Riley crying about Heat tax hit now

Riley crying about Heat tax hit now

Postby LTLakerFan on Mon Jul 15, 2013 9:04 pm

Smack my head.

http://sports.yahoo.com/blogs/nba-ball- ... 59867.html


Pat Riley thinks the Miami Heat should get a break on their luxury tax bill
By Eric Freeman | Ball Don't Lie – 2 hours 34 minutes ago

Pat Riley feels the pain of the Miami Heat's luxury tax bill.

The NBA lockout of 2011 occurred for several reasons, but one of them was that small-market owners wanted to ensure that teams like the Miami Heat could not take full advantage of their ability to attract and build superstar-laden rosters. After the Heat obtained LeBron James and Chris Bosh to join Dwyane Wade in 2010, there was a worry that small-market teams could not compete fairly with the league's marquee teams. So, they made it much more difficult to assemble these super-teams without taking a major financial hit, increasing luxury tax penalties and making the thought of carrying three max (or near-max) contracts especially distasteful.

The Heat are now faced with a serious luxury tax bill this season. It's so big, in fact, that team president Pat Riley tried to get the Heat a partial rebate. From Ira Winderman for the South Florida Sun Sentinel (via SLAM):
As the Miami Heat continue to deal with the fallout of the luxury-tax implications of the NBA's most recent collective bargaining agreement, Heat President Pat Riley revealed that he not only saw these challenges coming, but believed the league should have made efforts to protect legacy contracts.

"I hope I don't get in trouble for saying this," Riley said on his Friday conference call, "but I was always a proponent of any of the teams that had signed players to contracts that were under the old CBA should have had some consideration with the new CBA as to how the tax was going to be charged to them over the years, until their contracts ran out, that there should have been some consideration for that."

Instead, Heat owner Micky Arison now not only is facing a $33 million luxury-tax penalty this coming season, but there could be even more dire implications going forward with the massive annual salaries of LeBron James, Dwyane Wade and Chris Bosh.

It's exactly this persistent tax issue that has caused some analysts to believe the Heat won't be able to retain all three of their stars next summer, when they have the opportunity to opt out of their deals and become free agents. Arison's luxury tax bill is serious this season, but it would only become worse in the future, when the collective bargaining agreement's various repeater clauses multiply the amount. Of course, this would also be an example of the system working as planned, limiting teams' abilities to create dynasties.

Yet, while Riley is right to stick up for his team's interests, his case is not particularly strong. Although the Heat did sign these players a year before the new CBA was negotiated, every team that pursued free agents in 2010 knew that those forthcoming rules would likely limit their ability to sign multiple stars in the future. The rules didn't say as much at the time, but a responsible team would have known what was coming. Most believed that the penalties would be worth it, and the Heat likely wouldn't argue their two championships weren't worth the financial cost.

Plus, the NBA did create a provision to lessen teams' financial burden of previous contracts — the same amnesty clause that Riley says his team won't use. It makes sense that Riley wants to help his team out in any way possible, because that's his job. But it's also true that the Heat haven't chosen to lessen their luxury tax bill because they don't think it's worth the hit they'd take on the court. They only deserve so much pity.
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Re: Riley crying about Heat tax hit now

Postby dwighthowardsdad on Mon Jul 15, 2013 9:16 pm

Cry me a river, Riley. We're in a big market in Los Angeles and have been hammered with these new CBA regulations that charges excessive luxury tax penalties. It's ridiculous. I believe we're only of the 2 NBA teams (along with the Bulls) who have a operating income in the black. We also have a TWN deal that pays out handsomely. Nevertheless, we're screwed; our hands are tied. Riley isn't saying anything new. Pay the bill, win championships, and move on.
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Re: Riley crying about Heat tax hit now

Postby Finwë on Mon Jul 15, 2013 9:28 pm

We're getting hammered too PLUS we send out significant money to other teams with the new revenue sharing plan..

I get what he's saying about old contracts and the tax hit under this new CBA, and I actually agree. But compared to some of the other team's he doesn't really have it that bad.
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Re: Riley crying about Heat tax hit now

Postby 432J on Mon Jul 15, 2013 10:14 pm

:man10: ok pat
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Re: Riley crying about Heat tax hit now

Postby V.V.V.V.V. on Mon Jul 15, 2013 11:32 pm

If they lose next year, which I believe they will due to extreme fatigue and exhaustion after 3 finals appearances, I can see Mickey cutting back and getting under the apron. Remember that if they pay 30 mil in taxes next year, they'll pay 60 mil the year after that. That may be too much to keep the band together. Even billionaires don't like giving away 60 million.
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Re: Riley crying about Heat tax hit now

Postby wcsoldier81 on Mon Jul 15, 2013 11:58 pm

They could save significant dollars by using the amnesty clause on Miller ...

Heat basically can't afford to keep the big 3 beyond the 2013-2014 season with the repeater tax kicking in 2014-2015 .

An early playoffs exit next season and Lebron may be gone
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Re: Riley crying about Heat tax hit now

Postby charvin on Tue Jul 16, 2013 12:10 am

If they're getting under the repeater tax, next year is the year.

Oh, cry me a river, Riley. The owners themselves wanted to avoid having multiple superstars on a team to achieve parity and the league assisted the owners and had the same stance, now you want the league to backtrack and protect something the majority of the owners didn't want to happen?
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Re: Riley crying about Heat tax hit now

Postby retro_nights on Tue Jul 16, 2013 1:27 pm

Actually, pretty sure owners like Buss and Arison were against the majority of this CBA, it was those mid market to small market teams that overruled them by majority.
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Re: Riley crying about Heat tax hit now

Postby charvin on Tue Jul 16, 2013 2:05 pm

Well, you reap what you sow. Owners, more or less, had an idea of what the next CBA was going to look like, but they shouldn't complain. To me, it's definitely an easy decision if I have the means to pay the luxury tax, given my last two seasons were winning it all.
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Re: Riley crying about Heat tax hit now

Postby V.V.V.V.V. on Tue Jul 16, 2013 3:45 pm

This is the FO equivalent of a flop.
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Re: Riley crying about Heat tax hit now

Postby Lakerjones on Wed Jul 17, 2013 12:27 am

:man10: :man10: :man10:
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Re: Riley crying about Heat tax hit now

Postby last stand on Wed Jul 17, 2013 1:43 am

Finwë wrote:We're getting hammered too PLUS we send out significant money to other teams with the new revenue sharing plan..

I get what he's saying about old contracts and the tax hit under this new CBA, and I actually agree. But compared to some of the other team's he doesn't really have it that bad.


my favorite part about the new CBA. oh the big market teams essentially pay for us to stay afloat, but we'll punish them for being big market teams
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Re: Riley crying about Heat tax hit now

Postby OX1947 on Wed Jul 17, 2013 9:46 am

Pat Riley is right and dumb at the same time. Contracts signed before whatever CBA was implemented after those contracts were signed should not be under the new CBA rule. Who was the Player rep and Union head for this? Maybe Pat should have told the players this. Maybe if they took take of this, Lakers wouldnt have been hamstrung in 2003 and would have signed some more guys to go for the 4 or 5 peat. Just sayin. Everyone is complaining now but where the hell were these idiots yelling this when it mattered? Oh yah, thats right, David Stern told them to go (bleep) themselves and they did exactly that.
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Re: Riley crying about Heat tax hit now

Postby therealdeal on Wed Jul 17, 2013 9:49 am

Solution:

Have all his stars opt out at the same time and take a paycut to get under the tax threshold.

Boom.
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