The NBA luxury tax is an ever-changing concept, but you have to think the same rules are always being added onto. It’s always best to know what is going on in this league and how it works. This article discusses three things that you can learn from.
If you have a bad side of the town, who does the building? Or a good side, who does the tearing down? It’s called the NBA real estate bubble and if you have been looking to buy into your team for years now, you know how it works. A good side has a good lease, so they will pay to keep the team and rent it out to others, and a bad side pays their taxes, so they get to keep it and live off of it.
If you do not own the team and are trying to sell, the NBA luxury tax is not a good thing. Because the teams will never sell for cheap. The owners are so afraid of the luxury tax that they will even out a player or two to reduce their luxury tax bill.
There are five things you need to watch out for when looking at a bad side of the team. This might seem like a lot of information, but if you look closely at the current luxury tax rules, you will see that they never follow them when doing anything. That means that the players and the team have little interest in following rules. They either think they are above the law, or they think they can do whatever they want.
The bad side will run up big tickets. That means they can make more money with less fans. To make matters worse, a bad side owner may pay to keep the stadium running for players and the front office does not care about paying taxes. How is that fair?
You can also look at the management of the team, and if you do not like what you see, then you need to find a new team. It’s not just about the luxury tax. It is not fair to pay your taxes just to get a new team.
Then you need to look at the owner of the team. Look at his record and see if he has missed too many games and how many times he has been fined. If you notice any changes in the man, you need to move on. He is not worth your time and money.
Keep in mind that the NBA luxury tax rules change from year to year. The worst part is the front office does not follow the rules, so the players are always in the dark when it comes to tax time. A good thing is that some owners have made it known that they will pay for the team if it moves. So if you are planning on buying a team soon, make sure you read these things before making your decision.