HoopsHype Salary Cap rumors

July 12, 2014 Updates

With an eye toward maximizing the future of the salary cap, LeBron James finalized his contract with the Cleveland Cavaliers on Saturday, sources familiar with the process told ESPN.com. James signed a two-year, $42.1 million deal with the goal of re-signing with the Cavs before the 2016-17 season when a new television deal is expected to create a large jump in value of the maximum contract. ESPN.com

July 10, 2014 Updates
July 9, 2014 Updates

Kevin Pelton: Cap comes in $135,000 lower than projected. Not enough to really make a difference for any team, I don't think. Twitter @kpelton

In reality, New Jersey-based certified public accountant Robert Raiola said Anthony would net closer to $66.7 million with the Knicks after taxes, compared to $49.3 million with the Lakers. New York's offer would still be larger, but by a more modest $17.4 million. Independent salary cap expert Larry Coon argued the comparison itself was moot, unless the player was primarily focused on guaranteed salary. "Comparing a four-year contract to a five-year contract is like comparing apples to oranges," Coon told The Times. "A player who signs a four-year contract can presume he will sign for a fifth year down the line. It's not a matter of leaving that money on the table, it's a matter of locking in that money, and his future value, right now." Los Angeles Times

"For Anthony, other factors may come into play," Coon said. "There could be a new collective bargaining agreement between the owners and players' union in 2017. It could very well be more favorable to the players. "In addition, the NBA is expected to negotiate a new national television deal in 2016, which could significantly increase revenues and salaries. Anthony could take advantage by timing his next free agency for 2017." Los Angeles Times

July 8, 2014 Updates
July 6, 2014 Updates

Eric Pincus: Many misconceptions but Pau Gasol takes up $20 mil of Lakers' cap - that only goes away if he signs for less, leaves or is renounced. If Lakers cleared Gasol's $20 mil from their cap by renouncing him - they don't have his Bird Rights any more -can't sign him to go over cap. Twitter @EricPincus

July 2, 2014 Updates
June 30, 2014 Updates

That’s a valid concern. The basketball side of the Nets’ business is projected to have lost $144 million over the 2013-14 season, according to a confidential memo the league sent to all 30 teams in early June. (Grantland has reviewed and verified the memo with a half dozen sources.) If that strikes you as out of whack, that’s because it is. Grantland

The NBA expects nine teams will end up having lost money once luxury-tax distribution and revenue-sharing payments are finalized. The Nets, with that monster $144 million figure, are the biggest losers. Next in line? The Wizards, with projected losses of about $13 million. That’s right: The Nets lost $131 million more than any other NBA team last season. This is what happens when you pay $90 million in luxury tax for an aging roster and play in a market so large you are ineligible to receive any revenue-sharing help. Grantland

The Thunder are indeed paying into the revenue-sharing system, rare for such a tiny market, but they’re slated to make nearly $29 million in profit when everything is netted out. That’s the fifth-best projection in the league, trailing only the Lakers ($100.1 million), Bulls ($61 million), Rockets ($40.7 million), and Celtics ($33.1 million). Again: This memo does not capture the complete financial picture for any organization, but between this estimated profit and the general escalating value of all NBA franchises, it’s fair to take these numbers into account when debating the Thunder’s decision to trade James Harden and duck the luxury tax. Grantland

Holy cow, the Lakers! They end up with that huge profit despite contributing a league-high $49 million to revenue-sharing. The league’s revenue-sharing is complex, with payouts and contributions tied to all sorts of variables — market size, profitability, earnings benchmarks, and other stuff. A few teams, including the Lakers and Knicks, play in markets so large they are disqualified from ever receiving revenue-sharing payouts. Grantland

June 24, 2014 Updates

There is some debate about whether players should wait until the NBA’s new TV deal kicks in to sign their mega-contracts, since the individual player max is tied to the cap — which goes up hand-in-hand with league revenue. But turning down guaranteed long-term money is a gamble, and no one is quite sure when exactly the cap will make a huge leap. Grantland

June 12, 2014 Updates

With the salary cap expected to rise from $71.75 million to around $75 million this summer, the team could have room to bring back Harrington at the veteran minimum. But the Wizards’ needs and space will hinge largely on how things play out with priority free agents Trevor Ariza and Marcin Gortat. “(Wizards owner) Ted (Leonsis) got the pockets, so if he want to go in the luxury [tax] and all that, he can bring back every last one of us,” Harrington joked. “I think the core that we have here is great and as many guys as he can keep, I think the better. That’s a great locker room in there. … I’m really going to take some time off and then some time throughout the summer, I’ll start evaluating if I want to play or maybe do something else.” Washington Post

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