HoopsHype Salary Cap rumors

December 13, 2013 Updates

If Irving is voted an All-Star starter this season and next, he’ll be eligible to receive 30 percent of the salary cap in his next contract rather than the standard 25 percent. It’s what is known as the “Derrick Rose exception” in the new collective bargaining agreement, and it could mean the difference of an additional $15 million or so during the life of a max contract. In order to qualify for the Rose exception, players within their first four years in the league must either be named to an All-NBA team twice, win the league’s MVP award once or twice be voted a starter in the All-Star game. Akron Beacon Journal

August 29, 2013 Updates

The Philadelphia 76ers are an odd case. While they have just $40 million in contracts on their books, they are still technically over the $58.7 million salary cap. The combination of unsigned first-round draft picks Nerlens Noel and Michael Carter-Williams, the $5.1 million TPE for Jrue Holiday, the cap holds for free agents Royal Ivey, Damien Wilkins and Charles Jenkins, and the Sixers’ MLE and BAE all total to $19.4 million — putting the Sixers’ cap number at $59.4 million. It is inevitable that Philadelphia will end up under the cap, assuming Ivey, Wilkins or Jenkins signs with another NBA team. In the meantime, the Sixers recently used part of the Holiday TPE to acquire Tony Wroten Jr. from the Memphis Grizzlies — not cap room. HoopsWorld

July 31, 2013 Updates
July 18, 2013 Updates

Brandan Wright will sign a new contract with the Mavs probably by this weekend, Mark Cuban said. Because Wright is the Mavs’ free agent, they are allowed to go over the salary cap to sign him. “You have to do all the stuff, and you have to do certain things to optimize your cap room,” Cuban said. “So you have to go through those different steps.” Fort Worth Star-Telegram

July 10, 2013 Updates
June 16, 2013 Updates

Automatically retired players do not come off the salary cap, so it's up to the team and player to determine a settlement that will count against the cap. The Celtics had that with Rasheed Wallace, who retired two years before his contract expired. It would be the same situation with Garnett should he retire with two years left on his deal. Also, there is the misconception that the Celtics Would have the option to buy out Pierce's contract and then re-sign him to a deal reduced. When a team waives a player, as the Celtics would have to do with Pierce, it is ineligible to sign him for one year. Boston Globe

June 2, 2013 Updates

Zach Lowe: Can confirm @Marc Stein tweet on projected $58.5M cap for next season. Hearing word/$58.5M # started dribbling out to teams Fri-Sat. Twitter @ZachLowe_NBA

May 12, 2013 Updates

The effect of retired players on the salary cap - which could eats into play with Kevin Garnett - is not uniform in the new collective bargaining agreement, meaning how it impacts a team's cap is undetermined until a buyout or settlement is negotiated. The Celtics had a situation like with Rasheed Wallace, who retired with two years remaining on his contract. He and the Celtics agreed to a buyout so the final two years of his contract would not impact the salary cap. The buyout amount, however it, does affect the cap. Boston Globe

April 28, 2013 Updates

While the Celtics' could wind down season in disappointing fashion perhaps because of injuries and age creeping into the once-energetic bodies of Kevin Garnett and Paul Pierce, there will be intrigue this summer. The organization must choose whether to reload for one more championship run or cut ties with its most popular player. Pierce has a team option on his contract for 2013-14 at $ 15.3 million, with a $ 5 million buyout before June 30. Meanwhile, Chris Wilcox's minimum salary is the only guaranteed money that will come off the books next season, ensuring the Celtics will again be a luxury-tax team. Even jettisoning Pierce's contract would not offer financial flexibility because they would still be over the salary cap. Boston Globe

April 14, 2013 Updates

The Lakers are allowed to cut one of four players on their roster without paying luxury taxes on his salary. Bryant will make $30.5 million next season. The other eligible players are Pau Gasol ($19.3 million next season), Metta World Peace ($7.7 million) and Steve Blake ($4 million). Players can be amnestied only if they were on the roster dating back to July 2011. If the Lakers waived Bryant, they would save up to $80 million in luxury taxes but would still have to pay his salary. It's unlikely they would amnesty him because of the relatively short timetable for his return. If they did, teams under the salary cap this summer would submit undisclosed bids to the NBA office to claim Bryant. He would then belong to the team that bid the highest. The Lakers could then re-sign Bryant in July 2014, after his current contract expired. Los Angeles Times

March 17, 2013 Updates
February 21, 2013 Updates

Overall perspective on trade deadline activity: contrary to the pablum put out by the league -- and regurgitated by some in the media -- the new CBA has put a drag on making moves for several reasons. First: fear of super luxury tax has almost every team, including the big market ones, reluctant to do anything that is going to put them in jeopardy of paying it. Big market teams already are kicking in money to smaller markets in the revenue sharing system, so they're apparently loathe to add more to the coffers of their less-wealthy opponents. Second: Because of that fear, first-round picks have become far more valuable and less likely to be used to sweeten deals because they offer the potential of acquiring a talented player at a below-market price. Sulia

February 12, 2013 Updates

“It takes two teams to trade,” Cuban said Monday evening. “There’s a lot of deals we would make [laughs], but nobody seems willing to do what we want to do. You never know, but nothing imminent. The bank’s still open.” The bank is still open, but Cuban will be very judicious when determining whether a deal is worth sacrificing space under the salary cap this summer. Tampering rules prevent Cuban from coming out and saying it, but the Mavs aren’t bowing out of the Dwight Howard sweepstakes unless they can acquire a building block in the next week and a half. “It’s gotta be something really, really, really good,” Cuban said. “It’s got to be a futures type player that we can build around or really adds a lot.” ESPN.com

February 7, 2013 Updates

The tax, which kicks in when a team surpasses the salary cap (approximately $58 million this season) and goes above the threshold ($70.3 million this season), is at the root of the change. The dollar-for-dollar format that was in place in the old CBA has been replaced by a structure in which a team like the Lakers is on pace to pay at a rate as high as $4.25 for every extra dollar. But the "repeater tax" is a major factor as well, as – starting in the 2014-15 campaign – teams that are in the tax in four of any five seasons will be paying yet another dollar for every dollar above the threshold as well as facing serious restrictions when it comes to the mechanisms put in place to build their teams. "If you can find a reasonable facsimile (of a player) for a reduced (financial) number, you're going to do it," one Western Conference general manager told USA TODAY Sports. He spoke on the condition of anonymity because of the sensitive nature of the CBA. "The punitive nature of where we're going with the repeater tax and the escalating tax number puts you in a position where it's just not viable to have a third or fourth guy on your roster paid like a first or second guy." USA Today Sports

If the Lakers are able to re-sign free-agent-to-be Dwight Howard to a maximum contract deal this summer and they don't make any trades, they would have a payroll of approximately $100 million with just nine players on the roster (the league minimum is 12) for next season. Even at that price – which would be increased with a handful of players on the relative cheap – the Lakers' tax payment based on estimates of the salary cap and luxury tax threshold for next season would be a whopping $72.8 million. The price tag for a Lakers team that has hardly been the championship contender that was expected, then, would be an astounding $172.8 million. As such, it should surprise no one that the future of forward Pau Gasol ($19.2 million next season in the last year of his deal) and even Kobe Bryant (who's a free agent in 2014) is suddenly uncertain. USA Today Sports

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