Question for Capologists

[mellow]

Another question: I heard on the radio that if a team (the Jazz) did not hit the 90% salary floor they had to pay out the money to current players AND they were not eligible for luxury tax payments from the Lakers/Nets/etc.

Is the second stipulation true? If it is, this trade just made Utah boat loads of money.

I read that same thing earlier this week in these forums. Never saw a certain answer.

 

[Stifle Tower]

This is incorrect. The "minimum payroll" is 90% of the cap, and is equal to the actual monies paid.

Link: https://www.cbafaq.com/salarycap.htm#Q15

Isn't the cap $58M. So 90% would be $52M? Actual monies paid changes the dynamics of waiting until the deadline to take on salaries. Couldn't make it to the floor in that case.

 

[Stifle Tower]

Another question: I heard on the radio that if a team (the Jazz) did not hit the 90% salary floor they had to pay out the money to current players AND they were not eligible for luxury tax payments from the Lakers/Nets/etc.

Is the second stipulation true? If it is, this trade just made Utah boat loads of money.

Well, I doubt the tax payment will be $24M, the amount of salary they took on. Financially, it still would have made more sense to sign serviceable players who could be signed for much less than what Jefferson and Biedrins are getting. Rush is a decent deal at $4M, IMO.

 

[GVC]

Isn't the cap $58M. So 90% would be $52M?

1. Not sure the exact cap figure yet.

2. I was answering your question about how payroll is calculated. It is not an end of season cap calculation (like the LT calculation), rather the actual monies paid to the players employed throughout the season.

 

[The Midnight]

I don't have an answer but I wanted to touch on a pet peeve. We hear, ad nauseum that we need to thank the Millers for this or that, or "the Millers stepped up financially" and made a commitment etc etc.

I own a business and no one in the community seems to find the need to thank me when I make the financial commitment to purchase 2 new work trucks. And here's an odd twist: those help me grown and sustain my business. I don't do it cause it's a charity. Neither is the Utah Jazz. They aren't feeding the homeless here when they buy a draft pick.

Rant over.

"Charlotte Bobcats"

 

[green]

Well, I doubt the tax payment will be $24M, the amount of salary they took on. Financially, it still would have made more sense to sign serviceable players who could be signed for much less than what Jefferson and Biedrins are getting. Rush is a decent deal at $4M, IMO.

They have to pay the 24 million one way or another. The money was spent already. What I'm wondering I'd this:

At the end of the year, teams over the cap pay their tax. The tax goes into a pot and split among teams that were under the cap. I heard if you aren't at the floor, you aren't eligible for that payment.

If this is true, then the Jazz just made themselves over 5 million. Not too shabby.

 

[Stifle Tower]

1. Not sure the exact cap figure yet.

2. I was answering your question about how payroll is calculated. It is not an end of season cap calculation (like the LT calculation), rather the actual monies paid to the players employed throughout the season.

Thanks.

 

[Stifle Tower]

They have to pay the 24 million one way or another. The money was spent already. What I'm wondering I'd this:

At the end of the year, teams over the cap pay their tax. The tax goes into a pot and split among teams that were under the cap. I heard if you aren't at the floor, you aren't eligible for that payment.

If this is true, then the Jazz just made themselves over 5 million. Not too shabby.

GVC just clarified that. I was thinking the floor was calculated like the luxury tax - i.e. the Jazz could simply add on contracts at the deadline. GVC's explanation makes the trade a truly brilliant move by Lindsey. Jazz will reach the floor, do not hurt cap space for next season and are taking on players who can all come off the bench without sacrificing the development of our young core.

 

[Bodhi]

True we could potentially sign other guys besides Bied's and Jefferson, but would they only sign for a year? Do they come with a first round pick?

There's not a lot of guys out there I'd want to tie up flexibility with, in this free agent pool. Considering the circumstances, I think Lindsey hit (another) home run.