FanPost

"Luxury Tax Strategy"


Can someone explain why it's not good strategy to enter the luxury tax before having a very good team already in place?

I've heard little things here and there that suggest that if a "bad" team enters the luxury tax, they are not only wasting their money on a bad team, but they are actually stuck/unable to improve their team going forward.

I understand that teams lose their rights to various exceptions when they enter the luxury tax, but what are these specifically? For instance, when is a team no longer allowed to use the MLE, the mini-MLE, and so forth? Also, what does a team in the tax miss out on in future seasons/offseasons?

With respect to the Warriors, I know Lacob and co. have said they would be willing to spend the money necessary to put a winning product on the court, but I think myself and many others would benefit from a knowledgeable person spelling out why it's important to wait to go into the tax. (I really want to support the new regime's decisions, but I don't quite understand the rules controlling them.)

Thanks!

This FanPost is a submission from a member of the mighty Golden State of Mind community. While we're all here to throw up that W, these words do not necessarily reflect the views of the GSoM Crew. Still, chances are the preceding post is Unstoppable Baby!

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