As NBA lockout talks continue on Thursday, little has leaked about Wednesday’s 15-hour session between top officials from the league and players’ union. But Zach Lowe of SI.com reports that, just as was the case last week, luxury tax reform remains the greatest hurdle to clear when it comes to reaching agreement on salary cap system issues.
NBA Lockout: Union, Owners Reportedly Still At Loggerheads Over Luxury Tax
Lowe reports that while specifics of the owners’ most current proposal are unknown, a source indicates that one facet that the union despises remains on the table.
Sources close to the talks indicated last Thursday that the league had softened the tax ratios, but that the multiplying penalties for routine payers remained. A source close to the talks tells me that remains true today-that the league has stood by the multiplied penalties for teams that pay the tax three or more times during a five-year span.
This type of regulation would serve to keep certain teams from becoming habitual taxpayers. One can't help but think of the New York Knicks and Dallas Mavericks when considering the proposal. The Mavericks have paid the tax in every season since it was established more than a decade ago; the Knicks have only avoided it once in the past decade, in 2010-11.
It’ll be interesting to see whether the union remains steadfast against any multiplier effect, or will accept a dampened multiplier rule.
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