The Spurs need more luxury.
That’s the gist of the reasoning that came from the NBA’s new report on luxury-tax changes, which was issued Tuesday and has been widely circulated since then.
The league’s executive vice president of basketball operations, Bob Myers, made the bold assertion in a report published by USA Today and ESPN that the Spurs’ projected $42 million tax bill will be roughly $10 million lower than what the Spurs were projected to pay in the past two seasons.
“The new taxes reflect the significant growth in the team’s revenue that is offset by the significant decline in net income,” Myers wrote.
NBA Commissioner Adam Silver, in a statement, said, “The NBA is committed to reducing the cost of attendance in the league and the revenue from ticket sales, merchandise, apparel, technology and other sources.
We are committed to making sure that we maximize revenue from our revenue streams and that we protect our franchises’ financial position.”
The Spurs are currently projected to earn just over $18 million in luxury tax in 2019-20, the first year of the new tax changes.
In 2016-17, the Spurs, who had the fifth-highest luxury tax bill in the NBA, paid $21 million in tax.
If the Spurs are expected to spend $11 million more per season in 2019 and 2020, then they would still owe $30 million.
The Spurs could save $3 million on luxury tax if they spend less than $12 million annually, or $5 million if they exceed $12.5 million annually.
The new taxes will take effect on March 1, 2020, so that means the Spurs will have to make their 2019-21 season debut by the start of the 2020-21 league year on March 15.
What’s next for the Spurs?
The team’s luxury tax liability will increase as it has in the years since its first luxury tax payment in 2008-09.
This year, the team will have more than $35 million in revenue and will owe nearly $35.6 million in taxes.
The tax increases are expected because of a change in the tax law that took effect in 2018.
The bill will no longer be paid on income earned outside of the NBA.
This means that the team is now free to use the tax savings to buy lower-priced tickets and merchandise, like the Spurs recently did.
There are some signs that the new taxes are having an impact.
The team has already had to pay nearly $10.8 million in fines for violations in 2018-19 and $9.5,000 for exceeding its tax payment threshold in 2019.
The salary cap is expected to rise this year, and the NBA is considering a cap increase to keep up with the growth in revenues and the cap.
In 2019-2020, the NBA will be spending $2.9 million per game on salaries, bonuses, travel and other expenses.
This will be about $3.1 million more than the $2 million per team per game that the NBA paid in 2019, the year before the tax changes took effect.
According to the report, the total value of the tax bill for 2019-19 is $29.6 billion.
A spokesperson for the team did not immediately respond to a request for comment on the tax impact of the proposed tax changes on the Spurs.
Are the Spurs the new Golden State Warriors?
The tax changes have also impacted other teams, including the Golden State’s Golden State Warrior.
The Warriors, who play the Warriors in the Finals, had to shell out more than their previous luxury tax debt because of the $13.9 billion tax increase.
Golden State’s tax bill has ballooned by $13 million since last season, according to ESPN Stats & Info, with a $8.4 million increase in tax on revenues, an increase of nearly 50 percent from the previous season.
ESPN reported that Warriors President Chris Dempsey had no comment on his team’s tax situation.
It’s possible that the Warriors could face a tax increase if they can no longer use their tax savings on higher-priced ticket sales or merchandise, which is an easy way for the Warriors to avoid paying their share of the luxury tax.