therealdeal wrote:wcsoldier81 wrote:Use the amnesty on Ron to give Clark a better contract if needed
Ron will be an expiring next season just like Pau. No need to amnesty anybody.
oh well there are 2 reason to amnesty and a pretty big one.
Starting in 2013-14, teams more than $4 million above the tax level cannot receive a player in a sign-and-trade transaction.
Also starting in 2013-14, teams pay an incremental tax that increases with every $5 million above the tax threshold ($1.50, $1.75, $2.50, $3.25, etc.). Under that system, a team that exceeds the luxury tax threshold by $25 million would have to pay a tax bill of about $64 million!!!!!!!.
A team $20 million over the threshold would owe $45 million, while a team $10 million over the threshold would owe $16.25 million. So don’t expect to see any payrolls approaching $100 million in the near future.
If that happened, it could create a scenario in which the taxpaying team like the Lakers would be paying more in luxury taxes than its actual payroll. For example, if the tax threshold was $75 million and we managed to field a payroll of $115 million on the Lakers, the tax charge in that instance would be about $135 million. And don't get me started on repeaters (4 years within 5)....those teams are in danger for bankrupcy.
Suddenly Artest's 8 mio. make a major difference in taxes.