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Old 07-03-2002, 08:43 AM   #16 (permalink)
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Of course it is important to realise that there was not a luxury tax back then either...
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Old 07-03-2002, 03:02 PM   #17 (permalink)
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Quote:
Originally posted by ace20004u
Of course it is important to realise that there was not a luxury tax back then either...
True, Ace!, but that misses the point I was trying to make in bringing it up. Bulls were paying a $61 million payroll. With the cap at $45 million (made up number) and a dollar-for-dollar luxury tax, that means the Bulls could go $8 million over the cap and still only be paying 1998 prices for their team. Meanwhile, the TV package is better, ticket prices will be higher (once we start winning again), etc. Bulls have shown that they are willing to go over the cap (to the tune of doubling it) to keep a winning team together.

A more recent example is this summer. Krause could renounce Oak and Best to get under the cap. Instead, he is keeping their rights as a possible tool for sign and trades. He has opted to stay over the cap and play with the league exceptions. In effect, he has made the decision to go approximately $6 million over the cap...... even with the impending luxury tax.
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