Tags : :
Salary cap hell is coming to some teams in the NBA.
The salary cap next season it not expected to rise. It is currently at $58+ million and the most improtant figure for luxury tax threshold is about $70 million.
Under terms of the new CBA teams over the cap are going to pay a higher penality. Starting this season each team must be under the cap 3 times in any 4 year period. If a team is over the cap twice or more in that four year period they will pay a luxury tax on a sliding scale. The more you are over the more you will pay.
In the past it was a dollar for a dollar. This year the Lakers lead the NBA in salary and paid a $16 million penality. That money goes to the teams that are under the cap.The Lakers are the biggest money making team, by far, in the League. Their new television deal pays them over a $100 million a year but even they have a limit on spending.
Since I am talking Lakers here lets stay with them into next season.
If the Lakers do nothing they have a payroll of $83 million committed for next season, but they only have 9 players on their roster they are committed to paying. Adding players to make a full roster will cost around another $10 million, making their commitment $93 million. Using the sliding scale, because they will have been over the first two years, their luxury tax would be about $70 million.($23 million x 3.5 = $70 million) The sliding scare of taxes moves .5 for every $5 mil you go over the cap. That would put the Lakers at a 3.5 penality.
Even Jerry Buss won't pay these kind of dollars. Remember they tried to trade Pau to Houston and Lamar to NO in the Paul deal. They are going to have to shed salary next season and I see Pau as the victim.
David Sterns main stated goal in this newest CBA was to bring salary inequity into balance. Mark Cuban said his biggest mistake was not the trade of Tyson Chandler but when he signed the new agreement.
Let's say a team says, screw it and the tax, I am going for it, there is another problem. No team over the cap, remember we are talking twice in any four year period, can do a sign and trade to take on another player.
So how do you sign a new player when you are over the cap. You can't because you are over the cap and can't trade for salary. In other words you are in hell.
The only option is the amnesty clause. This allows you to rid salary cap figure for one player a year but you still have to pay the player. So if the Lakers use amnesty on Pau, they will still owe him his salary but it won't count against their cap.
The revenue generating and ratings leaders in the NBA got screwed in spades with this new CBA. It has already cost the Mavericks three players and next season it is going to start to hit other teams as well..
Yet no one is talking of this. Just wait!