The NLL attached with their press release information on the new luxury tax and on the salaries for players. We have them listed below for your information.
Beginning with the 2014 Regular Season, the NLL will implement a Competitive Balance (Luxury) Tax system. Clubs spending over a pre-determined threshold amount will be assessed a tax. The tax amount will be dependent on how far a Club exceeds the threshold. Luxury Tax payments will be placed into a distribution fund and subsequently dispersed in equal shares to each Club that did not exceed the Luxury Tax threshold in a given year. The Luxury Tax thresholds for the 2014 Season are as follows:
Up to $400,000 0%
$400,001 – $425,000 25%
$425,001 – $450,000 50%
$450,001 – $475,000 75%
Over $475,000 100%
Commencing with the 2016 season, each threshold will increase $5,000 every season through the term of the collective bargaining agreement. For the 2014, 2015, and 2016 seasons, Clubs assessed a tax will pay a graduated/marginal tax. For example, a team paying $470,000 in taxable player consideration would pay $33,750 in to the distribution fund.
($25,000 x 0.25 = $6,250. $25,000 x 0.50 = $12,500. $20,000 x 0.75 = $15,000.
$6,250+$12,500+$15,000 = $33,750).
For the 2017 season through the term of the agreement, Clubs assessed a tax will pay a full tax rate. For example, a team paying $480,000 in taxable player consideration would pay $52,500 in to the distribution fund. ($70,000 x 0.75 = $52,500).
The new collective bargaining agreement between the NLL and the PLPA includes modifications to player salary limits. Rookie salary limits are expressly defined for each year of the agreement.
For second year players, the CBA provides a range within which a Club and a Player may negotiate. Veteran Players, Players having participated in all or part of two NLL seasons, shall be eligible to obtain a salary between the Veteran Minimum and Veteran Maximum limits.
For the first two seasons of the agreement, Player game compensation shall remain constant with the exception of second year Player salaries in 2014. For the upcoming 2014 season only, second year Players can earn compensation anywhere between the second year Player Minimum and the Veteran Maximum. The salary limits for the 2014 and 2015 are as follows:
Veteran Maximum: $27,177
Veteran Minimum: $13,678
Rookie Salary: $9,207
Second Year Salary: 2014 – $11,000 – $27,177, 2015 – $11,000 – $15,000
Franchise Player: $33,971
Commencing with the 2016 season, salaries shall increase 3.5% each year.
