Bleacher Bums Forum

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2. Luxury tax still based on full season payroll but any tax to be paid pro-rated

So, that means we'll be in 3-time-over penalty, correct? 

Which means what in terms of draft-pick penalty? 
1.  If we sign any compensation-caliber free agent, we lose our first round draft pick?
2.  And if we again stay off from comp-caliber free agent, then our first-round pick moves back 10 picks? 

And in terms of financial penalties, for next season we'll be paying 50% penalty for any dollars beyond the lux line?