Re: Deals before July 1st
posted at 5/17/2011 2:06 PM EDT
In Response to Re: Deals before July 1st
[QUOTE]In Response to Re: Deals before July 1st : They will have to pay the Luxury Tax unless they are able to make other trades after the new CBA is instituted. That's why a team like the C's (willing to pay the tax) can make trades now for players that fit under the current cap that may not under a new cap.
Posted by Mployee8[/QUOTE]
The current cap is a soft cap at about $58million - it allows teams to pay its own players whatever they want to but cannot add players (other than through the exceptions, e.g. MLE) once they are over the cap. They then pay a luxury tax above $72 million (don't hold me to that). So the Cs are into the luxury tax as are many of the best teams (that is why they are the best!!!). What has been floated in the media is that the new cap will not be lower at about $58 million but it will be a hard cap, i.e. you simply cannot go over that number without ridding yourself of players. It is the exact situation the Bruins went through this year. Savard and Sturm were on the injured list so their salaries didn't count toward the cap but when they came off the injured list the Bruins had to trade two players for what amounted to draft picks because they could not take salary back in the trades.
So in the new CBA, as has been painted so far, there could be a new hard cap at about $58 million (Rondo, Pierce, KG, and Ray are at about $52 million next year). How the addition or retaining or trading of players will be grandfathered in is not clear.
What is clear is that the league is looking to cut salaries on average by about 40%.
This will have GMs taking more polished players in the draft and leaving "potential" in school longer because they will be unable carry "potential" on the bench with limited or no output from that player / salary slot.
I think the luxury tax would simply be gone because you cannot go over the cap.
When Miami can't even sell out a playoff game and you watch games and it appears that a third of the seats are empty, they simply cannot go on the way they have.
Hopefully this sheds some light on why all of these crazy Howard, Gay, Pierce, KG, Ray blah blah blah threads are simply silly.