SHANNYPLAN
Registered User
- Nov 24, 2016
- 5,224
- 2,609
Earlier this season it was announced that the Salary Cap for the 2020-2021 Season will fall between $84 and $88.2 million. With the impact of COVID-19 and the season likely being cancelled, it is unlikely that the Cap will increase beyond the current $81.5 million, with rumours that it may actually go down. With the amount of teams struggling to stay below the cap to begin with, and the financial impact on small market teams as a result of the cancellations, it may be time to finally implement a Luxury Tax similar to the NBA.
This would allow teams (most likely contenders) to spend above the salary cap and be taxed as a result, with the tax money going towards supporting the smaller market teams that have been impacted by recent events. Not only would this allow teams to remain in contention, but it would allow the owners of small market teams to recover and also return to contention.
Thoughts?
This would allow teams (most likely contenders) to spend above the salary cap and be taxed as a result, with the tax money going towards supporting the smaller market teams that have been impacted by recent events. Not only would this allow teams to remain in contention, but it would allow the owners of small market teams to recover and also return to contention.
Thoughts?