https://x.com/bobbymarks42/status/1816157050646225098?s=46
Starting in 2025-26, teams that are a "repeater tax" will get penalized at a higher rate.
Boston is considered a repeater tax team because they were in the tax: 2022-23, 2023-24 and projected in 2024-25 and 2025-26.
—————
Why do GSW gets all the benefits and accomplish dynasty under old rules and we get penalize by New Apron rules and Increased repeater tax rate?
by BOS_HarveySpecter
7 Comments
If they don’t want too are we just gonna start losing guys? Windows aren’t open forever I guess
Don’t start with the “why did the Warriors get to do it and we don’t??” shit. It sounds so whiny. The goal is to achieve more parity across the league and I think this largely helps with that.
Eric Weiss had a financial explanation on why this might not be a problem at the end of the day. I don’t understand jack shit about it but you can take conclusions yourself
[Thought exercise: Say that BOS is operating at a $100M deficit this season due to a $200M luxury tax bill. The team is worth $5B, so they secure a line of credit to cover at low interest using shares as collateral. So, the bank covers the $100M & ownership pays, say, $5M in interest annually. But, the team is operating at a loss which is tax deductible based on %ownership. Say the Grousebeck’s total revenue from all holdings this year is $500M. They own 51% of the team, so they get to use 51% of the operating loss from the Celtics as a tax offset. The % reduction in income tax is roughly double the cost of the loan. When the team isn’t in the luxury tax it generates around $100M in profit annually. If BOS ran up $1B in luxury tax penalties over 6 years the interest would cost only $50M, which the team can cover from operating revenue. They could then payoff the debt by selling a % of the team, paying out from profit over time, a combo of both OR they could simply carry the debt & pay it off when the new owners sell the team.](https://x.com/ericweiss_sa/status/1814678202004152503?s=46&t=8FzcR0XbBJ0lcndnwfftQA)
As long as team is competing for Championship, tax is money well spent
I thought the second apron was developed because of the warriors dynasty of 2017-2019?
The rights fees just tripled. Expansion is a 250- 300 million per team fee.
They are gonna be raking in the bills. Vegas team will be 5-6 billion. Seattle 4 billion? Mexico City will pay 10 billion in 2032.
The current owners are betting that the new owners are soo stinking rich that paying an additional few hundred million in tax per season the first few seasons is peanuts compared to buying the whole thing for $5-6B 🤷♂️
The problem with that insane sum of money is that the only ones who can really afford it are sovereign wealth funds and/or royalty of oil-producing countries in the middle east currently trying to buy ALL the professional sports leauges in the world worth having 👀
If that happens I will ultimately have to find a new team…