Hopefully we are seeing this play out:
They are currently at the point where the actual payroll is significantly higher than the luxury number. Hopefully they benefit from that as I hoped they would 3 years ago.
Well someone doesn’t understand something, and it probably means it’s us without some bit of info about the financials of the organization.
The only way this makes sense from a luxury tax perspective is if the long term plan is to jack payroll up so high 5 years from now that they benefit from having a cap number less than the actual payroll number. If they can pay $260M on a cap number of $240 in 5 years that would be pretty sweet.
They are currently at the point where the actual payroll is significantly higher than the luxury number. Hopefully they benefit from that as I hoped they would 3 years ago.