1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Next season luxury tax: 76ers, Celtics, Nets, Clippers, GSW

Discussion in 'NBA Dish' started by BigBum, Apr 23, 2020.

  1. BigBum

    BigBum Member

    Joined:
    Jun 19, 2018
    Messages:
    3,860
    Likes Received:
    1,346
    NBA projected revenues is 8 billion dollars. Due to projected revenues losses of 750 million, luxury tax mark for next season is likely to be 120 million, according to my CFO.

    2020-2021 salary - current contracts

    76ers 147 million for 10 players
    Is Brand able to dump 34 years old Horford salary for nothing? How to complete for championships? Who would take that contract?

    Celtics 143 million
    Is Ainge able to dump Hayward salary for nothing? How to compete for championships?

    Nets 141 million without Joe Harris
    Will they offer Joe Harris 4 years 40 million dollars?

    GSW 148 million
    Will they dump Wiggins salary and future Picks to Knicks for smaller contracts?

    Clippers
    Will Clippers offer free agents Harrell, Morris and Jackson at 45 million market value per year?

    This is a good news for small markets - luxury tax profits. Small markets really really need profits.
     
    #1 BigBum, Apr 23, 2020
    Last edited: Apr 23, 2020
  2. Fefo

    Fefo Member

    Joined:
    Mar 4, 2009
    Messages:
    709
    Likes Received:
    344
    i think the nba may offer teams a way to deal with the luxury tax next year. Not sure if they will end up paying that much on tax, or force them to get rid of players. Maybe even allow them to cut 1 player ( paying their full contract, but so it dosent go against their salary cap).
    I guess time will tell.
     
  3. francis 4 prez

    francis 4 prez Contributing Member

    Joined:
    Aug 15, 2001
    Messages:
    22,025
    Likes Received:
    4,552
    on the one hand, it feels like they're going to have to make some sort of "fake" cap/luxury tax/hard cap so teams don't have to just cut/trade players for nothing. if not, existing contracts will probably suck up most of the cap room before free agency begins (basically the opposite of the cap spike offseason)? if you keep a fake higher cap, players would get more than their 50%, possibly even beyond the escrow system.

    will owners go for that? i'm guessing not. will any player on an existing contract agree to give any money back to essentially even the playing field for free agents? i'm guessing not.

    if you calculate a real cap but but just pretend existing contracts are only worth something like 80-85% for cap/LT purposes, then you seemingly have a situation where teams are paying more than shows up on the cap and teams with richer owners will be more willing to keep existing contracts and add to them (since the 75-85% contracts won't knock them way into the LT). cheaper teams might stay below the cap. maybe make the contracts 80% for cap but 90% for LT or something staggered like that.

    will be interesting if the actual cap changes by more than the 10% mentioned and it's something like 20% lower.
     
  4. heypartner

    heypartner Contributing Member

    Joined:
    Oct 27, 1999
    Messages:
    62,577
    Likes Received:
    56,318
    The Union has already agreed to pay cuts. They start in May.

    I'm guessing a huge (yet temporary) drop in BRI will be accompanied with some type of recalculation of what constitutes the Luxury Tax Line and the Salary Cap, as some kind of compromise with the Union for agreeing to pay cuts on existing contracts. That is to say, they might have the leverage to compromise on not drastically (yet temporarily) dropping all the exceptions, which would only serve to screw one or two classes of free agents.
     
  5. francis 4 prez

    francis 4 prez Contributing Member

    Joined:
    Aug 15, 2001
    Messages:
    22,025
    Likes Received:
    4,552
    but weren't those pay cuts for this year based on some rule that basically says if the games aren't played then the league can invoke such and such rule to reduce pay and then maybe the players get it back if the season happens (unlikely at least for the regular season)? i wonder if they actually play the games next year and revenue just drops because of reduced attendance (I assume the larger TV money stays), will the spirit of compromise remain so high among players who already got paid (since there should be more non-FA's than FA's). maybe in such trying times, a show of solidarity will become important among the union ranks and they will agree to reduced pay as opposed to creating have's and have not's, but i assume it's far from certain.

    i guess we're probably far enough from the cap spike season that the people becoming FA's are probably a good mix from people who benefited from the cap spike and some who didn't. maybe the players don't even care about all the guys who got paid too much that season, but i would if i was a player and i would be doubly mad if i somehow had to take a paycut this year.
     
  6. BigBum

    BigBum Member

    Joined:
    Jun 19, 2018
    Messages:
    3,860
    Likes Received:
    1,346
    10% revenues losses = players 5% pay cut.

    Gordon Hayward is almost certain to opt out. Celtics have no problem.
    Bucks need to dump Bledsoe and 76ers need to dump Simmons. Nobody wants Harris contract and Horford contract unless dealing 4 Firsts.

    I think Nets can easily win the east. They have no problem to pay 100 million tax next year.
     
    #6 BigBum, Apr 24, 2020
    Last edited: Apr 24, 2020
  7. Rockets FTW

    Rockets FTW Member

    Joined:
    Jan 31, 2010
    Messages:
    4,571
    Likes Received:
    2,001
    IF healthy.
     
  8. napalm06

    napalm06 Huge Flopping Fan

    Joined:
    Sep 30, 2008
    Messages:
    26,392
    Likes Received:
    29,573
    Are we just going to ignore that Big Bum has a CFO?
     
    francis 4 prez likes this.
  9. BigBum

    BigBum Member

    Joined:
    Jun 19, 2018
    Messages:
    3,860
    Likes Received:
    1,346
    According to some people I talked to today, next year salary cap is not based on CBA 43% rules. Salary cap will be the same as this year regardless of revenues losses.
    Pistons make it clearly that they are happy to help the teams like 76ers and GSW to dump salary.

    Snell for Al horford and 76ers 2 future Firsts

    Snell for Wiggins and GSW 2 future Firsts.
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now