$75 Million Dollars

[Birdy89]

I just read on Mark Stein's twitter that Prokhorov's tax bill for this up-coming season assuming the roster is pretty locked in will be roughly $72-77 million dollars for the luxury tax penalty.

That will be on top of a payroll in the neighborhood of $95-100 million dollars.

This guy represents what professional sports should really be about.

If you want to own a team it should be an expensive play toy, not something you are counting on to make money for you. The Nets are a nice hobby for him. A tad pricey, but he doesn't have to worry about the money.

Once the repeater tax really kicks in the bills might get so extreme even he starts to notice them.

 

[KB]

I just read on Mark Stein's twitter that Prokhorov's tax bill for this up-coming season assuming the roster is pretty locked in will be roughly $72-77 million dollars for the luxury tax penalty.

That will be on top of a payroll in the neighborhood of $95-100 million dollars.

This guy represents what professional sports should really be about.

If you want to own a team it should be an expensive play toy, not something you are counting on to make money for you. The Nets are a nice hobby for him. A tad pricey, but he doesn't have to worry about the money.

Once the repeater tax really kicks in the bills might get so extreme even he starts to notice them.

So they are going to really be paying almost 200 mil for that team....if the contracts all extend past this season in the year 2014 they could be paying over 250+ mil...without making any moves...which would mean roughly half a billion dollars spent over the last 3 seasons of basketball since owning the team, not counting what he paid for it.

too many years of that could make a lot of billionares broke if they aren't paying attention.....

 

[Birdy89]

So they are going to really be paying almost 200 mil for that team....if the contracts all extend past this season in the year 2014 they could be paying over 250+ mil...without making any moves...which would mean roughly half a billion dollars spent over the last 3 seasons of basketball since owning the team, not counting what he paid for it.

too many years of that could make a lot of billionares broke if they aren't paying attention.....

I am sure they are still generating a shit ton of revenue, so it is not like he will lose a $100 million a year on the team or anything like that.

I have no doubt though that he will probably be losing anywhere from $50-100 million a year for a few years coming up, but with his kind of money it is little more than a rounding error.

 

[Fuggles]

I just read on Mark Stein's twitter that Prokhorov's tax bill for this up-coming season assuming the roster is pretty locked in will be roughly $72-77 million dollars for the luxury tax penalty.

That will be on top of a payroll in the neighborhood of $95-100 million dollars.

This guy represents what professional sports should really be about.

If you want to own a team it should be an expensive play toy, not something you are counting on to make money for you. The Nets are a nice hobby for him. A tad pricey, but he doesn't have to worry about the money.

Once the repeater tax really kicks in the bills might get so extreme even he starts to notice them.

There is a line between not being a cheap SOB and buying a championship and Prokrohov crossed it. That is kinda the opposite of what pro sports should be about.

 

[Birdy89]

There is a line between not being a cheap SOB and buying a championship and Prokrohov crossed it. That is kinda the opposite of what pro sports should be about.

What you see as buying a championship I see as a guy being committed and putting his money where his mouth is.

A pro sports team is a big boy toy. If you can't afford to run big losses, you are in the wrong business. If you have to borrow a bunch of money to buy the team, you are in the wrong business.

The problem is too many towns are getting stuck with Frank McCourt types that had to borrow heavily to buy the team, and then bitch and moan about not going into the tax because they can't afford it because they have such high debt service levels before they spend dollar 1 on the actual product on the field.

In all sports it is time to start pushing out those marginal owners who really have no business owning a team.

Guys like Prokhorov are the future, and professional sports will be that much better for it.

 

[Biw]

There is a line between not being a cheap SOB and buying a championship and Prokrohov crossed it. That is kinda the opposite of what pro sports should be about.

If this article was about Gilbert, I have a hard time believing you would make that same argument.

 

[Phills14]

I just read on Mark Stein's twitter that Prokhorov's tax bill for this up-coming season assuming the roster is pretty locked in will be roughly $72-77 million dollars for the luxury tax penalty.

That will be on top of a payroll in the neighborhood of $95-100 million dollars.

This guy represents what professional sports should really be about.

If you want to own a team it should be an expensive play toy, not something you are counting on to make money for you. The Nets are a nice hobby for him. A tad pricey, but he doesn't have to worry about the money.

Once the repeater tax really kicks in the bills might get so extreme even he starts to notice them.

You mean if he doesn't get his way he simply kills you?

 

[billmac91]

I think one of the big issues will become making sure you are not over cap. Typically the NBA splits all luxury tax money 50/50 with non-violators. There will be franchises keeping a close eye on Brooklyn, not to mention all other luxury tax teams. You'll likely have 20 teams splitting close to $80-90 million dollars after the NBA takes their cut.

 

[Walter White]

Pretty much in vain when you aren't even really in serious contention to win a ring.

 

[tsteele316]

If this article was about Gilbert, I have a hard time believing you would make that same argument.

if dan gilbert was dropping $200 million to be a perpetual 4 seed and 2nd round playoff exit as a best case scenario there would be far more people questioning his abilities and intelligence as owner than applauding his deep pockets.

 

[boxxer]

What you see as buying a championship I see as a guy being committed and putting his money where his mouth is.

A pro sports team is a big boy toy. If you can't afford to run big losses, you are in the wrong business. If you have to borrow a bunch of money to buy the team, you are in the wrong business.

The problem is too many towns are getting stuck with Frank McCourt types that had to borrow heavily to buy the team, and then bitch and moan about not going into the tax because they can't afford it because they have such high debt service levels before they spend dollar 1 on the actual product on the field.

In all sports it is time to start pushing out those marginal owners who really have no business owning a team.

Guys like Prokhorov are the future, and professional sports will be that much better for it.

How many multi-billions dollar owners that don't give a shit about money do you think there are?

Most billionaires didn't make their money so they could voluntarily piss it away on a sports team.

You are stating one owner out of all the professional sports teams is the future of ownership because he is willing to burn his money?? Thats asinine!

 

[NorthCoastBias]

Here's a really good comprehensive chart from ShamSports on Luxury Tax payments for every season from 2001-2013

 

[AustinCarr]

Well, the NBA as a whole will be better for it, from a corporate stance. The rest of the teams get to revenue share that, which really does help the smaller market teams.

That said:

On the whole I believe this to be a really really bad thing for the sport. The higher luxury taxes were a move to mitigate over spending and Miami style collusion...I mean team building. Circumventing this with Brute force can create a monster. It could create another Heat team, or in this case, it can create an also ran which will ultimately have no draft picks for the next half decade and an aging/ancient roster.

If that is the future then IMHO its a grim one.

 

[MikeOC33]

You mean if he doesn't get his way he simply kills you?

That is really a low blow statement and should be retracted followed by an apology.

The truth is, he won't kill you, he'll have someone ELSE kill you. Big difference... ask Aaron Hernandez.

 

[Phills14]

That is really a low blow statement and should be retracted followed by an apology.

The truth is, he won't kill you, he'll have someone ELSE kill you. Big difference... ask Aaron Hernandez.

sorry you are right. He has you killed.