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Could someone explain the Cavs cap situation
Posted on 7/5/15 at 8:27 pm
Posted on 7/5/15 at 8:27 pm
I'm relatively new to the NBA and don't really understand how the cap works. I understand that the cap is supposed to increase a lot the next few years, but it doesn't make sense how they can pay for 3 max contracts (plus another max if the get Joe Johnson), plus the other signings they made this offseason. The cap is $67 million this year and just 3 max contracts exceeds that. Just curious how this works, thanks.
5
Posted on 7/5/15 at 8:32 pm to DrewGOATBrees
Technically, the NBA has a soft cap. If you have an owner that doesn't mind burning money, they can pay the cap penalties and go over.
Posted on 7/5/15 at 8:33 pm to DrewGOATBrees
If you go over th3 soft cap, you just pay a butt ton of luxury tax, and it gets worse every year. But with the cap going up next year, it won't be as bad of a hit.
Posted on 7/5/15 at 8:33 pm to Jcorye1
No idea how they can take on Joe at 24 mil even if they throw in Varajeos 9.6 with Haywoods 10.5. Especially factoring in Thompson at 15-16 per
Posted on 7/5/15 at 8:34 pm to Mr. Wayne
Oh and supposedly going after David West.
Posted on 7/5/15 at 8:36 pm to Mr. Wayne
The key is signing all of your free agents before re-signing your own guys.
Posted on 7/5/15 at 8:37 pm to Mr. Wayne
I'm assuming the David west stuff goes away if they pull off the Johnson trade just based on the timing of all these reports. Were they potentially offering west the MLE or vet min?
Posted on 7/5/15 at 8:45 pm to DrewGOATBrees
Birds rights come into play
Posted on 7/5/15 at 8:47 pm to RTR America
The inner accountant in me wants to just dive into the CBA and see how it works.
The outer accountant in me just wants me to get my CPA after a year or so of dicking around.
The outer accountant in me just wants me to get my CPA after a year or so of dicking around.
Posted on 7/5/15 at 8:52 pm to Jcorye1
Seems shitty. So you can essentially just go over the cap however much you want and stack the team for a year and go all in for the championship if you're willing to pay that as an owner? Seems pretty enticing with the cap rising so much over the next few years.
Posted on 7/5/15 at 8:54 pm to DrewGOATBrees
quote:
Seems shitty. So you can essentially just go over the cap however much you want and stack the team for a year and go all in for the championship if you're willing to pay that as an owner? Seems pretty enticing with the cap rising so much over the next few years.
Until you realize that, with escalators, your say 15 million going to Iman Shumpert becomes 35 mill or 40 mill in a couple of years assuming you don't get back below.
Posted on 7/5/15 at 8:59 pm to Jcorye1
Basically what happened to the Heat. They were about to have to pay Mario Chalmers a shite load of money.
Posted on 7/5/15 at 9:03 pm to DrewGOATBrees
You have to use manipulations, too. They can't just sign every outside player they want if they are over the cap. A lot of it has to be done through trades.
Basically, Bird Rights, trades, and exceptions make going over the cap possible.
Basically, Bird Rights, trades, and exceptions make going over the cap possible.
Posted on 7/5/15 at 9:03 pm to Mr. Wayne
I explained it in the free agency thread
When you trade for players the salaries of the player you are trading for can go up to 125% of the players you trade.
Verajo and Haywood's contracts are around 20 mill. 125% of that is 25 mill. They can trade those 2 straight up for JJ
AFter saying all of that... Nets reporters have already reported its just "talking" and they would be surprised if anything came from it.
I think the Cavs are just throwing it out there to force other teams to stop frickin around and take Haywood off their hands
And the NBA allows you to sign your own players and go over the cap. All the players the Cavs have signed were on the team last year. They are just resigning them. The only way try can add players is through trades. They knew this last year which is why they acquired Haywood bc he is worth 10 mill non guaranteed this season which makes him valuable trade bait
When you trade for players the salaries of the player you are trading for can go up to 125% of the players you trade.
Verajo and Haywood's contracts are around 20 mill. 125% of that is 25 mill. They can trade those 2 straight up for JJ
AFter saying all of that... Nets reporters have already reported its just "talking" and they would be surprised if anything came from it.
I think the Cavs are just throwing it out there to force other teams to stop frickin around and take Haywood off their hands
And the NBA allows you to sign your own players and go over the cap. All the players the Cavs have signed were on the team last year. They are just resigning them. The only way try can add players is through trades. They knew this last year which is why they acquired Haywood bc he is worth 10 mill non guaranteed this season which makes him valuable trade bait
This post was edited on 7/5/15 at 9:05 pm
Posted on 7/5/15 at 9:03 pm to DrewGOATBrees
If I understand it right there's a soft cap and a hard cap. Of course my knowledge on the subject comes from the 2k video games so TIFWIW.
You can only go over the soft cap if certain things apply. This is where things like bird rights, trade exceptions and mid level exceptions come into play. Bird rights are basically if a player has played for your team for a certain amount of years you can sign him even if it puts you over the soft cap. If you trade with another team, it can put you over the soft cap but not the hard cap.
If you're over the soft cap, you have to pay the luxury tax that was mentioned earlier in this thread
You can only go over the soft cap if certain things apply. This is where things like bird rights, trade exceptions and mid level exceptions come into play. Bird rights are basically if a player has played for your team for a certain amount of years you can sign him even if it puts you over the soft cap. If you trade with another team, it can put you over the soft cap but not the hard cap.
If you're over the soft cap, you have to pay the luxury tax that was mentioned earlier in this thread
This post was edited on 7/5/15 at 9:05 pm
Posted on 7/5/15 at 9:06 pm to Weagle25
Only have to pay the luxury tax if you go over this tax threshold.
Cap is like 69 mill. Tax threshold is around 80 i believe
Cap is like 69 mill. Tax threshold is around 80 i believe
Posted on 7/5/15 at 9:29 pm to SwaggerCopter
quote:Well this isn't true at all. The key can just as easily be re-signing your own free agents to smaller deals than their current cap holds, then signing free agents.
The key is signing all of your free agents before re-signing your own guys.
This post was edited on 7/5/15 at 9:33 pm
Posted on 7/5/15 at 9:31 pm to Weagle25
quote:There's only a hard cap in 2k.
If I understand it right there's a soft cap and a hard cap. Of course my knowledge on the subject comes from the 2k video games so TIFWIW.
In real life, there is no hard cap, just massive tax penalties.
Posted on 7/5/15 at 9:41 pm to DrewGOATBrees
No. A team can only go over the cap to re-sign their own players.
So a team that doesn't have cap space cannot just go sign a max player in free agency and pay the luxury tax. That's not how it works.
The Cavs can go over the cap to sign Love and LeBron since they are their own players.
For example, let's say the cap is set at 70 million and the tax is 90 million. A team that was at 70 million the year before re-signs some of their players this summer and now has a payroll of 80 million. They don't have to pay the tax but they are over the cap.
Imagine a team was over the cap at 80 million, and one of their players broke out to become a star. His contract is up, and he's commanding 15 million more than you paid him the year before. You are allowed to re-sign him, but that will bring your payroll to 95 million, bringing you 5 million over the luxury tax line.
So a team that doesn't have cap space cannot just go sign a max player in free agency and pay the luxury tax. That's not how it works.
The Cavs can go over the cap to sign Love and LeBron since they are their own players.
For example, let's say the cap is set at 70 million and the tax is 90 million. A team that was at 70 million the year before re-signs some of their players this summer and now has a payroll of 80 million. They don't have to pay the tax but they are over the cap.
Imagine a team was over the cap at 80 million, and one of their players broke out to become a star. His contract is up, and he's commanding 15 million more than you paid him the year before. You are allowed to re-sign him, but that will bring your payroll to 95 million, bringing you 5 million over the luxury tax line.
This post was edited on 7/5/15 at 9:48 pm
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