Comments on: Washington Wizards Future Part I: The Situation Room http://www.truthaboutit.net/2008/05/washington-wizards-future-part-i.html a Washington Wizards blog based in Washington, DC, member of the ESPN TrueHoop Network Thu, 09 Feb 2012 19:06:30 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Truth About It http://www.truthaboutit.net/2008/05/washington-wizards-future-part-i.html/comment-page-1#comment-192 Truth About It Fri, 09 May 2008 04:02:00 +0000 http://truthaboutitwizards.wordpress.com/2008/05/08/washington-wizards-future-part-i-the-situation-room/#comment-192 Good questions:<br/><br/>1) From <a HREF="http://members.cox.net/lmcoon/salarycap.htm#10" REL="nofollow">this site with everything you need to know about NBA salaries</a>:<br/><br/>In setting the Salary Cap, they:<br/><i>They take a defined percentage of projected BRI, subtract projected benefits (about $112 million in 2005-06), and make adjustments based on whether the previous season's BRI was above or below projections.</i><br/><br/>That defined % is 51. The luxury tax level is 61%. Without getting into BRI details, projected benefits, and other adjustments, I just divided the estimated 08-09 salary cap by .51 and then multiplied that number by .61 to get the luxury tax level. Based on the omitted figures, there could be an adjustment either way.<br/><br/>2) That globalization thing I mentioned. This was Yi Jianlian's rookie year...I think he helped increase the Chinese following of the league....can you say NBA Broadband revenue? Good questions:

1) From this site with everything you need to know about NBA salaries:

In setting the Salary Cap, they:
They take a defined percentage of projected BRI, subtract projected benefits (about $112 million in 2005-06), and make adjustments based on whether the previous season’s BRI was above or below projections.

That defined % is 51. The luxury tax level is 61%. Without getting into BRI details, projected benefits, and other adjustments, I just divided the estimated 08-09 salary cap by .51 and then multiplied that number by .61 to get the luxury tax level. Based on the omitted figures, there could be an adjustment either way.

2) That globalization thing I mentioned. This was Yi Jianlian’s rookie year…I think he helped increase the Chinese following of the league….can you say NBA Broadband revenue?

]]> By: Old Man Stubborn http://www.truthaboutit.net/2008/05/washington-wizards-future-part-i.html/comment-page-1#comment-191 Old Man Stubborn Fri, 09 May 2008 03:30:00 +0000 http://truthaboutitwizards.wordpress.com/2008/05/08/washington-wizards-future-part-i-the-situation-room/#comment-191 1. Does the luxury tax level increase in in conjunction with the salary tax?<br/><br/>2. Regardless of BRI, won't the current economic state of the US play a factor in the percentage increase in salary cap? Let's face it, the main revenue comes from teams profitability, and that falls when teams cannot increase the cost of tickets.<br/><br/>Just questions I don't have the answers to. 1. Does the luxury tax level increase in in conjunction with the salary tax?

2. Regardless of BRI, won’t the current economic state of the US play a factor in the percentage increase in salary cap? Let’s face it, the main revenue comes from teams profitability, and that falls when teams cannot increase the cost of tickets.

Just questions I don’t have the answers to.

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