Post by Adam Smasher on Sept 18, 2018 14:06:46 GMT -6
Starting at noon EST January 15, any team may buy an additional 20 percent of Salary Cap space, always rounding up. This is called paying the Luxury Tax.
Example:
The ARBYS Salary Cap is $120M. When allowed, teams may increase their payroll up to $144M ($120M + 20 percent).
The cost is $50, which goes directly into the championship prize pool.
Any team with a total salary above the ARBYS Salary Cap must pay the Luxury Tax within 24 hours, or their last transaction(s) will be reversed until they are back under the Salary Cap. In addition, they will incur a (3) category win penalty for their current matchup. See Sec. 003 (Honor System) for more information and an example.
Additional Salary Cap room acquired via the Luxury Tax applies to all uses and contracts, including the team’s ability to bid on free agents. In effect, a team paying the Luxury Tax “buys” 20 percent of additional salary space.
Example:
For the 2017-18 season, the ARBYS Salary Cap is $120M. Team A trades for Klay Thompson, who has a $19M salary, and takes their total salary to $127M. Rather than cutting other contracts, Team A decides to pay the Luxury Tax and increases their Salary Cap to $144M. After signing Thompson, Team A has an additional $17M in Salary Cap space to use in FAAB or any other purpose [Luxury Tax Cap ($144M) - Total Team Salary ($127M)].
All Luxury Tax payments are non-refundable. Owners may not get their Luxury Tax payments back, even if their team salary drops back below the ARBYS Salary Cap for any reason.
For now, the LeagueSafe system does not allow owners to pay midseason fees until the season is over. For that reason, owners will have to pay their Luxury Tax payments via PayPal or Venmo directly to the League Commissioner, who will then pay the full amount to the League Champion at the end of the postseason.
Example:
The ARBYS Salary Cap is $120M. When allowed, teams may increase their payroll up to $144M ($120M + 20 percent).
The cost is $50, which goes directly into the championship prize pool.
Any team with a total salary above the ARBYS Salary Cap must pay the Luxury Tax within 24 hours, or their last transaction(s) will be reversed until they are back under the Salary Cap. In addition, they will incur a (3) category win penalty for their current matchup. See Sec. 003 (Honor System) for more information and an example.
Additional Salary Cap room acquired via the Luxury Tax applies to all uses and contracts, including the team’s ability to bid on free agents. In effect, a team paying the Luxury Tax “buys” 20 percent of additional salary space.
Example:
For the 2017-18 season, the ARBYS Salary Cap is $120M. Team A trades for Klay Thompson, who has a $19M salary, and takes their total salary to $127M. Rather than cutting other contracts, Team A decides to pay the Luxury Tax and increases their Salary Cap to $144M. After signing Thompson, Team A has an additional $17M in Salary Cap space to use in FAAB or any other purpose [Luxury Tax Cap ($144M) - Total Team Salary ($127M)].
All Luxury Tax payments are non-refundable. Owners may not get their Luxury Tax payments back, even if their team salary drops back below the ARBYS Salary Cap for any reason.
For now, the LeagueSafe system does not allow owners to pay midseason fees until the season is over. For that reason, owners will have to pay their Luxury Tax payments via PayPal or Venmo directly to the League Commissioner, who will then pay the full amount to the League Champion at the end of the postseason.