The Jazz Wonderbra
Well-Known Member
Ooops. I am not a so called 'capologist' but I found this article. For every dollar the Cavs spend above $128 million they will be hit with the repeater tax which starts at $3.75 and is estimated to be upwards of $3.88 per dollar for the Cavs because they go beyond the first threshold!
So, trading Tristan Thomson for Favors reduces their payroll from $137 mill to $132.6 mill. That saves them $17 million in repeater tax this season plus $4.4 million in salary difference. That move saves them $21 million dollars immediately. The implications beyond this year are major as well since that repeater tax makes every dollar over the cap continue to hit them at $3.75 - $4.75 per dollar are crazy high. Assuming the Cavs want to sign IT, resign Lebron, and have a team of 14 players... they are going to be in the luxury tax again next year. That repeater tax only bites if they are above the $128 line (which may move). But the Cavs cannot have a big three if they don't resign IT because they will be over the cap. The Cavs essentially have to shed salary or they are going to be paying crazy money next year. If they resign IT for just $22 million then they are at $144 million next year with 10 players on the roster. Filling out the roster with minimums probably puts them around $155 million which means they are paying a minimum of $3.75 and growing to $4.75 per dollar over the $128 number. That's around $115 million dollars in luxury tax, repeater tax, not including salaries. So... we are looking at a team that is operating at a loss, surely!
Surely the Cavs should be doing everything they can to get below the Luxury tax this year so they don't go repeater tax crazy. Dumping Iman Shumpert for a second rounder should be right up their alley because it would save them huge dollars.
If we grabbed that Nets pick, you know what Dennis and Quin and J. Bryant would do with it...
And I don't think that the Cavs fans would hate what Favors delivers on the defensive end of the floor either.
http://www.cleveland.com/cavs/index.ssf/2017/06/cavaliers_luxury_tax_kyle_korv.html
So, trading Tristan Thomson for Favors reduces their payroll from $137 mill to $132.6 mill. That saves them $17 million in repeater tax this season plus $4.4 million in salary difference. That move saves them $21 million dollars immediately. The implications beyond this year are major as well since that repeater tax makes every dollar over the cap continue to hit them at $3.75 - $4.75 per dollar are crazy high. Assuming the Cavs want to sign IT, resign Lebron, and have a team of 14 players... they are going to be in the luxury tax again next year. That repeater tax only bites if they are above the $128 line (which may move). But the Cavs cannot have a big three if they don't resign IT because they will be over the cap. The Cavs essentially have to shed salary or they are going to be paying crazy money next year. If they resign IT for just $22 million then they are at $144 million next year with 10 players on the roster. Filling out the roster with minimums probably puts them around $155 million which means they are paying a minimum of $3.75 and growing to $4.75 per dollar over the $128 number. That's around $115 million dollars in luxury tax, repeater tax, not including salaries. So... we are looking at a team that is operating at a loss, surely!
Surely the Cavs should be doing everything they can to get below the Luxury tax this year so they don't go repeater tax crazy. Dumping Iman Shumpert for a second rounder should be right up their alley because it would save them huge dollars.
If we grabbed that Nets pick, you know what Dennis and Quin and J. Bryant would do with it...
And I don't think that the Cavs fans would hate what Favors delivers on the defensive end of the floor either.
http://www.cleveland.com/cavs/index.ssf/2017/06/cavaliers_luxury_tax_kyle_korv.html