What do you think Morey will do to get out of the LUXURY

If we re-sign Artest next summer then we are going to end up above the LT threshold every year anyways. Les should just eat the tax this season and stand pat........let this roster bring home the wins.

 

Correct me if I am wrong. I thought we have been and was sure to be over the salary cap even for last year roster. We only try to avoid luxury tax.

 

unless T takes a pay cut on his turn

 

"his turn" doesn't come up for another couple years

 

Why are we so concerned to save the owner money?

... just wonderin' ...

 

How does the luxury tax work?

a) How does it affect us - What happens if we dont lower it

b) Until when do we have to lower it

c) Who in the NBA exceeds the luxury tax?

Anyhow, if I had to get rid of a couple of contracts I would go with. Chuck Hayes (Can't shoot and his position is packed) and also Luther Head.

Do we really have to keep DJ strawberry? I skimmed through the posts and I didnt see anyone say anything about him

 

He can't waive them because their salary stays on the books. Trade for less salary is the onle way to go.

 

This was something I asked Jason Friedman a while ago when I was trying to get a better understanding of the business side of the game. Same questions as you basically:

Not sure but I believe Dallas and NY Knicks are def over. I think Boston went over last year.

As far as who you'd be fine with trading (you mentioned Head and Hayes), who will find value in those two to add them to their own salary cap.

 

head, hayes, steve are all making a significant amount of money to play 3rd string. any of those would be a good idea to move.

 

This is what I got for luxury tax on google.

"Teams whose payroll exceeds a predetermined tax level pay one dollar for each dollar their payroll (with a few exceptions, see below) exceeds the tax level The tax level is determined prior to the season, and is computed by taking 61% of projected BRI, subtracting projected benefits ($112 million in 2005-06), and adjusting for whether the previous season's BRI was above or below projections. They then divide by the number of teams (except expansion teams in their first two seasons) to arrive at the tax level. "

BRI stands for Basketball Related Income (BRI), essentially includes any income received by the NBA, NBA Properties or NBA Media Ventures.

Just so you know the luxury tax for this 71.150 millions.

this is the link about salary cap

http://members.cox.net/lmcoon/salarycap.htm#16

 

Head,Hayes, and Francis. That like almost 7m. Scola/Landry and a cheap rookie replaces Hayes. Barry,Brooks,and Battier sqeezes Head and Francis.

 

Because the owner is less likely to make moves (ie, sign guys for the MLE, give Artest a decent contract), that will put him over the lux tax. We got Scola because the Spurs didn't want to pay lux tax.

 

You guys are missing out on WHY the luxury tax is a big deal. Not only do you have to pay a dollar for dollar tax on the amount that you are over, but you also do not get to participate in the league's revenue share, which can be substantial.

 

I hope he gives Head to someone for a draft pick.

 

thats pretty crazy considering we only have one rookie this year (maarty is playing in europe and donte is gone)


we'll shed cap closer to the trade deadline i see the most likely candidates being head and/or francis (depending on how he comes back from injury)

of course this mean strawberry and harris are cut after camp.

i still see hayes as valuable for his savvy defense and his knack for rebounding. he is still our best defensive power foward.

 

Yeah that's the key point about why owners don't want to pay the tax. You miss out on what essentially is free money that teams over the tax pay and divide up among the non tax paying team. To go even a dollar over the luxury tax and miss out on free cash is not something owners want a part of.

 

We need to resign Mutombo and NBA need to find the way to make this happen without affecting the salary cap. I know about the vet min. etc. but Mutombo is not a Vet anymore he is in a separate category he is so old and so valuable to the NBA image that he need his own category. Maybe the NBA can make AARP pay his salary with affecting the Rockets cap.

 

You're exactly right. Let me offer an example for those that might still not understand fully.

If 10 teams are over the tax line, however much those 10 teams spend over, that gets divided amongst the 20 teams that are under. So if the 10 teams go over by a grand total of $40 million, then the remaining 20 teams each get $2 million a piece ($40 million divided by 20 teams). So if an owner even goes one dollar over the line, he's not just paying that extra dollar in tax, he's missing out on that $2 million giveaway.

 

I don't think this is quite right. There isn't a tax to be paid when the salary cap is exceeded only when the luxury tax cap is exceeded. When a team goes over the salary cap (58.68 million for this season), that team is not allowed to sign any free agents unless exceptions are used (MLE, LLE, minimum salary, rookie salary, etc.). Therefore, teams are restricted when it comes to improving their roster.

The luxury tax (71.15 million for this season) is something different and is higher than the salary cap. When teams exceed this amount the have to pay a dollar for every dollar that the team goes over this cap. Regardless of whether or not Bird rights or exceptions were used, all the players' salaries count as team salary and goes against the luxury cap.

But he is right when he said the Bird rights were implemented to ensure teams have an advantage when resigning their own free agents.

 

i do not mind going to LT this season. As the tmac /yao contract will soon come down. "hopefully". They will be at 30 when their contract are up, they cant expect to sign for max money for 7 years again?