We Don't Want You to B Here

[lethalweapon3]

~lw3

[Spud2nique]

Wow..Bled returns to LAC where it all started. 

[kg01]

On 8/16/2021 at 12:20 AM, Spud2nique said:

Wow..Bled returns to LAC where it all started. 

The guy Scalabrine had a good point.  If LAC's goal via this trade is to shed lux tax, they have to cut Bledsoe.

Is that right?

[JayBirdHawk]

8 minutes ago, kg01 said:

The guy Scalabrine had a good point.  If LAC's goal via this trade is to shed lux tax, they have to cut Bledsoe.

Is that right?

They are saving almost $30 million in Luxury Tax payments since they are taking back less money ta=han they sent out.

 

 

 

[kg01]

2 minutes ago, JayBirdHawk said:

They are saving almost $30 million in Luxury Tax payments since they are taking back less money ta=han they sent out.

 

 

 

But ... isn't that only if they take advantage of Bledsoe's partial guarantee in year 2?

Not being a smart-butt, I genuinely don't get this.

[JayBirdHawk]

6 minutes ago, kg01 said:

But ... isn't that only if they take advantage of Bledsoe's partial guarantee in year 2?

Not being a smart-butt, I genuinely don't get this.

They are a Luxury Tax team regardless, they are just reducing the amount for this year by reducing the actual salary by $5million in the trade.  They were like $35 million over the tax, with this trade they are $30 million over - so based on how they luxury tax is calculated all they have done is reduce it.

This gives a breakdown since they are repeat offenders:

For repeat offenders, the luxury tax breaks down as follows:

• For teams between $0 and $4,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap.
  • The incremental maximum for this level is $12.5 million.
• For teams between $5,000,000 and $9,999,999 over the cap, the tax rate is $2.75 for every dollar over the cap.
  • The incremental maximum for this level is $13.75 million.
• For teams between $10,000,000 and $14,999,999 over the cap, the tax rate is $3.50 for every dollar over the cap.
  • The incremental maximum for this level is $17.5 million.
• For teams between $15,000,000 and $19,999,999 over the cap, the tax rate is $4.25 for every dollar over the cap.
  • The incremental maximum for this level is $21.25 million.
• And for teams $20,000,000 over the cap or above, the tax rate is $4.75 for every dollar over the cap, and increasing $0.50 for each additional $5,000,000 over $20,000,000.

Using the same example of a team $18.0 million over the tax, the luxury tax for a repeat offender would be a whopping $56.5 million. First, we get $43.75 million by adding the three incremental maximums before we arrive at the appropriate bracket. We then get $12.75 million by multiplying the missing $3.0 million by $4.25 to get to the full amount the team is over the cap. Add the two and we get our luxury tax total.