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

Random thought trying to think of a solution that would work fairly league wide and boost fan interest.
Each team gets to amnesty on 3 contracts. This clears room for all teams to be buyers and protects the players going forward. While lowering the cap.

-The original team is obligated to the player for 75% (The difference between new and original contract) if the player resigns in the league or 50% if he doesn’t.
-The players must sign for at least 50% or more of their original contract. (75% to the player)
-If the player is picked up by another team the old team pays they player’s difference up to 75% of the original contract.
-If the player is not signed then the team pays 1/2 the contract. (The player it’s working in the league; 1/2 for nothing)

-makes the player sign a new contract
- Helps keeps super teams from forming on the cheap.

 

29 teams want to smooth the reduction over the course of several years, yalls boy Fertitta wants a plan that allows him to amnesty a player with no penalty. Bye Russ. Lulz.

 

No guarantees is already in the CBA.

The Uniform Player Contract does not have guarantees in it. The big one is "Lack of Skill." Teams are allowed to cut players at will (just like NFL), for the all-encompassing reason that they are no longer worth it...and they get zero compensation (just like NFL).

What is different is that free agent negotiations in the NBA almost always favor the player (vs NFL), as they almost always get the guarantee for "Lack of Skill" placed into their contract.

All guarantees are individually negotiated into the contract at the time of signing.

 

OUr boy Fertitta is doing the player a favor if he gives the player amnesty. He cares about his employee. He might even throw in a free meal at Joe's Crack Shaft or Bubba Hump

 

wtf I did not know that

 

Are we sure the contracts don't have some sort of Force Majeure clause that might apply to this situation?

 

Contracts of any sort can be modified with the consent of the parties involved. Now, that's probably an incredibly complicated, nigh impossible, thing to do with sports contracts. I'm sure the union would have to support taking a paycut. And then every single player would have to agree to it and have it written into their individual contracts. A few hold-outs, and the whole thing would fall apart.

Now, I wonder what a force majeure clause in the sports world looks like, because I would think that this situation absolutely activates it for the owners. It'd still be messy as hell to invoke, though.

 

Good, the salaries in the NBA and tv deal was getting out of control.

 

My profits projection For next season
Tilman has 4 types of expenses
Players salary 115 million - after pay cut or trade
Staff and non staff salary 20 million - includes Morey and MDA
Players and staff benefits 20 million - 18-19 season 27 million
Business operating exp - 5 million - 18-19 season 16 million

total revenues 170 million
Total expenses 160 million

Profit 10 million - pay for loan interest expenses

The max amounts for players Salary is 115 million. Are the fans going to pay the Loan interest for Tilman?
Tilman leads the nba in loan amount?

 

Carl, your thread title is misleading. The article says the salary cap could decline by as much as $30 million. It doesn't say that it will.

I thought that was worth pointing out.

;-)

 

CH misleading title? Never.

 

Here comes another Amnesty

 

The tax is just redistributed to the teams under line. If every team is above the line there isn't going to be luxury tax.

 

So let me get this right - back in 2016, the league asked the players to agree to a "smoothing" of the cap jump. The players declined, with a result that there was a huge spike in the cap and Golden State got the room to sign Durant, which wrecked the league for a couple of years. And the Rockets missed out on at least one title. Now the players are coming to the league requesting an agreement to smooth the cap effect when it is going the other direction?

 

Idk about that... my understanding is players cant renegotiate their existing contracts - even if both sides are willing... they can be bought out... both sides can mutually agree to part ways... but my understanding is contracts cannot be reworked - which is why guys have to play out their existing contract before their new contract can kick in...
O/w superstars could take paycuts to add players... or take a 'paycut' and get paid under the table to dodge luxury tax...

I've never heard of a Force Majeure clause in sports...

Edit: I recollect Ty Lawson and Morey were able to make the last year of his contract nonguaranteed - whereas it had been fully guaranteed (which I'd never seen that happen before...) ... but never heard of the dollar amount on a contract being altered once signed...

 

Everyone’s salary would be adjusted. So what ever the max every contract is would be adjusted to the new cap

 

I think it’s guaranteed to the max of the specific salary cap.

 

Fertitta on pay cuts:

Shut up and dribble.

 

Max salaries I understand are at a % to the cap i believe... and there are the scrub contracts which are only partially guaranteed if at all... but the other what 60%? 70%? or whatever are straight up X dollars for y years... so maybe a little play with max contracts... but the scrub contracts are cheap lower tier contracts which dont provide a lot of room for downgrading... but the majority are locked in guaranteed contracts...

Thats always been my complaint with NBA contracts - all the decent size contracts are fully guaranteed so it lessens the incentive for some once they sign that fat contract... If you sign a 100M contract - yer collecting 100M - as long as you dont give em grounds to void the contract... no matter how out of shape or bad you may play...

and unfortunately the NFL is trending more towards this format as well...

 

Title: Salary Cap/Luxury Tax to decline by $30 million!

Tweet: Salary Cap/Luxury Tax could decline by as much as $30 million.

Do better, Carl.