Hawks not looking to fill last roster spot due to luxury tax

[TheNorthCydeRises]

13 hours ago, NBASupes said:

No need to be in the LT this year when we are a lock to be in it next year

 

We're definitely not a lock to be in it next year.  We could easily lose a guy like Kevin and Gallo might be traded off if Jalen rapidly develops.

And if money is REALLY an issue for Ressler, we might trade off Cam in order to not pay him.

[macdaddy]

54 minutes ago, TheNorthCydeRises said:

 

We're definitely not a lock to be in it next year.  We could easily lose a guy like Kevin and Gallo might be traded off if Jalen rapidly develops.

And if money is REALLY an issue for Ressler, we might trade off Cam in order to not pay him.

Ressler money issues.

   

 

[MarylandHawk]

On 8/11/2021 at 6:33 PM, JayBirdHawk said:

We are $1.8 million under the LT.

We have $5.5 mil left of the MLE...we can use up to $1.8 mil of it to stay under the LT...or just sign a vet min player for $1.6 mil.

Right, so if we choose to use the exception we do not have to pay luxury tax. 

[JayBirdHawk]

11 minutes ago, MarylandHawk said:

Right, so if we choose to use the exception we do not have to pay luxury tax. 

The Mid-Level Exception of $9.5 mil is used when you are over the cap  of $112.4 million (which we are) but under the Luxury tax  of $136.6 (which we are). 

We have used $4 mil (Dieng) of the $9.5mil so we have $5.5 mil.  However, since we are only $1.8 million from the tax line that what is available to sign a FA and stay UNDER the LT.  

If we use the entire $5.5 million we'll be at $140.3 million - $3.7 million OVER the LT.

Hope that's clearer.

 

Edited:

For teams between $0 and $4,999,999 over the cap, the tax rate is $1.50 for every dollar over the cap. 

• The incremental maximum for this level is $7.5 million.

 

Additionally, there’s a higher tax for teams known as repeat offenders. Repeat offenders are defined as teams that have paid luxury taxes in at least three of the prior four seasons.

For repeat offenders, the luxury tax breaks down as follows:

• For teams between $0 and $4,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap.
  • The incremental maximum for this level is $12.5 million.

 

The Repeater Tax is why we would not want to go over the tax this year.

[MarylandHawk]

14 hours ago, JayBirdHawk said:

The Mid-Level Exception of $9.5 mil is used when you are over the cap  of $112.4 million (which we are) but under the Luxury tax  of $136.6 (which we are). 

We have used $4 mil (Dieng) of the $9.5mil so we have $5.5 mil.  However, since we are only $1.8 million from the tax line that what is available to sign a FA and stay UNDER the LT.  

If we use the entire $5.5 million we'll be at $140.3 million - $3.7 million OVER the LT.

Hope that's clearer.

 

Edited:

For teams between $0 and $4,999,999 over the cap, the tax rate is $1.50 for every dollar over the cap. 

• The incremental maximum for this level is $7.5 million.

 

Additionally, there’s a higher tax for teams known as repeat offenders. Repeat offenders are defined as teams that have paid luxury taxes in at least three of the prior four seasons.

For repeat offenders, the luxury tax breaks down as follows:

• For teams between $0 and $4,999,999 over the cap, the tax rate is $2.50 for every dollar over the cap.
  • The incremental maximum for this level is $12.5 million.

 

The Repeater Tax is why we would not want to go over the tax this year.

Got it. Whew. That NBA salary cap is a doozy.