Chinese Real Estate Bubble
Bah, Econbrowser links to Chinese property speculation
Hugh Hendry can shit himself again for making yet another correct and ultimately vague prediction.
Bulls fans discuss the nba luxury tax, orlando magic, and marginal costs
As I repeatedly say…
Dwight Howard is a bargain right at his current price. Shift that $7 million in tax payment to him and all of a sudden Redick and Howard are paid closer to their worth.
Sheesh.
In the past 10 years, just four team owners have not paid a luxury tax and are not on pace to pay one this year: Donald Sterling, Jerry Reinsdorf, Chris Cohen (Golden State), Bob Johnson (Charlotte).
Two owners’ teams averaged an operating income of over +$10 million per year while their teams have lost over 60% of their games: Donald Sterling and Jerry Reinsdorf.
by tyger1147 on Jul 15, 2010 12:15 PM CDT up reply actions
I don’t really agree with this reasoning
The last guy signed is the guy you are paying the luxury tax on. They can have Dwight Howard without paying the luxury tax. They can’t have JJ Redick without paying the luxury tax. Therefore, the expenditure forcing the paying of the luxury tax is JJ Redick. Now, you can go ahead and say because we have Dwight Howard at such a reasonable salary, it is ok that we are paying $14 million for JJ Redick, but I don’t think it really makes sense to add the $7 million to Howard’s salary.
“The last guy signed is the guy you are paying the luxury tax on”
you’re paying the luxury tax on the whole team. So it’s if you think the team is worth that much. They can find ways to shed salary from now until the end of the season (when the tax level is calculated)
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by your friendly BullsBlogger on Jul 15, 2010 2:17 PM CDT up reply actions 2 recs
http://en.wikipedia.org/wiki/Marginal_cost
Brad Miller is god.
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