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Old 08-21-2003, 02:54 AM   #27 (permalink)
Dean Gordon
Major Leagues
 
Join Date: Apr 2002
Location: vancouver, canada
Posts: 350
For those intersted, the GMC introduced the following:

ONE-TIME correction of finances
A) Top Revenue Stream teams are scaled back to $100m (affects 4 teams)
B) Low Revenue Stream teams are brought up to $65m (affects 5 teams)

This will lower the gap from $69m to $35m....

Luxury Tax Introduced
Luxury Tax is a way of allowing the free spenders to do what they want, but giving them a dis-incentive to do so. The Luxury Tax takes a look at Total Expenses at the end of the season, following the World Series.

A) Between $90m - $95m, teams are taxed at $0.50 on the dollar (rounded up)
B) Between $95m - $100m, teams are taxed at $0.75 on the dollar
C) Over $100m, teams are taxed at $1.00 on the dollar
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