HoopsHype Salary Cap rumors

July 6, 2014 Updates
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

June 4, 2014 Updates

The happiest member of the just-announced All-NBA teams is likely Paul George, who had a large clause in his contract triggered by being named to the third team on Wednesday. As part of the contract that George signed with the Indiana Pacers last summer, making the All-NBA team activates a nearly $7 million bonus in that deal, according to sources. George becomes the third player since 2011 to hit what has become known as the "Rose Provision," which is an escalator bonus in some maximum contracts. ESPN.com

Noah’s first-team nod gives him a $500K bonus that was originally deemed unlikely. It’ll be added to his cap figure, but it probably won’t be enough to tip the Bulls over the luxury tax line this season, as they scrambled to make late season moves to avoid any scenario in which they would have to do so. Hoops Rumors

June 2, 2014 Updates

The Orlando Magic could have as much as $22.7 million in available salary cap space to use this summer in free agency. But you shouldn’t expect the Magic to make a major free-agent splash. After wading into the “kiddie pool” last summer, the team will be more aggressive this July. But it almost certainly won’t go after a maximum-salary free agent. Put it this way: If the worst available free agent this summer would rate as a “1” and LeBron James would rate as a “10,” then the Magic likely will go after a 5 or a 6. Orlando Sentinel

April 20, 2014 Updates

The NBA has informed teams that it is projecting a rise in the salary cap of nearly $5 million for next season, which could aid clubs such as Chicago and Houston in their attempts to steal free agent-to-be Carmelo Anthony from the New York Knicks, according to sources familiar with the forecasts. ESPN.com

April 19, 2014 Updates

Regardless of how this series turns out for the Bobcats, what’s the upside for this team considering the salary cap room, the number of draft picks and securing a head coach in Steve Clifford? A: I would say the future is bright and I think it started with the Al Jefferson deal, a deal a lot of people questioned. He’s given them an anchor on their front line offensively, especially on a team that doesn’t shoot it well. I like Kemba Walker. I think he’s definitely a guy that he will be a guy you can rely on to be the starting point guard for many years to come. Charlotte Observer

April 18, 2014 Updates
March 14, 2014 Updates

The Celtics will have extensive salary cap space in the summer of 2015, but the organization hasn’t attracted a major free agent in his prime in more than 20 years. Grousbeck is confident that will change. “In my opinion, Kevin Garnett chose to come here,” he said. “Not technically a free agent, but it was a choice to come to Boston and he could have not come, not signed the extension. And that led to a championship. Kevin and Doc [Rivers] coming here and saying such great things about Boston definitely helps our recruiting position. “There’s money everywhere in the league now. The money is so big in the league that guys will get their money one way or another. The only difference is championship rings. I’ve got one on right now. When guys really want a ring, we think they’re going to look at us, look at Brad, look at our fans and our ownership support, and say this is a place they’ll consider.” Boston Globe

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