It’s been explained many many times already but apparently you refuse to comprehend basic salary cap rules. Good luck in Russia Mr. Pargo.

You’re wrong. Over and over again.

Let’s assume Pargo was asking 4 million from any NBA team which is maybe a smidge but if that’s what it took to sign him than, thats what his going rate is. So to the clippers this is what Pargo equals…..

1,262,275- Jason Williams
2,300,000- Ricky Davis
   797,581 – Steve Novak
4,359,856= TOTAL

So if you are saying a trade for these three guys for Jannero Pargo is something that you feel would be a better fit for the team… Than I would have to say your GM judgement is wayyyyy offfff. I’ve had season tickets for 8 years and personally hated the way the clippers always no namer bench players on the team that looked like dear in the headlights when they touched the ball.

-Ricky Davis- can play. He’s a little out there but i still back him.
-Jason Williams- is just as good as Pargo. I’d like to remind you that He was part of the reason why Miami earned a championship.
-Steve Novak- Hes an outside gun thats a special skill that wil flourish with a little playing time.

daclipjoint, you are getting the terms salary cap and luxury tax confused… By simply going over the salary cap, you do not necessarily pay the luxury tax. I believe the actual "tax" amount is called the "salary threshold" and I think it’s about 10-14 million over the cap depending on the year. Currently the cap is $58.68 million while the tax threshold is $71.15 million (source http://sports.espn.go.com/nba/news/story?id=3479183). Any team over that $71.15 million pays the tax.

For teams under the cap (like the clippers were after brand left and renouncing the rights of maggette) they cold only spend money up to the cap limit, and after that they could only offer minimum contracts because by being under the cap they lose whats called the MLE (mid-level exception which is $5.585 million) and I’m not sure but I think they also lose bi-annual exception if they had it.

Therefore, we could NOT have signed a guy whose salary is 4 million after the camby and brevin knight trades because we didn’t have the room under the cap. Now, as for a sign and trade, it would’ve taken a combination of players to match salary and I don’t think that would be worth it for pargo. Sure he played well in the playoffs but he’s just another chucker.

The only thing I’m not sure about regarding the cap is after baron left, the warriors were in a similar situation as we were and the signed turiaf and maggette while we signed Rdavis, and traded for camby (roughly for the same salary) but they were able to go way over the cap… I’m guessing that they spent their money under the cap first before signing their restricted free agents… although there are cap holds for players in RFA, monta ellis cap hold was very low because he was a second round pick, so signing his extension put them over the top, correct?

For the dozens of salary cap reasons mentioned already. Plus Pargo is going to make 3.5 AFTER taxes. Considering the income brackets these guys are at, we would have had to offer him at least 6 million to get him the same deal.

We’re going to see alot of the mid-level guys use other leagues for leverage. While they might only be a rotation or role-player at the NBA level they can be the franchise player overseas.

Not only that, we could see alot of former college stars go overseas. Guys who lack the raw athleticism could thrive in a euro game (I think JJ Reddick would fit the bill). These former stars generally have the fundamentals to succeed but perhaps they can’t defend at the NBA level or some other deficiency that has them glued to the bench stateside.

3.8 million Russia is cash with no Uncle Sam… I think the ratio is like 5.2 million here which will make him an overpaid back up. Like i said earlier, I would rather have depth than an overpaid back-up. And to be honest I don’t think anyone else can come up with a better three player free agent signing for less than 4 million than the clippers have in Jwill R. Davis and Novak. And i’m not talking about adding up three random salaries of rookies that were signed and than have blown up.

When a eurpoean team states they will pay the taxes they mean their own countries taxes, not the US’s. As long as they are citizens, they are obliguated to pay income taxes on money earned outside of America.

As far as Pargo, even without Europe bidding, we weren’t going to get Pargo. See all the other above reasons already mentioned.

Wouldn’t surprise me if there’s a way to structure things to minimize US income taxes — perhaps incorporating and paying the player a lower salary from the corporation.
My thinking is, you get enough high-paid accountants and lawyers together, they’ll figure out a way to game the system.
In any case, Pargo avoids state income taxes. I guess he can’t avoid VATs, though.

It varies from country to country but there are rules in placed so you don’t get taxed twice on the same income. You get tax credit for what you paid in the residing country (in Pargo’s case, Russia). I’m guessing he’ll have to pay taxes on what the team covers (ie if Russia pays 1million in taxes for him that will be perceived as income and he’ll be taxed for that amount). Either way, he stands to pay alot less in taxes than he would here. That’s why alot of players love playing in FL and TX (WA has no state individual income tax either), thats 10.3% less in taxes (the California Max) than they would pay elsewhere.

If there is a tax reciprocation agreement with that county (which I am sure Russia does) then your US taxes are lowered by what YOU pay in foreign income tax. And as CChuck said you do have to pay taxes on the money that foreign team pays as tax on your behalf.

As far as state income tax, the player’s pay based on where they play, not just where their team is based. Meaning a player pays taxes on 1/82 of his salary to each state he plays a game in during the season. The benefit of signing for a team in a lower tax state is you get more games played in that state.

Didn’t Derek Jeter get into the news for being a citizen of Florida this year? For normal joes like us its definitely a “Nice Problem to have”.