Soft/Hard Cap amounts?

Discussion in 'Pistons and NBA' started by max, Oct 29, 2005.

  1. max

    max All-Star

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    Anyone out there have any salary cap figures both historical and projected future?

    Assuming Tay is re-signed for 9mil/season. They are pretty close so lets assume something like Tay gets a 45mil contract but Dumars gives it to him in equal installments of 9 mil/season as a concession.

    I am wondering that perhaps locking Tay in at 9mil/season is a pretty good deal 2-5 years from now.

    I can dig around myself but thought I would post it here 1st if anyone has that info on hand.
  2. roscoe36

    roscoe36 All-Star Administrator

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  3. max

    max All-Star

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    Thanks.

    What I am basically looking for is total cap amts set by the league.

    I want to use it as a comparison to see if 9mil/season in say 2007 is equivalent to 6 mil/season in 2002.

    Basically when we signed Billups in 2002 and Wallace in 2000 6mil was a lot of cash. It still is but its not as high as it was back then. So perhaps Tays contract amt is really going to be looking like a pretty good bargain in the future.
  4. himat

    himat Bench Warmer

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    I hope he signs its the 29th, and we've only got till the 31st. If it doesn't work out we can still resign him though in the summer.
  5. roscoe36

    roscoe36 All-Star Administrator

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  6. max

    max All-Star

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    thanks

    The cap has increased by around 6 mil. What we need to know is the Hard cap or the dollar figure at which luxery tax will kick in. Something tells me Davison will not agree to going over that.

    From Hoops World http://www.hoopsworld.com/article_13143.shtml

    #10 – The One Time Cut Exception & Luxury Tax… The NBA will allow each team to cut one player this summer, without tax penalty on that cut – teams will still be required to pay that player what is guaranteed under their contract, but this will give several teams a chance to cut dead weight or bad contracts. This will be a one time rule, and will likely be dubbed the “Allan Houston” Exception… The trade rules will be changed, making trades easier - teams will now be able take on up to 125% of the salaries they send out plus or minus $100,000 - a considerable change from the 115% rule that made deals so hard to consumate... The NBA will still tax over spending owners, what has changed is the gap between allowed percentages and over spending… The NBA will guarantee 57% of revenue is paid to players… the luxury tax will kick in at 61.5% (after the Escrow tax is applied) so if revenue projections are off by 10 to 15%, the tax will kick in.

    So what sense does this make? You have a difference of 4.5% of total revenue.

    Is the hard cap then Soft Cap + 4.5%*Total Revenue?

    I just hope we have enough to sign both Prince and Ben and still be able to re-sign Billups in 08 and Darko in 07.
  7. roscoe36

    roscoe36 All-Star Administrator

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    The difference of 4.5% is estimated to be the amount of escrow held back I think.

    Escrow is 10% of player salaries. It's held in "escrow" until the end of the season when the books are cooked and the filing cabinets dumped into the Detroit River (oops did I say that?).

    The 10% held back in Escrow is meant to make up the difference between any overage in salaries and the BRI (basketball related income) % (soft cap).

    Salaries are not supposed to exceed 57% of BRI. When they do, the league takes money out of escrow and redistributes it (unevenly) back to the owners. If the amount in escrow is not enough to cover the overage, teams over the cap start paying tax. If salaries are lower than the soft cap amount, or less than the full amount is needed to compensate for an overage, the remainder of the escrow fund is returned to players.

    I think that is how the second number of 61.5 % was arrived at. After Escrow is used up. Then the big spending owners have to open up their wallets.

    What does this mean? Well, tax has been triggered for 3 or 4 straight years. Expect to pay tax if you are well over the cap this year. Salaries are not dropping even with the 6 million dollar increase in cap room.

    The question is not if the Pistons can re-sign their guys under the cap (in my opinion, impossible) but rather how far over the cap (and into tax territory) are they willing to go?

    I could be wrong on this...
    http://members.cox.net/lmcoon/salarycap.htm
    -

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