Quote:
Originally Posted by Casey2296
I assume some of those were/are designed to avoid the luxury salary tax tiers.
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I think that the average annual value (AAV) of the contract is what is used for calculating a team's salary for purposes of the luxury tax tiers so a 5 year contract for $100 million counts as $20 million toward the team's salary total for the year regardless of how many years money is deferred over. The deferred payment just helps give teams some cash flow flexibility along with some of the other tax benefits others have listed.
07-03-2022, 01:54 PM
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