The Cap is $57.7 Million

[WraithSentinel]

http://twitter.com/atlanta_hawks

salary cap will be 57.7 mil next year.

Is that what everyone expected it to be? If so, where is the luxury tax level at?

Edited July 8, 2009 by UltimaDragonReaver

[Rick]

From Sekou -

New salary cap numbers (per NBA). New cap is $57.7 million. Luxury tax is $69.92 million. 2008-09 numbers were $58.68 and $71.15.

[mrhonline]

That's almost a million lower than recent reports suggested.

That's significant for Toronto and Portland.

[NJHAWK]

I understand why the salary cap is lowered but wht does the luxury tax get lowered. Im suprised the union lets that happen.

[mrhonline]

Nearly half the teams in the league will be in luxury tax trouble. That might be the sound of a plane headed for Greece...we'l see, I guess.

[Brotha2ThaNite]

I don't know if anyone in our FO(BK, Sund or ASG) saw this coming but GREAT JOB GUYS you are in GREAT SHAPE to work with this.

Or maybe you all got lucky because you were being cheap the whole time. LOL

[Brotha2ThaNite]

Hoopworld.com

The NBA

has set the salary cap for the 2009-10 season, and it's almost a million less than many expected (a flat number from last season's $58.6 million). Here is the text of the NBA's press release:

The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.

The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement.

The new Salary Cap and tax level go into effect at 12:01 a.m. ET on Wednesday, July 8, when the league's "moratorium period" ends and teams can begin signing free agents and making trades.

The mid-level exception is $5.854 million for the 2009-10 season and the minimum team salary, which is set at 75% of the Salary Cap, is $43.275 million.

So what does this mean? It means all those players who have already agreed to full MLE deals - Ron Artest with the L.A. Lakers, Trevor Ariza in Houston, Rasheed Wallace in Boston, Marcin Gortat with an offer sheet in Dallas - will have salaries that look like this if they do in fact sign for the full MLE:

Year 1 - $5,854,000

Year 2 - $6,322,320 (yearly increase of $468,320 - 8%)

Year 3 - $6,790,640

Year 4 - $7,258,960

Year 5 - $7,727,280

Total - $33,953,200

It also means that teams who committed all their cap space to a given free agent - such as the Toronto Raptors with Hedo Turkoglu - will be paying that player much less over the course of the contract than we initially thought. Reportedly the cap was going to stay relatively flat - or increase ever so slightly - so any previously supposed numbers will now have to be re-evaluated.

It also means two players who will begin their fifth year in the NBA this season and signed maximum deals last summer to kick in after the end of their rookie contracts - Utah Jazz point guard Deron Williams and New Orleans Hornets

point guard Chris Paul - will make less than they originally thought as well. That number is calculated based on a formula that includes 48.04% of projected Basketball Related Income - for more details on maximum contracts and other details surrounding this announcement, check out Larry Coon's CBA FAQ (question 11).

Another thing to note is teams that had not spent their cap space now need to re-evaluate how much they have to spend and how much they are willing to spend for the remaining uncommitted free agents. Rest assured this announcement will impact quite a few teams - stay tuned to HOOPSWORLD on just how that will happen.

[xhawk]

I understand why the salary cap is lowered but wht does the luxury tax get lowered. Im suprised the union lets that happen.

In short, the CBA is essentially a revenue sharing agreement--both numbers are based off of revenue. Not having a luxury tax number grounded in revenue would sort of defeat its purpose.

[coachx]

I understand why the salary cap is lowered but wht does the luxury tax get lowered. Im suprised the union lets that happen.

The players union agreed to the "CBA" which has the formulas that generate both the cap and the luxury tax limit. Nothing they can do about it.

http://realgm.com/src_wiretap_archives/604...r_09_10_season/

The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.

The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement.

[coachx]

That's almost a million lower than recent reports suggested.

That's significant for Toronto and Portland.

Could it make Potland lower their asperation a little and target Marvin ?