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Tuesday, October 21, 2008
Super Luxury Tax Breakdown


ESPN has all kinds of great behind-the-scenes resources. I got permission to reprint this big load of a document about the NBA's luxury tax. It's something that has huge implications on personnel decisions, but fans seldom get to know the nitty gritty like this. Also worth noting: The difference between how much the NBA has collected in luxury tax in recent years, compared to how much they have dispersed. Not a bad little moneymaker. 

Teams that Pay Tax
In the last three years the NBA has received about $219.5 million in luxury taxes from teams.

Here is the breakdown:

The luxury tax numbers won't be final until the last day of the 2008-09 season, but early team payrolls already show the NBA will most likely collect over $100 million in taxes this year. Here are the numbers:

The numbers could slightly change when the final roster cuts are made, and of course will be adjusted during the season depending on trades, signings and buyouts. And further adjustments will be made after the season once the NBA updates the bonuses earned by players.

The Trail Blazers will become a tax-payer and owe about $7.9 million if Darius Miles plays in at least 10 combined games this season.

Teams that Collect Tax
Each of the non-tax paying teams today would receive about $3.6 million from the first distribution and all teams could get around $1.07 million back from the NBA for the second.