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Sounds like no hard cap is coming

Posted on 2/6/23 at 9:46 am
Posted by TigerinATL
Member since Feb 2005
62446 posts
Posted on 2/6/23 at 9:46 am
quote:

Adrian Wojnarowski @wojespn 33m

In a perfect world, teams would be able to make deadline trades with full understanding of league's future economic structure, but sources say NBA has shown a willingness to step back from its initial push for an upper spending limit on payrolls to get an early labor deal done.


Seriously? There were teams that thought there was a chance it would happen?

First, there already is a hard cap with the revenue split. Players can't get more than 50% of BRI.

Second, and Pels related, I do think there's a chance the Luxury Tax changes some to be less punitive. Golden State is already pushing for it, and there are several small market teams like Memphis and the Pels that probably wish the luxury tax wasn't as much. You can probably throw OKC in there too, they're amassing a lot of talent that will all need to get paid at some point and they already had to break up a potential dynasty because it was getting too expensive. If you have big markets and small markets on the same side, it just might change.
Posted by Fun Bunch
New Orleans
Member since May 2008
132823 posts
Posted on 2/6/23 at 9:51 am to
No one thinks there is a chance of this happening.

Its just the league's boogeyman every year to try and get concessions.

It will never happen unless the league is on the verge of total collapse.
Posted by Soggymoss
Member since Aug 2018
17923 posts
Posted on 2/6/23 at 9:51 am to
I could definitely see the LT being changed to not be as punitive for teams that drafted their own players and built their team organically.

Something like being able to designate one drafted player where only 50% of his contract counts towards the LT

For instance say Zion’s first year cap hit is 30 million dollars, we could designate him as our exemption and be allowed to go 15 million above the tax line before we have any penalties.
This post was edited on 2/6/23 at 9:53 am
Posted by Fun Bunch
New Orleans
Member since May 2008
132823 posts
Posted on 2/6/23 at 9:51 am to
Team's should pay less in luxury tax for players they drafted and developed imo
Posted by blackandgolddude
Virginia Beach
Member since Apr 2012
3733 posts
Posted on 2/6/23 at 10:49 am to
If teams pay less (or nothing) in luxury tax for players they develop, then free agents have to cost extra towards luxury tax. What's to stop a team like GS, where they pay no luxury tax for Curry, Thompson, Green, and Poole, and then are able to load up on multiple FA stars while making less of a dent in the luxury tax?
Posted by shel311
McKinney, Texas
Member since Aug 2004
113145 posts
Posted on 2/6/23 at 10:56 am to
quote:

Team's should pay less in luxury tax for players they drafted and developed imo

Yep.

There's so many ways to do it. But add up all the salaries for the guys you drafted and have been with you the entire team, and either no tax or less tax on those guys should be the norm IMO.

I'm not a fan of the system where Golden St gets all those penalties when the bulk of their salary is tied up in 3 guys they drafted, just not a fan of that.
Posted by Soggymoss
Member since Aug 2018
17923 posts
Posted on 2/6/23 at 11:00 am to
quote:

If teams pay less (or nothing) in luxury tax for players they develop, then free agents have to cost extra towards luxury tax. What's to stop a team like GS, where they pay no luxury tax for Curry, Thompson, Green, and Poole, and then are able to load up on multiple FA stars while making less of a dent in the luxury tax?

This wouldn’t be possible because you still have the salary cap line that cannot be exceeded without exemptions.
Posted by GOP_Tiger
Baton Rouge
Member since Jan 2005
21268 posts
Posted on 2/6/23 at 11:06 am to
quote:

there are several small market teams like Memphis and the Pels that probably wish the luxury tax wasn't as much

Gayle made an extra $17 million last off-season from tax collection. You think that she wishes it were less? The tax is part of what helps small-market teams stay financially viable.

If you think that smaller markets want the tax to be less, then I think that you have it backwards.
Posted by TigerinATL
Member since Feb 2005
62446 posts
Posted on 2/6/23 at 11:14 am to
quote:

If you think that smaller markets want the tax to be less, then I think that you have it backwards.


I think there are multiple small markets that are on the verge of becoming tax payers that will have the same choice to make that the Westbrook/KD/Harden Thunder had to make.

I also think that teams will be getting another $30-$50 million a year in new money with the next TV deal and a one time windfall of $150 million or so when 2 new expansion teams get added to the league.

So with the upcoming new sources of revenue to offset some degree of lost tax revenue, I'd say yes, there are some small market teams that would like the opportunity to build a contender rather than have the tax make them blow it up like the Thunder had to do. Not all of them, but possibly enough to get the 20 votes needed to pass.
Posted by GOP_Tiger
Baton Rouge
Member since Jan 2005
21268 posts
Posted on 2/6/23 at 1:44 pm to
I think that a lot of teams would like tax relief for keeping their own players. It shouldn't just be for players that you've drafted, but should also include players who've been with the team for X number of seasons.

Basically, what the tax needs is something like how Bird works with the cap. That's certainly what the Pels need.

And it's good for the league. The NBA wants to encourage continuity.
Posted by TigerinATL
Member since Feb 2005
62446 posts
Posted on 2/6/23 at 1:52 pm to
quote:

what the tax needs is something like how Bird works with the cap.


They already have similar rules for veteran minimums, so that could be an easier to sell mechanism. For tax purposes vet minimum contracts count as a 2nd year minimum. So a player 10 year vet would be making $2.9 million but count as 1.6 million against the tax.

I'm not sure how you handle the middle class Bird contracts, but for Max contracts you could have them count as just a 25% Max for tax purposes.
This post was edited on 2/6/23 at 1:52 pm
Posted by armsdealer
Member since Feb 2016
12348 posts
Posted on 2/6/23 at 5:47 pm to
The escalation of the repeater tax is too harsh. The best players on are on 4-5 year contracts but if you are in the tax 3 out of 4 years you have to pay the repeater penalty or break up your team. If you have 2-3 good drafts there is no way to keep a team together.
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