Salary cap—- and luxury tax threshhold— to decline by $30 millions dollars!

"I'm doing Eric, Robert & P.J. a favor by trading them first." - Tilman J. Fertitta

 

Rockets salary 135 million 14 players next season
If Tax line at 115 million

tax = 20 million x 3.25 = 65 million

Tucker + Covington = 20 million payroll

would cost Tilman 85 million

3 regular contracts + 12 minimum contract = 115 million tax free

 

You hear that?

that’s the sound of the window closing for good

 

The root of all evil is china

 

This offseason is going to interesting and tell what we’re going to be for the foreseeable future. Morey needs to pull a rabbit from somewhere because it doesn’t look promising at all. Fingers crossed.

 

My opinions

1, For the first time, nba should not use Revenue Loss (BRI) To calculate salary cap.

2. Only 7 teams have cap space? No one has money to sign free agents? NBA should set up Pandemic MLE 8 million dollars for each team. Every team is required to use.

3. Salary cap at flat amount 100 million, Tax line at 130 million.

4. 20% Pay cut for all players and staff.

 

Something could be worked out to spread the downturn over a few years so it wouldnt be so crushing... but wasnt it the players union that was opposed to gradually implementing the increases from the windfall a few years back?

 

People have guaranteed contracts... i dont believe you can legally cut them back - regardless of circumstance... theyre guaranteed contracts..

 

Imo... Pretty much everybody is gonna be screwed - just a matter of to what extent...

I gotta believe most (if not all) teams will be jettisoning contracts - some to get under the tax while others will be trying to scrape by with the min payroll required to try to recoup losses theyre enduring now and in the future...

i gotta believe we're gonna see more moves league wide based on finances rather than trying to improve their roster...

LTS may be MVP in the coming season(s) - while playing for multiple teams...

 

I knew LTS was FTW

MVP lts

 

Edit nvm lol

 

Rockets front office already has discussed this internally and with other organizations and there is a strong belief there will be a deal made to prevent teams from having excessive tax obligations based on COVID19.

 

It would seem crazy not to. There's a reason why the NBA gives projections for years in advance, they want teams to adequately prepare and build salary sheets in an affordable manner. The tax is there only to be a deterrence for teams overspending - but whats the deterrence for here? Stay under the cap at all times (but not less than 90% cause that's also disincentivised) in case there is a global pandemic that cuts NBA revenue by hundreds of millions?

It would be stupid to punish teams for this. It's great that the players have guaranteed contracts, but the owners will want that taken out of the CBA if they don't also have protections in times like this

 

If there ain't no money coming in there ain't no money going out. The players can stomp their feet for all they want. Simple math problem.

 

Fun times.

 

Morey caused $5 mil and the rest due to COVID?

 

So, I guess this will be unfortunate for free agents?

 

Probably you will just see the owners bail out the players and keep the same cap for the next several years but leverage that to “steal” some revenue years later.