Lakers relevant Salary Cap Q&A (Please refer to page 6 for the 2022/23 projections & refer to page 7 for 2023 Cap Plan Forecasts)
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A Mad Chinaman
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PostPosted: Sat Sep 24, 2022 7:30 pm    Post subject:

vasashi17+ wrote:
2022 cap sheet (as of 9/16/22)
1) Russ (Player Option exercised) 47.1m
2) Bron 44.5m
3) AD 38m
4) PatBev 13m
5) Walker IV (full tpMLE) 6.5m
6) Nunn (PO exercised) 5.3m
7) Gabriel (nonguaranteed till 1/10/23) 1.9m
8) Reaves (nonguaranteed till 1/10/23) 1.6m
9) Damian (2yr vet min w/2nd yr PO) 2.3m
10) Brown Jr. (vet min) 1.8m
11) JTA (vet min) 1.8m
12) TBryant (vet min) 1.8m
13) MaxC 1m (rookie min)
14) Schro (vet min) 1.8m
= team salary of 168.4m; 1 roster spot open
= tax bill of 38.8m (18.1m over the tax threshold of 150.3m)
= total team salary + luxury tax of 207.2m
Our financial reality:
"Forget about matching payrolls with the Clippers, Warriors and Nets, who operate in a different financial stratosphere than the rest of the sport due to the wealth of their owners and, in Golden State's case specifically, the revenue it can generate with its privately-owned arena. The Lakers just spent less on their roster than the small-market Milwaukee Bucks did in what was ostensibly an all-in season."


"All of this is to say that trading for even expiring salaries would have put the Lakers in a difficult position, especially from an optics perspective. They could keep all of those impending free agents after trading for them just like they can keep Reaves and Beverley ... but doing so would not only mean eschewing cap space, but also approaching and perhaps exceeding the tax line. They could let some of those players walk, but doing so would not only represent wasted assets, but would anger a fanbase that expects the NBA's third-most valuable franchise to spend in accordance with its considerable revenue. Building for cap space, which in all likelihood takes the luxury tax off the table entirely, solves this problem at the cost of the 2022-23 seaso"


"None of this is to suggest that the Lakers are cheap by typical NBA standards. It's an acknowledgement that they operate within a budget that franchises in similar markets don't seem to. Given the budgetary limitations they've displayed in recent years, it's simply hard to envision the Lakers eagerly paying the repeater tax.

Was that the only reason they kept Russell Westbrook? Almost certainly not. But given the way the Lakers have operated over the past few years, it certainly seems likely that the repeater tax was a factor in how they chose to construct this roster. Trading Westbrook would have cost picks in the distant future, but it also would have cost dollars in the interim, and in the end, the Lakers seem to have decided that they are unwilling to pay both for a chance to compete this season."
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vasashi17+
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PostPosted: Fri Sep 30, 2022 9:36 am    Post subject:

^Sorry it took me a minute to respond to your post, but tell ‘em why we mad, fam haha I wanted to wait till there was some cap-related news that I could post in here, and it turns out the Diesel just gave me just enough to finally respond to your post haha

I totally agree with all the quotables you provided above and this whole wanting to do everything possible in getting “banner #18” and using this cockamamie plan about flexibility in getting us there doesn’t quite equate.

We have limited ourselves in the past with coaching & free agent contracts, so that everything lined up within Bron’s win-dow (see the botched Ty Lue hiring and the length in years given to those during our 2019 cap plan…those short term deals and associated mass roster turnovers continue to this day).

Anyways, looks like there’s a good chance Phoenix will be opening up a new Amazon compound in the near future…Bezos certainly has the pesos to make it happen.

Quote:
Shaquille O’Neal considered purchasing the Phoenix Suns — that was until he saw a multi-billionaire in the mix.

During an episode of Shaq’s The Big Podcast, he was asked by his co-host Nischelle Turner if his interest in owning an NBA team transfers over to the Phoenix Suns.

Evidently, it did at one point for the former Phoenix center.

“I was open [to the idea of purchasing the team] until I saw the initials JB. Let me tell you something, you don’t mess with James Brown, you don’t mess with Jeff Bezos,” Shaq said on The Big Podcast.

He continued: “When the boys come on stage, get your ass and go. So, Jeff said he wants it and a couple of other heavy hitters said they want it. I’m not even gonna put my name in the bucket on this one. I’m not.”


Looks like it’s a fair projection that Phx won’t really care about paying taxes in the foreseeable future.

And if things remain as is, 10 teams (listed from highest to lowest tax bill: GS, cLips, BK, Milwaukee, cbags, Phx, LAkers, Dallas, Denver, Philly) will be paying roughly 650m in taxes. This will lead to a new record 16.25m payout for the 20 non-tax paying teams. Last year, 7 teams led to a 481m tax bill that led to a (@the time) a record 10.45m payout for the 23 non-tax paying teams.
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vasashi17+
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PostPosted: Sat Oct 15, 2022 10:34 am    Post subject:

2022 cap sheet (as of 10/15/22)
1) Russ (Player Option exercised) 47.1m
2) Bron 44.5m
3) AD 38m
4) PatBev 13m
5) Walker IV (full tpMLE) 6.5m
6) Nunn (PO exercised) 5.3m
7) Gabriel (nonguaranteed till 1/10/23) 1.9m
8) Reaves (nonguaranteed till 1/10/23) 1.6m
9) Damian (2yr vet min w/2nd yr PO) 2.3m
10) Brown Jr. (vet min) 1.8m
11) JTA (vet min) 1.8m
12) TBryant (vet min) 1.8m
13) MaxC 1m (rookie min)
14) Schro (vet min) 1.8m
15) MRyan (1season nonguaranteed vet min till 1/10/23) 1.6m
= team salary of 170m; 15 roster spots taken up; 0 roster spot opens
= tax bill of 45m (19.9m over the tax threshold of 150.3m)
= total team salary + luxury tax of 215m
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mad55557777
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PostPosted: Tue Oct 18, 2022 10:17 pm    Post subject:

Vasashi- how much luxury tax +payroll GS is going to pay for the next 2-3 years? Are they in the repeater territory yet?
I am thinking maybe Jeanie would gain a fortune collecting tax payments because of the warriors and the clippers
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PostPosted: Tue Oct 18, 2022 10:21 pm    Post subject:

Another question, with the cap projected to make a big jump again with the new TV deal, let’s say if it happens in 2024, the warriors will be benefiting a lot right? Same can be said if it happens in 2025? They took advantage of the cap jump in 2016 and never looked back.
I bet we get Mozdenged again
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vasashi17+
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PostPosted: Wed Oct 19, 2022 2:05 am    Post subject:

@Mad: since the 2015/16 season, the dubs been a tax payer in 6 out of the last 8 seasons (including this 2022/23 season). They were paying the more punitive tax code as repeat offenders last season and once again will pay a repeater payment this season.

They are projected to once again be repeat tax offenders for the 2023/24 season and on a projected 134m salary cap (with a 162m tax line), they will pay 260m+ in taxes if Dray opts in and all their other option players are picked up. That however only accounts for 12 players, so if they offer the 7.5m tpMLE to a 13th player and bring in a 14th on a vet min deal then they are looking at nearly 300m in tax payments along with a 225m payroll ie 500m+ in likely salary/tax for next year’s team.

Remember that the CBA will officially expire at the end of the 2023/24 season, but an opt out vote in Dec could have the current CBA expire at the end of this season. With all that said, it is likely the dubs will be in the tax for the foreseeable future and as a result remain in the repeater tax bracket.

However if the salary cap keeps going up by 10% (as it did this last year and will likely occur again for next year), then we could see some form of cap smoothing where the dubs or any other team won’t exploit a cap spike like the one we saw in 2016 which landed them KD. But the dubs have shown their willingness to spend as long as folks keep coming thru the gates well into June. So yeah, they playing with Monopoly money and appear to have a willingness to continue trending in that manner.

Deeks had a great writeup on the history of the luxury tax and how much each team has paid over the years since it’s inception. For comparison, the Lakers have been in the tax 11 times, but have not gone too far into tax territory even though they have been considered repeat tax offenders 4 times out of those 11 payments. Last year was also our largest tax payment (~45m) and everyone knows we could go into repeater tax territory next year if we remain in the tax. Enter the 2023 cap plan, where we could escape that tax bracket.

But here’s the crazy part…in the last 20 years, the 11 times we went into tax territory, we have paid a cumulative 172m in taxes and project to pay another 45m in taxes for this season . Meanwhile the dubs have been tax payers 5 times during that 20 year period and have nearly doubled our cumulative amount to the tune of 338m in tax payments. This season, just like last season, they will pay 170m in taxes, which is just about the same amount we paid over the 11 times we breached the tax line in 2 decades. The way they spending, they’re putting everybody in a body bag!

2002-2022 Tax Payments Per Team

https://www.forbes.com/sites/markdeeks/2022/07/01/a-complete-history-of-nba-luxury-tax-payments-20012022/
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mad55557777
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PostPosted: Wed Oct 19, 2022 9:43 am    Post subject:

thanks Vasashi, great post as usual.

it is astounding that the Dubs paid more tax last season than what we pair in the entire lakers history.

if i am a small market owner, i would be happy to just sit under the tax line and collect payments from the warriors because that income will be significant. i just hope Jeanie isn't planning on doing that...

it would be interesting to see how Cap goes after the current CBA, and i hope we don't get Mozdenged again
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vasashi17+
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PostPosted: Fri Oct 28, 2022 6:27 am    Post subject:

^Thx bro…as for the cap, I’m just going to go out on limb here and state point blank, the salary cap will hit its max next season at 136m. Please check out the most recent valuations below 👇🏼

Quote:
For the first time in more than two decades, when Forbes began valuing National Basketball Association teams, a team other than the New York Knicks or the Los Angeles Lakers is the league’s most valuable. This year, the Golden State Warriors take the top spot, worth $7 billion, 25% more than last year. (The full list of NBA team valuations can be found here.) During the 2021-22 season, the Warriors generated the most revenue ($765 million after paying their revenue-sharing check) and the most operating income ($206 million) in NBA history as they won their fourth title in eight years and played their first full season with fans in the new Chase Center.

The Warriors made league financial history by raking in $150 million from arena sponsorships and advertising, double any other team, and by pulling in more than $250 million from premium seating, by far the most in the league.

The Knicks, the league’s most valuable team the past seven times Forbes has compiled the list, finished second ($6.1 billion), followed by the Lakers ($5.9 billion), the Chicago Bulls ($4.1 billion) and the Boston Celtics ($4 billion).

The average NBA team is now worth $2.86 billion, 15% more than a year ago, an impressive feat considering the stock market is down more than 15% over the same span. After arena debt service, league-wide revenue and operating income for the 2021-22 season were $10 billion and $2.7 billion, respectively—both record highs. The NBA is back on its pre-Covid growth trajectory, led by aggregate record sponsorship and advertising revenue at the team and league level, which totaled $1.35 billion last season, also an all-time high.

Another reason values rose: Valuation multiples (enterprise value/revenue) are up thanks to the league’s growth, profitability and pristine balance sheets. The average multiple for the 30 teams is 8.6, versus 7 pre-Covid. Only one team, the Brooklyn Nets, lost money last year, and the average debt/enterprise value of the 30 teams is just 10%. In other words, buying a team today means an owner can quickly begin to pocket cash and never have to put in another dime. For example, since buying the Houston Rockets in 2017, Tilman Fertitta has pulled out at least $60 million a year, except for the 2020-21 season (when the pandemic shortened the regular season to 72 games and greatly reduced attendance at games), according to sources.

Contrast that with Steve Ballmer’s purchase of the Los Angeles Clippers for $2 billion in 2014. A couple of years after buying the team, the former Microsoft CEO quipped: “I’m a new owner, and I’ve heard this is the golden age of basketball economics. You should tell our finance people that. We’re sitting there looking at red ink, and it’s real red ink. I know, it shows up on my tax returns. So it is real red ink.” Ballmer is no longer complaining. The Clippers finished handily in the black last season, and Ballmer is building a new arena that has a $500 million naming-rights deal. The Clippers are now worth $3.9 billion, almost doubling in value over the eight years of his ownership.

The league’s revenue-sharing formula and salary cap help ensure the financial health of the league. The formula had low-revenue teams split nearly $500 million that was pooled from funds that came from a combination of high-revenue teams and luxury-tax payments last season. Meanwhile, the soft cap limits player salaries to 44.74% of the league’s basketball-related income.

Future growth will come from the league’s next national media deal, which would begin with the 2025-26 season and should be worth at least double its current $2.66 billion-a-year agreement with ESPN and Turner Sports.


So the Lakers came in 3rd in franchise valuation behind the dubs & Knicks and ownership turned a profit of $115m (ie 7th highest among other ownership groups).

Quote:
#3. $5.9 bil

LOS ANGELES LAKERS

1-YEAR CHANGE: 7% | OPERATING INCOME: $115 mil

OWNERS: Jerry Buss Family Trusts, Mark Walter, Todd Boehly

https://www.forbes.com/sites/mikeozanian/2022/10/27/nba-team-values-2022-for-the-first-time-in-two-decades-the-top-spot-goes-to-a-franchise-thats-not-the-knicks-or-lakers/


Yeah, I’ll go out on a limb again and state that the Buss’s ain’t selling anytime soon. They made that off a 33 win postseasonless record. Wonder how much more they coulda made with playoff gate receipts.
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mad55557777
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PostPosted: Fri Oct 28, 2022 9:31 am    Post subject:

Quote:
During the 2021-22 season, the Warriors generated the most revenue ($765 million after paying their revenue-sharing check) and the most operating income ($206 million) in NBA history as they won their fourth title in eight years and played their first full season with fans in the new Chase Center.

The Warriors made league financial history by raking in $150 million from arena sponsorships and advertising, double any other team, and by pulling in more than $250 million from premium seating, by far the most in the league.

this is Staggering, and Clippers can expect similar revenues when their arena is finished.
while we rank 2nd in Revenue at 465mli, we are 300mil behind first place warriors(no wonder they can pay those crazy taxed), and warriors were pretty much an afterthought before Steph days. Lacob is a great business man, he took advantage of the golden era and ran with it.
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PostPosted: Fri Oct 28, 2022 9:57 am    Post subject:

That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.
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mad55557777
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PostPosted: Fri Oct 28, 2022 10:20 am    Post subject:

venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.

like both can't be true at the same time? like winning can't bring more profit?
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governator
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PostPosted: Fri Oct 28, 2022 10:35 am    Post subject:

venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.


Yeah, $115m profit is vastly different than $60m profit
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dont_be_a_wuss
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PostPosted: Fri Oct 28, 2022 11:29 am    Post subject:

Lakers had a lower income than OKC, Dallas, Golden State, New York, and Chicago. Maybe the business side isn’t being run too well either.

LINK


Last edited by dont_be_a_wuss on Fri Oct 28, 2022 11:30 am; edited 1 time in total
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vasashi17+
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PostPosted: Fri Oct 28, 2022 11:30 am    Post subject:

^@Gov: you gotta consider how much revenue comes in from gate receipts during the playoffs. Considering play-in & minimum home games during the playoffs, home teams can field anywhere from 2 to 16 home games during the playoffs. Each of those games bring in roughly 15m+ revenue each. So you’re looking at potentially 240m+ in revenue based off your team’s playoff schedule and the progression towards a title. You can either look at the associated taxes toward the luxury of having more role players getting the bag vs how much could be made during the playoffs.

Anyways, looks like things could het contentious heading into that Dec 15th vote….

Quote:
Adrian Wojnarowski
Senior NBA Insider
The NBA is pursuing the implementation of an upper salary limit in its negotiations on a new collective bargaining agreement with the National Basketball Players Association, a systematic change that has been met with significant union resistance.

In the wake of large market contenders Golden State, Brooklyn and the LA Clippers running up massive payrolls and luxury tax penalties, the NBA is proposing a system that would replace the luxury tax with a hard limit that teams could not exceed to pay salaries, sources said.

The league's proposal has been met with the firm resistance of the NBPA, to the point of the union considering it a non-starter in discussions, sources said.

Sides often use the early part of negotiations to float wish lists, and that could be what's happening with the NBA's proposal - as opposed to the buildup of a hardline stance that could ultimately lead to a work stoppage.

The NBA and NBPA are working to reach an agreement prior to a December 15 deadline that each side has to give notice on opting-out of the current CBA. The seven-year CBA expires after the 2023-2024 season.

The NBA believes that the current system fails to provide a level enough playing field to make more of the 30 teams competitive, and contends that the spending disparity of top teams has made the imbalance ultimately unsustainable, sources said. The league is pitching the idea to the union that a more competitive league will deliver higher revenues - and higher salaries amid the league's 51-49 percent share of Basketball Related Income with the players.

Beyond the NBPA, there is also skepticism among smaller NBA marketplaces who worry that an upper spending limit would fail to create the competitive parity that the league is hoping to achieve, instead causing well-constructed smaller market teams to have to break up cores of contending talent despite a willingness to enter into the luxury tax, sources said.

Commissioner Adam Silver and the NBA's Labor Relations Committee, including Charlotte owner Michael Jordan and Golden State owner Joe Lacob, has held several meetings with the union, which is under the leadership of new executive director Tamika Tremaglio and president CJ McCollum of the New Orleans Pelicans.

In the system now, teams can re-sign their own players and add salary in free agency through various exceptions to exceed the salary cap. The NBA's proposed system change would end luxury tax payments that are shared with many smaller market teams, requiring the league to find a new mechanism for revenue sharing, sources said.

Twenty of NBA 30 teams are currently below the luxury tax threshold of $150.3 million -- with 10 teams projected to pay a league-record $697 million in luxury tax penalties in the 2022-2023 season.

Among the other top priorities in collective bargaining talks for the league, sources said:

• Finding mechanisms to incentivize top players participating in more regular season games, creating crisper competition and greater value in the league's media rights deals.

• Working on a "smoothing" plan to incrementally add in the windfall escalation of revenue in the league's looming media deal, which would avoid a repeat of the cap spike in 2016 that disproportionally rewarded one class of free agents and selected teams.

• To end the "One-and-Done" early entry rule and allow high school players back into the NBA Draft, the league wants a requirement that player agents can no longer pick and choose the teams with whom they supply prospects physicals and medical information. The NBA also wants some minimal requirements around presence and participation in the draft combine.

Discussions are expected to become more frequent between now and the December 15 date to declare notice of an opting of the current deal, and there's always the possibility that deadline could be extended should the sides believe they're making progress.

https://www.espn.com/nba/story/_/id/34896826/nba-pursuing-upper-salary-limit-new-agreement-nbpa


FYI: the $697m projected to be paid by the 10 tax paying teams will lead to about a $17.75m check cut out to each of the 20 non tax payers in the league.
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mad55557777
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PostPosted: Fri Oct 28, 2022 11:34 am    Post subject:

^ there you go Jeanie, get back under the Tax, and collect that 17.75 mil check (could be more next season)
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PostPosted: Fri Oct 28, 2022 11:37 am    Post subject:

governator wrote:
venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.


Yeah, $115m profit is vastly different than $60m profit


This is before income taxes, plus, I believe, before luxury taxes as well ($45m). So net income is likely no more than $55 million.

Now tilting the argument back in your favor is the likely possibility that this is AFTER the big-wigs have already paid themselves juicy 7-figure salaries EACH. So .. yeah.
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PostPosted: Fri Oct 28, 2022 11:41 am    Post subject:

ThePageDude wrote:
governator wrote:
venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.


Yeah, $115m profit is vastly different than $60m profit


This is before income taxes, plus, I believe, before luxury taxes as well ($45m). So net income is likely no more than $55 million.

Now tilting the argument back in your favor is the likely possibility that this is AFTER the big-wigs have already paid themselves juicy 7-figure salaries EACH. So .. yeah.

it is after luxury tax.
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PostPosted: Fri Oct 28, 2022 11:56 am    Post subject:

mad55557777 wrote:
ThePageDude wrote:
governator wrote:
venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.


Yeah, $115m profit is vastly different than $60m profit


This is before income taxes, plus, I believe, before luxury taxes as well ($45m). So net income is likely no more than $55 million.

Now tilting the argument back in your favor is the likely possibility that this is AFTER the big-wigs have already paid themselves juicy 7-figure salaries EACH. So .. yeah.

it is after luxury tax.


Oh wow. Do you have a source that shows this?
(I'm more interested in the business accounting logic being used since I deal with some of this stuff. It would be in the Lakers interest to do this to reduce taxable income of course.)
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PostPosted: Fri Oct 28, 2022 12:03 pm    Post subject:

Forbes doesn’t show the methodology or the income statement that I can find. They don’t add the luxury tax to player expenses on the overview page, but there aren’t enough expenses listed there to close the gap between Revenue and income. The Nets however have a $34M operating loss which should only be possible if they count their $97M luxury tax.
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PostPosted: Fri Oct 28, 2022 12:08 pm    Post subject:

dont_be_a_wuss wrote:
Forbes doesn’t show the methodology or the income statement that I can find. They don’t add the luxury tax to player expenses on the overview page, but there aren’t enough expenses listed there to close the gap between Revenue and income. The Nets however have a $34M operating loss which should only be possible if they count their $97M luxury tax.


Yeah this seems plausible. I was going by the Forbes methodology statement at the bottom where they don't specifically mention luxury taxes as being factored into their operating income calculation, while they do mention revenue-sharing. Thanks, I'll read a bit more.
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PostPosted: Fri Oct 28, 2022 12:43 pm    Post subject:

mad55557777 wrote:
venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.

like both can't be true at the same time? like winning can't bring more profit?


I don’t think that it makes a difference in the Laker’s case. Their main sources of revenue are the Time Warner and the national TV deals. Neither are based on winning.
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PostPosted: Fri Oct 28, 2022 3:33 pm    Post subject:

venturalakersfan wrote:
mad55557777 wrote:
venturalakersfan wrote:
That shows the vast differences between posters here and Laker owners. Posters here only care about winning so when we don’t, sell the team! Ownership wants to win too but they also need to profit. And my guess would be that the priority is profit then win.

like both can't be true at the same time? like winning can't bring more profit?


I don’t think that it makes a difference in the Laker’s case. Their main sources of revenue are the Time Warner and the national TV deals. Neither are based on winning.


Those are also fixed revenues, except for playoff bonuses if they exist. Winning actually effects some variable revenues.
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vasashi17+
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PostPosted: Tue Nov 08, 2022 6:19 pm    Post subject:

ThePageDude wrote:
dont_be_a_wuss wrote:
Forbes doesn’t show the methodology or the income statement that I can find. They don’t add the luxury tax to player expenses on the overview page, but there aren’t enough expenses listed there to close the gap between Revenue and income. The Nets however have a $34M operating loss which should only be possible if they count their $97M luxury tax.


Yeah this seems plausible. I was going by the Forbes methodology statement at the bottom where they don't specifically mention luxury taxes as being factored into their operating income calculation, while they do mention revenue-sharing. Thanks, I'll read a bit more.


Sorry it took a minute for me to respond to this, but @TPD, you’re correct buddy in that Forbes methodology is found at the bottom of the linked page, and it states:

Quote:
METHODOLOGY: Revenue and operating income (earnings before interest, taxes, depreciation and amortization) are for the 2021-22 season and are net of revenue sharing and arena debt service. We use revenue multiples to calculate our team values (equity plus net debt) based on the economics of each team’s current arena deal. Our figures include revenue that team owners get from non-NBA events at their arena. For example, the Warriors and the Nets control their arenas, so our figures combine P&L statements. In contrast, the Knicks and the Lakers are tenants in their arenas, so we attribute the revenue and expenses their respective lease agreements allot for each team. All figures are in U.S. dollars based on the average U.S.-Canada exchange rates during the 2021-22 season. The information used to compile our valuations primarily came from the teams, sports bankers, media consultants and public documents, such as arena lease agreements and bond documents.


Since revenue sharing is included within their methodology, luxury taxes by default would be in play within those calculations. So the figures involved in the Forbes article integrate the luxury taxes that were spent in either turning a profit or in BK’s case, being in the red.
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vasashi17+
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PostPosted: Tue Nov 15, 2022 8:32 am    Post subject:

Yossi @ Hoopshype had a pretty good write up in terms of current asset value teams presently have. I encourage y’all to go check out the complete list, but in terms of our Lakers, they’re ranked #26, only above Dallas, cLips, BK and DC.

Quote:
Outside of LeBron James and Anthony Davis, the Lakers generally lack tradeable assets. They hold six of their next seven first-round picks, but can only move their 2027 and 2029 first-rounders due to Stepien rule complications. With the way the Lakers season is currently going, it’s no longer controversial to say that they may need to consider eventually trading their All-Stars to fortify their asset chest and look towards the future.

Players (Trade Value Rankings Top 100):
Anthony Davis (No. 25)
LeBron James (No. 35)

Notable players 25 years or under:
Max Christie (19)
Austin Reaves (24)

Draft picks till 2029 (six first-round picks, seven second-round picks):
2023 first-rounder (swap, less of own and NOP)
2023 second-rounder
2023 second-rounder (CHI)
2024 second-rounder (less favorable of MEM or WAS)
2025 first-rounder (if NOP doesn’t defer in 2024)
2025 second-rounder
2026 first-rounder
2027 first-rounder
2027 second-rounder
2028 first-rounder
2028 second-rounder (swap, less favorable of own, ORL, and WAS)
2029 first-rounder
2029 second-rounder

Draft rights:
Louis Labeyrie (57th, 2014)
Chinemelu Elonu (59th, 2009)


https://hoopshype.com/lists/team-asset-rankings-which-franchises-have-the-most-valuable-pieces/
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mad55557777
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PostPosted: Tue Nov 15, 2022 10:22 am    Post subject:

vasashi17+ wrote:
ThePageDude wrote:
dont_be_a_wuss wrote:
Forbes doesn’t show the methodology or the income statement that I can find. They don’t add the luxury tax to player expenses on the overview page, but there aren’t enough expenses listed there to close the gap between Revenue and income. The Nets however have a $34M operating loss which should only be possible if they count their $97M luxury tax.


Yeah this seems plausible. I was going by the Forbes methodology statement at the bottom where they don't specifically mention luxury taxes as being factored into their operating income calculation, while they do mention revenue-sharing. Thanks, I'll read a bit more.


Sorry it took a minute for me to respond to this, but @TPD, you’re correct buddy in that Forbes methodology is found at the bottom of the linked page, and it states:

Quote:
METHODOLOGY: Revenue and operating income (earnings before interest, taxes, depreciation and amortization) are for the 2021-22 season and are net of revenue sharing and arena debt service. We use revenue multiples to calculate our team values (equity plus net debt) based on the economics of each team’s current arena deal. Our figures include revenue that team owners get from non-NBA events at their arena. For example, the Warriors and the Nets control their arenas, so our figures combine P&L statements. In contrast, the Knicks and the Lakers are tenants in their arenas, so we attribute the revenue and expenses their respective lease agreements allot for each team. All figures are in U.S. dollars based on the average U.S.-Canada exchange rates during the 2021-22 season. The information used to compile our valuations primarily came from the teams, sports bankers, media consultants and public documents, such as arena lease agreements and bond documents.


Since revenue sharing is included within their methodology, luxury taxes by default would be in play within those calculations. So the figures involved in the Forbes article integrate the luxury taxes that were spent in either turning a profit or in BK’s case, being in the red.

isn't it astounding that the warriors took home 206 mil after Luxury TAX and Arena DEBT????
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