"You should never be near the luxury tax line." Sorry, but that's utter nonsense and flies in the face of the most basic arithmetic - addition and subtraction. Your other figuring is equally questionable. For example, if the Bulls did have a salary of $56.8M, their revenues would certainly go down by about $27.5M, if not more. Nobody buys E'twaun Moore jerseys, but they do buy DRose ones. A team that doesn't at least act somewhat like they'll accept winning won't fill the stands. You assume the team's revenues are a fixed number and all they can do to affect profit is tweak the expenses. While watching expenses is a way to increase profits, increasing sales without increasing expenses means more profit, too. Taken to the extreme, your logic fault is easy to see. If the Bulls paid $0 in salaries, would they still have $120M in revenues? No. Nobody goes to the games to watch 5 players on the opposition play 0 players on the home team. Ticket sales would be $0. Maybe this will help: http://business.tutsplus.com/tutori...-need-to-know-to-run-your-business--cms-21996
