Rumor: The Luxury Tax is not an Issue for the Lockout

According to Adrian Wojnarowski of Yahoo! Sports the Luxury Tax is not the issue of the Lockout.

Adrian Wojnarowski reports for Yahoo! Sports:

While details were still unclear how a punitive luxury tax system would work for teams exceeding the salary cap, one league source involved in the talks told Y! Sports on Thursday night: “The tax is not the issue. The exceptions are where the fight is.”

The owners have largely relented on letting players use their “Larry Bird rights” to re-sign with teams that are over the cap, but the owners don’t want to permit teams paying luxury tax to be able to sign players to the midlevel and bi-annual exceptions, a source said.

The two sides could be closing on a three-year maximum for signing players to the midlevel exception, starting at $5 million per season, sources said.

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