HoopsHype Salary Cap rumors

June 2, 2013 Updates
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

February 1, 2013 Updates
September 6, 2012 Updates

Teams in China's professional basketball league are calling for an NBA-style salary cap after a sharp rise in overseas players signing big-money contracts. "We've been talking about how to make it happen," Bai Xilin, director of the Chinese Basketball Association (CBA) competition department, told the China Daily newspaper. "There is no timeline yet." Chicago Tribune

August 10, 2012 Updates

Choosing a path that will allow them to rebuild from the ground up with a collection of draft picks, promising young players and future salary cap space, the Orlando Magic divorced themselves from Dwight Howard and started anew on Friday. NBA.com

July 10, 2012 Updates
June 22, 2012 Updates

Under the CBA ratified by owners and players in December, the salary cap and luxury tax threshold cannot go lower in 2012-13 than their levels in the first year of the deal -- $58 million and $70.3 million, respectively. Despite a robust post-lockout recovery that included salvaging all $900 million or so of the league's national broadcast revenues, sources familiar with the NBA's finances believe overall revenues did not increase enough in 2011-12 to push the cap and tax significantly beyond current levels until 2013-14, the first season under a more punitive luxury tax designed to rein in big-spending teams. CBSSports.com

League executives expect the spending gap between the top and bottom to narrow as the effects of the new CBA kick in, beginning in 2013 -14 with vastly more onerous luxury-tax provisions. Indeed, some of the financial reset is expected to phase in during free agency this summer as teams position themselves to comply with the new guidelines and new player contracts begin to converge with old ones on teams' salary books. CBSSports.com

May 14, 2012 Updates

The N.B.A. players union is asking an arbitrator to clarify certain free-agent rights in a case that could immeasurably benefit the Knicks this summer, according to several people involved in the process. The case concerns what are known as “Bird rights,” which allow a player to re-sign with his team, without regard to the salary cap. The league contends those rights are lost when a player changes teams through waivers. The union is challenging that interpretation. New York Times

March 25, 2012 Updates

A financial riddle stumped officials in one NBA team's front office. It concerned the league's byzantine legalese regarding the salary cap. They needed help, fast. One official phoned the league office, seeking clarity. Another inspected the text of the NBA's collective bargaining agreement, a canon of lawyerly jargon as comprehensible as Sanskrit. Then, another official surfed to an exhaustively detailed online FAQ about the NBA labor deal authored by Larry Coon, a 49-year-old information technology director at UC Irvine. Coon laughed as he shared this anecdote. His list of NBA sources spans across the league's 30 teams, all because he explains something most deem unexplainable: the NBA salary cap. "You're the reason I have a job," one NBA general manager told him. Aberdeen News

Within the NBA, his work is appreciated. "It helps us because the more educated the fans are on the vehicles that you need to get things accomplished, the more they have realistic expectations," said Neil Olshey, the Clippers' vice president of basketball operations. For all the time he puts into his FAQ, Coon neither wants nor expects a dime in return; he doesn't even have advertisements on his simply designed site. It's a hobby to him, an entity free of commercial interest, and he wants to keep it like that. Aberdeen News

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