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After all that, the Knicks still dodged the luxury tax

Jul 23, 2011, 9:28 AM EDT

Donnie Walsh

The Knicks went from being a money-burning loser to a cost-effective playoff team with two superstars in just a few years under Donnie Walsh. How cost effective? They brought in a second superstar last season in Carmelo Anthony after paying through the nose for Amar’e Stoudemire, and they still dodged the luxury tax. From the New York Post:

Give former Knicks president Donnie Walsh a pat on the back. The NBA announced yesterday its audit for the 2010-11 season is complete and, according to a person familiar with the situation, the Knicks did not pay a luxury tax for the first time since the now-expired collective bargaining agreement was reached in 1999.According to a person debriefed on the audit, the Knicks 2010-11 payroll finished over the salary cap following the Carmelo Anthony bonanza, but finished at $67 million — $3 million less than the luxury-tax threshold.

via Knicks avoid luxury tax – NYPOST.com.

Naturally Donnie Walsh stepped down after the season because James Dolan wanted more of a commitment from him and they’re still searching for a replacement, but really, things are great!

It’s still pretty notable what has been done to the Knicks. The Knicks used to overpay for a terrible team and now they underpay for a playoff contender, even if they’re not going anywhere without plunking down serious money for a supporting cash. Then again, there’s no telling if the new salary cap will allow them to spend. That’s got to be a concern in these CBA talks for owners like Dolan or the Heat’s Arison. They need to maintain the ability to spend around their superstar players. The Knicks were under the luxury tap this year, which is great for them. But if they want to take a step forward, they need upgrades, which won’t be possible without any room under the new cap.

Unless they rollback salaries. And then things get more and more complicated.

  1. surly1n1nd1anapol1s - Jul 23, 2011 at 9:56 AM

    Impressive work by Donnie. Naturally the Posing Prince fires him.

  2. thetooloftools - Jul 23, 2011 at 11:43 AM

    This NBA lockout is not going to go away soon.
    Bosh and James walking on max deals to “play together” and win “not two, not three not four or five” rings
    is really messing up any leverage the players may have thought they had where money is concerned because those two sent the word out that “it’s not about the money”.
    Well, if it’s not about the money fella’s, what’s the problem?

  3. miamatt - Jul 23, 2011 at 4:36 PM

    Stop posting your idiotic cokkie cutter lebron rant… Get a life!

  4. miamatt - Jul 23, 2011 at 4:37 PM

    What is this ‘supporting cash’ of which you speak?

  5. evh12345 - Jul 23, 2011 at 10:12 PM

    Good article, but does no one proofread or edit?

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