10-15-2022, 11:40 PM
(10-15-2022, 09:09 PM)audiosway Wrote: The Warriors literally do not care about the luxury tax.
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Forbes says that they pulled in $258 million last year and lost $44 million dollars. Meanwhile, the local beat reporters said they brought in over $700 million in revenue last year counting outside sources. When you factor in the taxes they paid they probably walked away with around $100 million and a title. Plus a 19% growth in overall team valuation. They will take that every year.
"The Warriors literally do not care about the luxury tax." .... While I agree with your general premise above (that the Warriors revenues make the tax less onerous to them), respectfully I don't think the specific statement here is accurate at all.
I would say they do care - at a certain level. And I would wager that the numbers we were envisioning earlier (HALF A BILLION in tax, and total player pay incl tax of about $750 MILLION) were FAR beyond their ability to stomach.
The growth in franchise value? That impresses on paper, but it isn't really the game-changer it seems, when the ownership isn't selling the team. They expect to also make the annual bottom line (revenues minus cost to generate it) work too, as a general rule, in order to allow the owners to personally profit year-to-year from their business's success (the huge revenue streams) AND keep the franchise. While they do want the franchise value to grow, they also want to be kings now, not merely create huge asset value for some heir to reap some day.
To that point, I do think that the AW contract at less-than-max will help to that end, but that they still will opt to shrink more.