to an additional $3.3 million in tax payouts, bringing the total luxury-tax payment to a whopping $88 million. As it stands now, the 26 or so non-tax teams should each receive about $2 million straight from Prokhorov's bank account.
That's pretty amazing.
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