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juadam09
07-09-2008, 12:02 AM
The NBA salary cap for the 2008-09 season will be $58.68 million, ESPN.com has learned.

The figure was arrived at after daylong consultations between lawyers for the NBA and the players' union.

The luxury tax threshold will be $71.15 million, and the value of the mid-level exception will be $5.585 million. Over-the-cap teams can only offer the mid-level exception to free agents.

The league's moratorium on trades and free-agent signings expires at midnight on Tuesday, and three teams -- the Golden State Warriors, Philadelphia 76ers and Los Angeles Clippers -- had been waiting on the exact cap figure to determine the size of the offers they can make to Elton Brand, who had become the No. 1 free-agent target of all three teams. ESPN.com's Marc Stein reported Tuesday evening that Brand has given a verbal commitment to the 76ers.


http://sports.espn.go.com/nba/news/story?id=3479183

Will Galen
07-09-2008, 12:47 AM
The luxury tax threshold of $71.15 million is good news. Right now we have 16 players under contract for $68,838,258, so that gives us $2,311,742 that we can work with in possible trades.

If we buy out Tinsley for $80% of his contract that would give us roughly $1.4m more. Ninety percent would be $723,333. So we will have $3 to $4.7m, if we buy him out.

CableKC
07-09-2008, 02:28 AM
The luxury tax threshold of $71.15 million is good news. Right now we have 16 players under contract for $68,838,258, so that gives us $2,311,742 that we can work with in possible trades.

If we buy out Tinsley for $80% of his contract that would give us roughly $1.4m more. Ninety percent would be $723,333. So we will have $3 to $4.7m, if we buy him out.

Is that how a buyout works?

I didn't think that if we bought him out for 16 mil that only a certain amount would count towards the Salarycap. I thought that regardless of the buyout price.....whatever the amount of money his salary is valued at will count towards the SalaryCap....not the buyout amount ( or a percentage thereof ).

That's why the Knicks are always over the cap....regardless of all the buyouts that they have orchestrated...the full Salary of the bought out player is still on the books.

Will Galen
07-09-2008, 03:11 AM
Is that how a buyout works?

I didn't think that if we bought him out for 16 mil that only a certain amount would count towards the Salarycap. I thought that regardless of the buyout price.....whatever the amount of money his salary is valued at will count towards the SalaryCap....not the buyout amount ( or a percentage thereof ).

That's why the Knicks are always over the cap....regardless of all the buyouts that they have orchestrated...the full Salary of the bought out player is still on the books.

A buyout works this way. Whatever a team buys a player out for is averaged out over the remaining years of the contract and that's what a team pays and that's what go's on their cap.

Tinsley is under contract for 3 years and $21.6. Say the pacers buy him out for $18m. Divide $18m by 3years and the Pacers would owe Tinsley $6m per year. And that amount would go on their cap.

count55
07-09-2008, 08:28 AM
Is that how a buyout works?

I didn't think that if we bought him out for 16 mil that only a certain amount would count towards the Salarycap. I thought that regardless of the buyout price.....whatever the amount of money his salary is valued at will count towards the SalaryCap....not the buyout amount ( or a percentage thereof ).

That's why the Knicks are always over the cap....regardless of all the buyouts that they have orchestrated...the full Salary of the bought out player is still on the books.

The buyout figure will become the new salary figure. The amount of the discount is pro-rated over the rest of the contract. For Jamaal, we owe him $6,750 of his $21,600 next year, so we'd get 31.25% of any discount we got in the buyout for that season. My calculations are slightly lower than Will's but they're in the same vicinity.


60. How do buy-outs affect a team's salary cap?

The agreed-upon buy-out amount (see question number 59) is included in the team salary instead of the salary called for in the contract. If the player had more than one season left on his contract, then the buy-out money is distributed among those seasons in proportion to the original salary. For example, say a player had three seasons remaining on his contract, with salaries of $10 million, $11 million and $12 million. The player and team agree to a buyout of $15 million. The $15 million is therefore charged to the team salary over the three seasons. Since the original contract had $33 million left to be paid, and $10 million is 30.3% of $33 million, 30.3% of the $15 million buyout, or $4.545 million, is included in the team salary in the first season following the buyout. Likewise, 33.33% of $15 million, or $5 million, is included in the team salary in the second season, and 36.36% of $15 million, or $5.455 million, is included in the team salary in the third season.

The distribution of the buy-out money is a matter of individual negotiation. Changing the number of years in which the money is paid does not change the number of years in which the team's team salary is charged. In the above example in which the player's contract is bought out with three seasons remaining, the buyout amount is always charged to the team salary over three seasons. It does not matter if the player is actually paid in a lump sum or over 20 years (a spread provision).

CableKC
07-09-2008, 11:31 AM
A buyout works this way. Whatever a team buys a player out for is averaged out over the remaining years of the contract and that's what a team pays and that's what go's on their cap.

Tinsley is under contract for 3 years and $21.6. Say the pacers buy him out for $18m. Divide $18m by 3years and the Pacers would owe Tinsley $6m per year. And that amount would go on their cap.


The buyout figure will become the new salary figure. The amount of the discount is pro-rated over the rest of the contract. For Jamaal, we owe him $6,750 of his $21,600 next year, so we'd get 31.25% of any discount we got in the buyout for that season. My calculations are slightly lower than Will's but they're in the same vicinity.
Thanks.....and now I know..........

QuickRelease
07-09-2008, 12:22 PM
A buyout works this way. Whatever a team buys a player out for is averaged out over the remaining years of the contract and that's what a team pays and that's what go's on their cap.

Tinsley is under contract for 3 years and $21.6. Say the pacers buy him out for $18m. Divide $18m by 3years and the Pacers would owe Tinsley $6m per year. And that amount would go on their cap.

I don't think the buyout is payed to the player quite that way. Looking at the amount they make in a season, you figure what percentage of the entire contract that equates to. If his contract is to be paid (percentage wise) on a schedule of 30% + 33% + 37% = 100% of the contract, then he would be paid 30% + 33% + 37% in paying 100% of the buyout amount. It isn't paid to them in an even distribution unless that's how they were receiving their original contract.

MyFavMartin
07-09-2008, 12:41 PM
...so that gives us $2,311,742 that we can work with in possible trades.

... So we will have $3 to $4.7m, if we buy him (Tinsley) out.
[/SIZE]

May be enough to sign Landry?

d_c
07-09-2008, 01:00 PM
May be enough to sign Landry?

Sure, you can sign him to that deal. And then Houston thanks you for doing that and matches the offer to keep him.

naptownmenace
07-09-2008, 01:00 PM
The luxury tax threshold of $71.15 million is good news. Right now we have 16 players under contract for $68,838,258, so that gives us $2,311,742 that we can work with in possible trades.

If we buy out Tinsley for $80% of his contract that would give us roughly $1.4m more. Ninety percent would be $723,333. So we will have $3 to $4.7m, if we buy him out.


But the Pacers are still over the cap and can take back no more than 125% plus $100,000 of the salary given out so that extra space below the tax threshold may not matter.

It does mean that they can sign a player with a portion of the MLE and not have to pay luxury tax.

MyFavMartin
07-09-2008, 01:02 PM
Sure, you can sign him to that deal. And then Houston thanks you for doing that and matches the offer to keep him.

That would put Houston over the luxury cap, right? Wouldn't they be happier to give those minutes to Scola, Hayes, and Dorsey?