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So if you propose a trade with the Pacers taking back more player salaries than they send out, (meaning more than $993,163) you are wasting everyone's time, because it's not feasible. It just won't happen!
The tax line this season is $67,685,000. Teams with salary under this amount will receive something in the neighborhood of $2.5 million from the league.
Teams with salaries over $67,685,000 will not get the $2.5 million, and in addition will pay one dollar for every dollar they are over.
According to ESPN figures, the Pacers payroll is $66,871,836........... which puts them ($993,164) under the luxury tax line.
For instant, if the Pacers made a trade that put them a million dollars over the luxury tax line. It would actually cost them.
$993,164 ......The amount they are under the tax line now.
$1,000,000....The million they go over.
$1,000,000....The dollar for dollar amount they go over.
$2,500,000....The rough estimate they would get back from the NBA.
$5,493,169 Actual amount the trade will cost the Pacers.
There's more, other teams don't want to pay the tax either, so you not only have to watch the tax line for the Pacers, but other teams also.
Everyone needs to keep this in mind when proposing trades.
Last edited by Will Galen; 01-19-2008 at 04:36 PM.