longstrangetrip wrote:The absurd punitive nature of the luxury tax is going to come home to roost for the Thunder this year. Reports are that their $150 million payroll is going to cost them an additional $150 million in luxury tax. The reported net worth of OkC owner Clay Bennett is $400 million, so if he is the sole owner, he will be paying over a third of his net worth to the league...and with almost no chance of even advancing to a West Conference title game! That should illustrate why Taylor needs to avoid the luxury tax this year, especially since there is no chance he can avoid the tax next year if he wants to retain KAT, Wig and Butler.
OkC paying this gigantic tax helps non-taxpaying owners like Taylor, since half of it goes to them. So if the total lux tax this year is $250 million and half of that goes to, say, 20 teams, Glen gets a $6 million payday. Not that much, but it is likely one of the reasons he will be willing to enter into lux-land for one year next season.
Socialism!!!
Actually, it makes a lot of sense, at least in a professional sports league. The irony is that it is in laissez-faire America where the sports leagues, especially the NBA, regulate their sports economies so heavily. Meanwhile, here in Europe (I live in Germany), which has significantly more socialist economies than the U.S., their soccer leagues are totally unregulated--to the detriment of the product, I would argue. There's rarely much drama in who the top teams will be and literally the only way for a team to get better is for the owners to get richer and then go buy up the best players. As much as we complain about it sometimes, to me, the American model of sports economies, particularly in the NBA, is so much better than a totally free-market alternative like we have in Europe.
This recent editorial mentions this irony of laissez-faire America with heavily regulated sports league economies and socialist Europe with unregulated sports economies.
https://www.nytimes.com/2018/07/03/opinion/ronaldo-world-cup-tax-evasion.html