<div class="quote_poster">Quote:</div><div class="quote_post">With Saturday's ratification of the NBA's six-year collective bargaining agreement, the Heat received clarity regarding its budget constraints for 2005-06. For the first time, the league has set the threshold for the dollar-for-dollar luxury tax in advance, a figure Heat President Pat Riley has vowed to use as a budget benchmark. With that figure set at $61.7 million, the Heat appears in position to spend its entire $5 million mid-level salary-cap exception without incurring a significant tax. In addition, should the team receive expected pay concessions from center Shaquille O'Neal in a new five-year contract, it also could be in position to spend its $2 million trade exception. The soft salary cap for the upcoming season has been set at $49.5 million, a $5.63 million increase from last season. The Heat's payroll for the coming season already is estimated in excess of $55 million, when counting an O'Neal deal expected to start in the range of $25 million, a payment still due to waived forward Wesley Person, a small guarantee to rookie Matt Walsh, as well as the contracts of Dwyane Wade, Eddie Jones, Michael Doleac, Rasual Butler, Dorrell Wright, Alonzo Mourning, Qyntel Woods, Wayne Simien and Udonis Haslem. The league also announced the signing moratorium that began July 1 will end Tuesday at noon. At that point, the Heat will be able to forward Haslem's new five-year agreement to the league for certification, as well as the new contract for O'Neal, who will opt out of next season's $30 million deal for a five-year package valued between $115 million and $125 million. The Heat continues to work toward an agreement with free-agent point guard Damon Jones and has had ongoing conversations with several free agents, including Boston forward Antoine Walker. Depending on an agreement with Damon Jones, the Heat could operate slightly in excess of the luxury tax. Riley said his team would consider operating above the tax threshold, provided the Heat's share of the tax rebated by the league is larger than the amount the team pays into the fund. The new CBA also extends a one-time exemption for teams to release a player by Aug. 15 to avoid counting that player against the luxury tax. Such a contract would continue to count against the salary cap, with full payment still due. With the luxury-tax threshold somewhat higher than anticipated, it negates the need for the Heat to consider such a move with guard Eddie Jones. Instead, the Heat could use the exception to wipe its payment to Person from its tax payroll. Because of the amnesty rule, several veterans could be added to the free-agent market, including Michael Finley, Allan Houston and Brian Grant, players who could entice the Heat at lower salaries. The new agreement raises the minimum-age requirement to 19, allows teams to farm out players to the minor-league NBA Development League, reduces the maximum lengths and raises in contracts, and includes four random drug tests per season for veterans, with enhanced penalties for performance-enhancing substances.</div> Source
