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Thread: Salary Cap for the 2009-10 announced...

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    Default Salary Cap for the 2009-10 announced...

    realgm.com

    http://www.realgm.com/src_wiretap_ar...09_10_season/#

    we knew it would decrease, now the exact figures are in.

    it did not hyperlink so here is the article from realgm.com

    The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.

    The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement.

    The new Salary Cap and tax level go into effect at 12:01 a.m. ET on Wednesday, July 8, when the league’s “moratorium period” ends and teams can begin signing free agents and making trades.

    The mid-level exception is $5.854 million for the 2009-10 season and the minimum team salary, which is set at 75% of the Salary Cap, is $43.275 million.
    Last edited by focused444; 07-07-2009 at 11:01 PM. Reason: quoted article

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    100 Miles from the B count55's Avatar
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    Default Re: Salary Cap for the 2009-10 announced...

    That would actually be about $0.5mm higher (tax threshold) than had been previously projected...(and that I'd used in the 2009 Cap Resource thread.)

    It's actually a little more breathing space than had been previously discussed, but I doubt that they're going to want to sidle up to the threshold.

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    Default Re: Salary Cap for the 2009-10 announced...

    Kind of what I figured . I think this gives us about 9 mil under the cap?
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    Default Re: Salary Cap for the 2009-10 announced...

    Alright, count55. The LT is $69.92m. Where does this leave us with (not cap space, but) tax space:

    - Before signing Tyler or AJ
    - After signing Tyler and AJ

    Is it about 9 million after Tyler and AJ sign?

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by PugdOut View Post
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    Kind of what I figured . I think this gives us about 9 mil under the cap?
    You mean under the luxury tax threshold?

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    Default Re: Salary Cap for the 2009-10 announced...

    If the 9 million is about right, that means we could sign Jack to a deal starting at about 4 million and still have MOST of our MLE?

    Of course, Josh is a factor, too.

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    White and Nerdy Anthem's Avatar
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    Default Re: Salary Cap for the 2009-10 announced...

    Stupid computer ate my comment.

    Short version: After we sign Tyler, Jack, and McRoberts, we'll probably have around 2mil left over to sign everybody we need, including Quis and AJ Price.

    We're pretty tight on cash.
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    100 Miles from the B count55's Avatar
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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by Hicks View Post
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    Alright, count55. The LT is $69.92m. Where does this leave us with (not cap space, but) tax space:

    - Before signing Tyler or AJ
    - After signing Tyler and AJ

    Is it about 9 million after Tyler and AJ sign?
    Roughing it out by stealing this from the Cap Resource thread:




    The "Remaining Money" cell for 2009-2010 shows about $5.9mm, but that includes signing Jack, so add $3.5 for Jack and $0.6 for the increased tax threshold (I figured $69.4 earlier), and that puts you at $10.0mm...roughly, assuming $1.8 for Tyler and $0.5 for Price.

    However, it's unlikely that they'll use all of that...figure they'll give themselves at least at $1.0mm cushion, and that leaves $9.0-(ish).

    As discussed in other threads, while this year is problematic, next year is the real problem...(This is also why I would seriously question the sensibility of offering Daniels a contract beyond one year.)

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    Default Re: Salary Cap for the 2009-10 announced...

    EDIT: Count hadn't posted yet when I started on this. His is more accurate, but mine is easier, I think.

    Let's try again. We're spending almost exactly $31mil on Danny, Mike, Jeff, Brandon, Diener, and Roy (aka our core).

    We're spending 26.75mil on Troy/TJ/Tinsley (aka the guys I'd trade for peanuts). That puts us at 57.8 for everybody together, which leaves about 11mil under the cap.

    With that 11mil, we have to sign Tyler and extend McBob and Jack. Tyler should be 2-ish, McBob 3.0-ish, and Jack 3.5-ish. That's 8.5, which means we have about 2.5 mil to spend on free agents and AJ Price.

    2.5 mil is not very much. Quis is probably looking for that much on his own. On the other hand, a good swingman and we're good to go... we really don't need help at any other position. I don't feel like we need to sign 15 players unless we're getting a great deal on somebody.

    Also, it's probably very wise to stay as far away as the tax line as possible, so we have some maneuverability in terms of trades... if we could take back 2mil more than we send out, we'd have a lot more trading partners.
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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by Anthem View Post
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    Let's try again. We're spending almost exactly $31mil on Danny, Mike, Jeff, Brandon, Diener, and Roy (aka our core).

    We're spending 26.75mil on Troy/TJ/Tinsley (aka the guys I'd trade for peanuts). That puts us at 57.8 for everybody together, which leaves about 11mil under the cap.

    With that 11mil, we have to sign Tyler and extend McBob and Jack. Tyler should be 2-ish, McBob 3.0-ish, and Jack 3.5-ish. That's 8.5, which means we have about 2.5 mil to spend on free agents and AJ Price.

    2.5 mil is not very much. Quis is probably looking for that much on his own. On the other hand, a good swingman and we're good to go... we really don't need help at any other position. I don't feel like we need to sign 15 players unless we're getting a great deal on somebody.

    Also, it's probably very wise to stay as far away as the tax line as possible, so we have some maneuverability in terms of trades... if we could take back 2mil more than we send out, we'd have a lot more trading partners.
    There is simply no way on the face of God's green earth that McBob is going to get 3.0. He made $0.8 this year, and he'll probably be at or around $1.0 to start.

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    Default Re: Salary Cap for the 2009-10 announced...

    We'll know soon enough, but I'm standing my ground that y'all are low-balling Jack at ~$3.5 mil.

    That said, if we don't make a significant trade this summer, I'm becoming more desirous of Jack playing for his $2.9 mil option this year, thus giving us time to trade one of Murph/Foster/Ford mid-season for an expiring. Then again, maybe some arbitration-driven fiscal relief from The Tinsley Chronicles will prove the sweetest form of resolution.

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by count55 View Post
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    There is simply no way on the face of God's green earth that McBob is going to get 3.0. He made $0.8 this year, and he'll probably be at or around $1.0 to start.
    BTW, what planet does Gortat live on?

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by DrFife View Post
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    We'll know soon enough, but I'm standing my ground that y'all are low-balling Jack at ~$3.5 mil.
    Bibby only got around 6 (18 over 3 years)... and from one of the few teams that would've been interested in Jack... really, where is the market for him?
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    Default Re: Salary Cap for the 2009-10 announced...

    McBob 3.0-ish
    I think thats a bit much for McBob. In fact I would give Roberts a 1 year offer and evaluate him after next year. Truth is no one I think would move in and snatch up McBob, they haven't even looked at Jack.

    We need to to get that 1 other "star" to play with Danny. Iam all for building a team but we need to free up some money. Tinsley Murphy and even Dunleavy are killing us financially. I still think their is someway to trade Murph, he is expensive eys but still can produce. Can you imagine Murph playing with Shaq and Lebron in Cleveland?
    You think they wouldnt rather have Murph then Ilgasakus(sp) ?
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    Default Re: Salary Cap for the 2009-10 announced...

    Here's dire news on the cap and tax for 2010.

    http://sports.espn.go.com/nba/news/story?id=4312837

    Updated: July 8, 2009, 2:34 AM ET
    2010 cap may limit signings

    By Marc Stein
    ESPN.com

    The NBA's ballyhooed free-agent summer of 2010 might have quietly taken another hit late Tuesday night.

    In a memo announcing next season's salary cap and luxury-tax threshold, sent out shortly before the league's annual July moratorium on signings and trades was lifted at 12:01 a.m. Wednesday, NBA teams also received tentative projections from the league warning that the cap is estimated to drop to somewhere between $50.4 million and $53.6 million for the 2010-11 season.

    The official league memorandum, obtained by ESPN.com, forecasts a dip in basketball-related income in the 2009-10 season of 2.5 percent to 5 percent, which threatens to take the 2010-11 cap down some $5 million to $8 million from last season's $58.7 million salary cap.

    NBA Rumor Central

    A significant drop for the luxury-tax threshold is also projected going into the summer of 2010. If basketball-related income drops by 2.5 percent in 2009-10, league officials are projecting a 2010-11 salary cap of $53.6 million and a luxury-tax line of $65 million. If BRI, as it is referred to in the NBA, decreases by five percent, teams would be looking at a $50.4 million salary cap and a luxury-tax line of $61.2 million in 2010-11.

    "Teams should be aware of this projected BRI decrease," reads the memo, "and plan accordingly."
    The new figures for 2009-10 just announced by the league have set the salary cap at $57.7 million per team -- down $1 million from $58.7 from 2008-09 -- and the luxury-tax threshold at $69.9 million.

    Commissioner David Stern actually warned during the NBA Finals of a BRI shortfall of "maybe as much as 10 percent" from last season to next season, but Tuesday's projections were sufficiently dire for teams such as the New York Knicks that have been planning for months to make a significant free-agent splash next summer.

    When Knicks president Donnie Walsh took the job in April 2008 -- before the global economic downturn that, as with most businesses, has hit the NBA so hard -- some teams around the league were projecting a 2010-11 cap ceiling in the $63 million range per team.

    So in the best-case scenario outlined by the league office Tuesday night, New York would have roughly $10 million less in spending money next summer than it originally planned for, although the memo did include a disclaimer stressing that these were "early" projections that could "change based on economic conditions and as more information on leaguewide business performance becomes available."

    In June, when asked by Stern to give a group of reporters some perspective on what a 10-percent drop (or thereabouts) in leaguewide revenues might do to free-agent spending in the 2010 offseason, NBA president Joel Litvin said he'd anticipate a "significant impact" in terms of slicing into the amount of spending money many teams once expected to have.

    The Knicks, for example, increasingly look as though they will be restricted to signing one maximum-salaried player that summer if the latest projections hold, which theoretically would only enhance the Cleveland Cavaliers' chances of retaining LeBron James, given the other holes in the Knicks' roster. New York's original plan to lure James was founded upon trying to sign James and a second marquee free agent in 2010.

    Teams have been bracing for reductions in the cap and luxury tax, but seeing such numbers circulate was still jarring for many team officials.

    "Real scary," said one Western Conference executive.
    Said another from the West: "The figures for [2009-10] are better than I expected. It is [the summer of 2010] that will be scary."

    So it also remains to be seen whether James, Miami's Dwyane Wade and Toronto's Chris Bosh -- all of whom are widely expected to pass on signing the contract extension each is eligible for this summer to ensure they'll have the opportunity to test free agency in 2010 -- will reconsider that stance on extensions because of the potential declines in cap space for external bidders, more teams straying into luxury-tax territory and the possibility that maximum salaries would be lower entering the 2010-11 season then than they are now.

    Tuesday's memo also listed the seven teams that must make luxury-tax payments to the league office by July 22 based on last season's payrolls. The dollar-for-dollax tax, assessed to any team with a payroll above the $71.15 million threshold that was in place in 2008-09, will result in the following invoices to be delivered to the respective teams before Friday's deadline:

    New York ($23,736,207), Dallas ($23,611,661), Cleveland ($13,707,010), Boston ($8,294,664), Los Angeles Lakers ($7,185,631), Portland ($5,899,356) and Phoenix ($4,918,136).

    The 23 teams that stayed below last season's tax threshold, meanwhile, will each receive just over $2.9 million, which is taken from the combined tax pool paid by the seven aforementioned teams. The memo notes that the remaining $20.4 million of undistributed cap funds is headed for the NBA's Revenue Assistance Plan, which distributes money to low-revenue teams.

    The $1 million drop in the cap from 2008-09 to next season marks just the second time since the NBA instituted a salary cap starting with the 1983-84 season that the figure has fallen. The fact that the luxury-tax line also appears to be moving steadily downward could prove to be no less damaging to free-agent spending in this and subsequent summers, thanks to the dollar-for-dollar penalty which so many teams are determined to avoid.

    Marc Stein is the senior NBA writer for ESPN.com.

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    Default Re: Salary Cap for the 2009-10 announced...

    Ya know, I might be looking at this all wrong but I think 3.5 might be the ceiling for Jack.

    When you combine the financial state of most NBA teams with the large number of guards taken in last months draft.... I just don't see that many teams wanting to add a solid bench player like Jack for more than 3M to start.

    The "solid bench player" comment wasn't ment to start yet another side arguement about Jack's ability, so please try to stay on topic.

    There will a lot of guys looking for more money than teams will be offering over the rest of the summer. There will a ton of players signing for the veteran minimum for one season. Just to stay in the league with the hopes of getting their payday next year.

    If the Pacers sign Price, which I would put at about 25%, then I would bet they let Jack walk & go into the season with Ford, Diener & Price.

    If they re-sign Jack, Price is gone.

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by Will Galen View Post
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    A significant drop for the luxury-tax threshold is also projected going into the summer of 2010. If basketball-related income drops by 2.5 percent in 2009-10, league officials are projecting a 2010-11 salary cap of $53.6 million and a luxury-tax line of $65 million. If BRI, as it is referred to in the NBA, decreases by five percent, teams would be looking at a $50.4 million salary cap and a luxury-tax line of $61.2 million in 2010-11.
    luxury tax line of between $61 and $65 million in 2010? holy cow.

    if this is true, pacers must really be having second thoughts about re-signing jack. our payroll in 2010 will be getting pretty close to $65m even without jack. now, is jarrett worth $3-4m per year, sure. but worth the huge luxury tax hit in 2010? yikes.

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by wintermute View Post
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    luxury tax line of between $61 and $65 million in 2010? holy cow.

    if this is true, pacers must really be having second thoughts about re-signing jack. our payroll in 2010 will be getting pretty close to $65m even without jack. now, is jarrett worth $3-4m per year, sure. but worth the huge luxury tax hit in 2010? yikes.
    Point taken. My attention is taken back to Tinsley, for his contract is the biggest link in our hand-cuffs. However, timing-wise, we probably will have to decide on Jack and others before the arbitration hearing is resolved.

    The other thought on my mind is that this news may delay our moves (and other teams' moves) to the mid-season trade deadline. We're playing low ball now, but surely we must be searching for another long-termer, another piece. If we can just get rid of one of the two-years-remaining contracts (Murphy/Dunleavy/Foster/Ford/Tinsley), life will be soooo much better!

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    Default Re: Salary Cap for the 2009-10 announced...

    You really have to think about it now. Jack signing could cost you for every dollar you go over the cap AND you wouldn't get the rebate, so to speak. Is JJ a luxury at this point with having TJ and Deiner. I still say you sign him because it's the equivalent of signing a back up Point Guard and Wing, so you get value along with the Hx of him playing a full season. At this point though you may have to really be conservative on what you intend to match.

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    Default Re: Salary Cap for the 2009-10 announced...

    Also, they aren't winning a championship next year, your main player is locked up long term in DG, why not take this year to fully develop the youngens? In two years you may be one of a very few team with money to spend and you've readied the other guys to make a run.

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    Default Re: Salary Cap for the 2009-10 announced...

    This is scary.

    Color me concerned.

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by DrFife View Post
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    We'll know soon enough, but I'm standing my ground that y'all are low-balling Jack at ~$3.5 mil.

    That said, if we don't make a significant trade this summer, I'm becoming more desirous of Jack playing for his $2.9 mil option this year, thus giving us time to trade one of Murph/Foster/Ford mid-season for an expiring. Then again, maybe some arbitration-driven fiscal relief from The Tinsley Chronicles will prove the sweetest form of resolution.
    $3.5mm is the starting salary for a 4/$16mm contract.

    Quote Originally Posted by DrFife View Post
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    BTW, what planet does Gortat live on?
    Gortat is a legitimate 7-footer who provides a physical, defensive, shot blocking presence. He was the primary backup on the EC Champion and played in the finals.

    McBob is a 6-10 'tweener who's currently projecting to be an energy type guy, and has only played 41 games in his two-year NBA career. Thirty three of them came in largely spot minutes for a 36-win team.

    If McBob went on the open market, the far and away most likely scenario is a minimum contract. The most wildly optimistic contract for him would be one similar to Diener's which started at around $1.5.

    Quote Originally Posted by Will Galen View Post
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    Here's dire news on the cap and tax for 2010.

    http://sports.espn.go.com/nba/news/story?id=4312837

    Updated: July 8, 2009, 2:34 AM ET
    2010 cap may limit signings

    By Marc Stein
    ESPN.com

    The NBA's ballyhooed free-agent summer of 2010 might have quietly taken another hit late Tuesday night.

    In a memo announcing next season's salary cap and luxury-tax threshold, sent out shortly before the league's annual July moratorium on signings and trades was lifted at 12:01 a.m. Wednesday, NBA teams also received tentative projections from the league warning that the cap is estimated to drop to somewhere between $50.4 million and $53.6 million for the 2010-11 season.

    The official league memorandum, obtained by ESPN.com, forecasts a dip in basketball-related income in the 2009-10 season of 2.5 percent to 5 percent, which threatens to take the 2010-11 cap down some $5 million to $8 million from last season's $58.7 million salary cap.

    NBA Rumor Central

    A significant drop for the luxury-tax threshold is also projected going into the summer of 2010. If basketball-related income drops by 2.5 percent in 2009-10, league officials are projecting a 2010-11 salary cap of $53.6 million and a luxury-tax line of $65 million. If BRI, as it is referred to in the NBA, decreases by five percent, teams would be looking at a $50.4 million salary cap and a luxury-tax line of $61.2 million in 2010-11.
    ...
    Hollinger wrote a column on this a few weeks back, and this is why I've consistently said that the Pacers probably couldn't avoid the tax next year.

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by count55 View Post
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    Hollinger wrote a column on this a few weeks back, and this is why I've consistently said that the Pacers probably couldn't avoid the tax next year.
    count, what in your mind are realistic options to get under the luxury tax threshold next year? I realize in any trade we have to take back roughly the same amount of salary, but do you think this makes players like Murphy, Foster, and TJ more expendable? Say we deal one (or more) of them during the season for a package of players where one of them has a small expiring contract. Could we avoid the tax?

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    Default Re: Salary Cap for the 2009-10 announced...

    Hitting the tax next year would be a big blow to the franchise's bottom line. I don't know what they're going to do about that. They'd be paying a few mil in taxes, AND losing around 3 mil from the league from other tax-payers, AND whatever they would/could have gotten from revenue assistance plan. This is really bad.

    Contracts around the league were already bad, but to watch them all keep growing while the cap is about to sink........

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    Default Re: Salary Cap for the 2009-10 announced...

    Quote Originally Posted by cdash View Post
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    count, what in your mind are realistic options to get under the luxury tax threshold next year? I realize in any trade we have to take back roughly the same amount of salary, but do you think this makes players like Murphy, Foster, and TJ more expendable? Say we deal one (or more) of them during the season for a package of players where one of them has a small expiring contract. Could we avoid the tax?
    To be honest, I cannot see any aggressive measures to avoid next year's tax that wouldn't do more harm than good. The only sure way I could think of, that absolutely would guarantee that we could clear cap space, would be to trade Danny for an expiring contract.

    We already have just over $60mm in guaranteed contracts for next year. Once Hansbrough signs, it will be very close to $62mm, and that's for just 9 players. Our first round pick will add another $1.5mm or so, and we're sitting at $63.5 with 10 players, one of which is Tinsley.

    A buyout for Droopy might save a few hundred k to a mil or 2 at most, but probably not a lot.

    If we curl up this summer, let Jack go, and sign a bunch of one-year vet mins, we'll still have to do it again next year, and the cost of our 1st rounder will go up (as we'll almost certainly be pretty bad on the court).

    I really don't think it's avoidable. My instinct would be to stand firm, continue the three-year plan, and sign players to prudent contracts (including the 4/$16 for Jack, and McBob for a couple of years), because the best solution to my long term fiscal health is to get back to being a contender.

    The problem with taking desperate measures to avoid next year's tax is that you're likely to get killed coming and going. You'll hurt your product on the floor, thereby setting back your rebuild and your standing with the fanbase, and you'll probably still end up paying the tax anyway.

    Of course, it's not my money, but if it was, I wouldn't let this prevent me from signing players (like Jack) that I considered a part of the long term future...provided that someone didn't offer stupid money.

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