vike daddy Posted June 20 Share Posted June 20 what's the luxury tax in basketball? Quote Link to comment Share on other sites More sharing options...
Worm Guts Posted June 21 Share Posted June 21 15 hours ago, wcblack34 said: Because of the salary implications. The Wolves are already in luxury tax territory. If Lebron is coming in, salary has to go out somewhere. If Lebron is going to play here, I think it would have to be on a vet min deal. Lebron hasn't really shown the inclination to give discounts, but in general veterans playing for the minimum for a chance a championship isn't particularly uncommon in the NBA. And this would be the opportunity to play for a championship on a team with his son. It's probably very unlikely to happen though. Quote Link to comment Share on other sites More sharing options...
SemperFeist Posted June 21 Share Posted June 21 15 hours ago, vike daddy said: what's the luxury tax in basketball? The NBA uses a soft cap. Meaning that they are allowed to spend more than what the league sets the salary cap at. But, if teams do spend more than the salary cap, ownership has to pay a “luxury tax” for how ever much they are over the cap. Quote Link to comment Share on other sites More sharing options...
vike daddy Posted June 21 Share Posted June 21 20 minutes ago, SemperFeist said: The NBA uses a soft cap. Meaning that they are allowed to spend more than what the league sets the salary cap at. But, if teams do spend more than the salary cap, ownership has to pay a “luxury tax” for how ever much they are over the cap. hmmm... so it comes down to the miserly/spendthrift ratio of the team owner? willingness to spend more to hopefully buy a championship? how many owners go over the limit and pay the tax? what is the TWolves' owner like in that regard? Quote Link to comment Share on other sites More sharing options...
Worm Guts Posted June 21 Share Posted June 21 17 minutes ago, vike daddy said: hmmm... so it comes down to the miserly/spendthrift ratio of the team owner? willingness to spend more to hopefully buy a championship? how many owners go over the limit and pay the tax? what is the TWolves' owner like in that regard? It's not necessarily that simple, as there a more rules to how you can sign players once you get over the salary cap. I think they changed the rules somewhat recently because hear a lot of talk about the 2nd apron and I don't know specifically what that means. I just know the Wolves are in it and it's pretty restrictive on the ways you can add salary. 2 Quote Link to comment Share on other sites More sharing options...
wcblack34 Posted June 21 Share Posted June 21 2 hours ago, vike daddy said: hmmm... so it comes down to the miserly/spendthrift ratio of the team owner? willingness to spend more to hopefully buy a championship? how many owners go over the limit and pay the tax? what is the TWolves' owner like in that regard? The Wolves are in a bit of a limbo right now. Glen Taylor is trying to back out selling the majority stake to A-Rod and Lore. There's going to be a lot of legal wrangling before it's all said and done. From what I've read, Lore and Rodriguez will prevail, but it might take a while to figure out. So it's not even entirely clear what direction they'll go regarding luxury spending. 1 Quote Link to comment Share on other sites More sharing options...
vike daddy Posted June 21 Share Posted June 21 5 minutes ago, wcblack34 said: The Wolves are in a bit of a limbo right now. Glen Taylor is trying to back out selling the majority stake to A-Rod and Lore. There's going to be a lot of legal wrangling before it's all said and done. From what I've read, Lore and Rodriguez will prevail, but it might take a while to figure out. So it's not even entirely clear what direction they'll go regarding luxury spending. why does an owner want to sell a championship level team? Quote Link to comment Share on other sites More sharing options...
Worm Guts Posted June 21 Share Posted June 21 38 minutes ago, vike daddy said: why does an owner want to sell a championship level team? He agreed to sell it 2-3 years ago, before they were a championship level team. Now he's trying to back out. 1 Quote Link to comment Share on other sites More sharing options...
vike daddy Posted June 21 Share Posted June 21 22 minutes ago, Worm Guts said: He agreed to sell it 2-3 years ago.... okay... so why didn't the sale take place a long time ago? Quote Link to comment Share on other sites More sharing options...
marshpit23 Posted June 21 Share Posted June 21 2 hours ago, wcblack34 said: The Wolves are in a bit of a limbo right now. Glen Taylor is trying to back out selling the majority stake to A-Rod and Lore. There's going to be a lot of legal wrangling before it's all said and done. From what I've read, Lore and Rodriguez will prevail, but it might take a while to figure out. So it's not even entirely clear what direction they'll go regarding luxury spending. It’ll be an interesting outcome. Doogie thinks Taylor will prevail. I would personally prefer Rodriguez and Lore, especially with Bloomberg’s $$ included. We are gonna need a new arena and Taylor has been quoted saying he thinks the Target Center is adequate. It’s not. 1 Quote Link to comment Share on other sites More sharing options...
Worm Guts Posted June 21 Share Posted June 21 3 hours ago, vike daddy said: okay... so why didn't the sale take place a long time ago? I don’t know other than this is the way Taylor wanted to do it. Lore-Rodriguez buy smaller percentages over time until they are the majority owners. But when they were about to get the majority, Taylor says they missed the deadline and doesn’t want to sell anymore. I think Lore and Rodriguez currently own 36%. Its odd. 1 Quote Link to comment Share on other sites More sharing options...
vike daddy Posted June 22 Share Posted June 22 Downtown Minneapolis will shut down after rush hour on Friday night, as thousands are expected to celebrate Prince and the 40th anniversary of "Purple Rain." First Avenue North from the front doors of the night club to Hawthorne Avenue and North Ninth Street between Ramp A and Hennepin Avenue will close for the celebration. It's like a family reunion for most since Prince always said he did not have fans, but family who enjoyed his music. https://www.cbsnews.com/minnesota/news/prince-40th-anniversary-purple-rain-minneapolis/?utm_campaign=true_anthem&utm_medium=social&utm_source=facebook&fbclid=IwZXh0bgNhZW0CMTEAAR2fKugqEjwrX11T8rogNs4mYUtNAk_l-DsP905Y_OV1-kajTWOa9_n0B5Q_aem_vGIXV7k_PZLf5oXpS34iDA 1 Quote Link to comment Share on other sites More sharing options...
Ozzy Posted June 22 Share Posted June 22 On 6/21/2024 at 4:14 PM, Worm Guts said: I don’t know other than this is the way Taylor wanted to do it. Lore-Rodriguez buy smaller percentages over time until they are the majority owners. But when they were about to get the majority, Taylor says they missed the deadline and doesn’t want to sell anymore. I think Lore and Rodriguez currently own 36%. Its odd. Yeah that was crazy, I do hope Lore-Rodriguez get the team. Hell they were there on the road in the playoffs courtside, at least A-Rod was and congratulated guys after the game on the court. Did not see Glen Taylor on the road doing that... A lot of lawyers will get paid a lot of money to figure it out, but when it is all said and done not sure Lore-Rodriguez did anything wrong at all and it is just Taylor having sellers remorse. They dude is old, is already rich as can be and made a ton off the original investment of buying the Wolves, just sell them and deal with it. He bought the team originally in 1994 for $88 million and sold them for $1.5 billion. Oh poor you.... I suck at math but what is that a 98% profit percentage or something? Sure inflation comes into play but still.... Freaking A Curious who the Wolves go after for their next PG or backup PG. Would love to bring back Tyus Jones and eventually have him take the place of Conley but not sure they have the cash for that. Kyle Anderson returning would be nice but again not sure they have the cash to pull it off, and he can be a point forward at times but other times does basically nothing. 1 Quote Link to comment Share on other sites More sharing options...
vike daddy Posted June 22 Share Posted June 22 (edited) 38 minutes ago, Ozzy said: He bought the team originally in 1994 for $88 million and sold them for $1.5 billion. Oh poor you.... I suck at math but what is that a 98% profit percentage or something? welllll... more like a 1700% return on his original investment. @swede700, can you run the numbers? lol Edited June 22 by vike daddy 1 Quote Link to comment Share on other sites More sharing options...
Cearbhall Posted June 23 Share Posted June 23 12 hours ago, vike daddy said: welllll... more like a 1700% return on his original investment. @swede700, can you run the numbers? lol An investment of $88MM returning $1.5B in 30 years is an annualized ROI of 9.91%. That is good but nothing remarkable IMO. Notably, it does not take into account any additional investment Taylor needed to put in along the way nor does it take into account any profits Taylor took out along the way. https://www.calculator.net/roi-calculator.html?beginbalance=88&endbalance=1%2C500&investmenttime=length&investmentlength=30 For comparison's sake, the S&P 500 had a ROI of 8.4% per year from 1994 to 2024. That does not take into account dividends, which one could have been reinvesting along the way. By reinvesting the dividends, the annualized ROI would be 10.27% and $88MM would have become $1.722B. https://www.officialdata.org/us/stocks/s-p-500/1994?amount=88&endYear=2024 Taylor's done okay on the investment. It's hard to gauge how well without knowing how much profit he was pocketing along the way. When considering that, also consider that he was actually working for that profit. Dropping money into an index fund requires almost no work along the way. For those of us that have 30 years left on this earth and don't want to manage an asset (like being a landlord or owning a business) index funds are a simple option that has historically done decently well. You might do better owning a business, but it is quite a bit more complicated of an investment to deal with. You might also do worse owning a business. Either way, turning $88MM into $1.5B in 30 years is nothing that stands out as super remarkable. Take it as a lesson in why you ought to invest as early as possible to get to a cushy retirement. 4 Quote Link to comment Share on other sites More sharing options...
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