http://myespn.go.com/blogs/truehoop/0-38-184/Money-for-NBA-Teams.html If 15 teams want to borrow at 8.27%, how valuable is 8M or so cash in your pocket and, say, the prospect of not paying Agent Zero another 100M or so? Or, :stirpot: Peja and CP3?
Maybe they ought to just lower the salary cap...seems like they are in a death spiral financially looking at that.
Lowering the cap may help in the future, but it doesn't help teams like the Bucks, Wizards and Pacers who all have payrolls >$70 million have multiple big long term contracts and not a chance of making the play-offs. In the case of the Wiz and the Bucks, their highest paid players also have injury issues. These teams need to dump salary and they need to dump it now. They can't wait for a lower cap to help them out. All a lower cap means is they'll be even further over the cap. Next year the Wizard's payroll balloons to almost $76 million. With a lower cap, unless they dump some contracts, they'll be $20 million over the cap. The Bulls and Kings are also in similar situations (although not quite as bad), and we all know the Suns and Grizz both have tighwad owners. Raef's super expiring contract has to look awful tempting to the owners of these teams. BNM
Looks like there's more and more of a chance that we will make a big splash, and get a Gasol-like trade here. Let the ripoff trade proposals come our way!
Lowering the cap is what will sink teams. Most of the salary predictions had the cap at 72 million. Now it will be around 65 million. Teams that go over the cap get screwed twice. Once because they loose there share of the cap payments from other teams. The second is the dollar for dollar tax on the payroll total over the cap. There is a slight to fair chance this will bankrupt a team or two. I read about this somewhere, but I don't have the link
Not quite true. A team can be over the cap and not pay luxury tax. The salary cap is based on 51% of total BRI (Basketball Related Income). The luxury tax kicks in at 61% of BRI. So, for the 2008-09 season, the Salary cap is $58.68 million and the luxury tax threshold is $71.15 million. That's one reason you see so many teams with a payroll of $65 - $71.5 million (15 of the 30 teams have payrolls in this range). They have made cuts and trades to get their total payroll under the luxury tax threshold. The best link I know for these details is Larry Coon's Salary Cap FAQ. BNM
There's no way the Hornets trade CP3.... I don't just see it.... I don't care what the economy looks like, he aint going anywhere. Now a guy like Butler, maybe....
I know it. It's not even worth dreaming about. CP3 is one of the top players in the league. I'd rather go bankrupt than give him away (if I was an owner)
Exactly. It would be like giving up Roy because we lost Paul Allen and the new owner doesn't want to pay the luxury tax in a year... only worse.
