2010 Salary Cap Question

[action781]

The celtics appear to be in good financial position going into the summer of 2010.  We won't have enough money to bag a big free agent, but we will already have 2 superstars, Rondo, Sheed and Perk signed, which is more that many of these teams with cap space will be able to sign.  But we will have some cap space.  We have only $51M committed thus far, so do have some room to work with.

Once we have salaries totaling over the cap (approx $58M), we can only sign players with exceptions like bird rights, the MLE, etc.  Here is my question:  does order matter in the signing of players?

For instance, on the first day of free agency, would it be unwise to resign Ray Allen for $7M?  If we do, then that would get us up to the cap, then we'd only have the MLE to sign notable free agents.  Alternatively, couldn't we spend the $7M in cap room on another free agent or 2 first, then still sign Ray with bird rights, then also still have the MLE and other exceptions?

Is this the way things are usually done?  Or does order of signing players not matter?

[Roy Hobbs]

The shorthand version of how it works is this:

To determine cap room, you look at the total salaries existing on your roster.  You then factor in "cap holds" for your own free agents, which presume up to a 300% raise on their previous salary.  Then, there are roster penalties / holds equivalent to the rookie minimum for all of the players on your roster below the minimum of 13.  Then, you factor in a hold for any first round draft picks you made.  Lastly, there's a hold for the exceptions you have, such as the MLE or LLE (teams with less than around $8 million in cap space after all other holds are applied are allowed to use the MLE or LLE in lieu of cap space, if they so desire).

As these "holds" disappear -- either by "renouncing" free agents or the exception, or by signing a player -- the salary cap space your team has is adjusted.   

[action781]

Thanks Roy, I learned something from what you posted, but I'm not quite sure if I understood the answer to my question.

So, even though we will only have $51M committed (lets just assume all team and player options are exercised), does a "cap hold" on Ray prevent us from having $7M in cap space to sign a free agent without using an exception?

If so, when does that "cap hold" disappear?  When he's signed by another team?

[JSD]

Thanks Roy, I learned something from what you posted, but I'm not quite sure if I understood the answer to my question.

So, even though we will only have $51M committed (lets just assume all team and player options are exercised), does a "cap hold" on Ray prevent us from having $7M in cap space to sign a free agent without using an exception?

If so, when does that "cap hold" disappear?  When he's signed by another team?

The cap holds will disappear once a player is "renounced" by a team. Also, the exceptions don't exist for a team that is $7 million under the cap (or the team that is $7 million under has the option of using exceptions or cap space but not both).

[Roy Hobbs]

Thanks Roy, I learned something from what you posted, but I'm not quite sure if I understood the answer to my question.

So, even though we will only have $51M committed (lets just assume all team and player options are exercised), does a "cap hold" on Ray prevent us from having $7M in cap space to sign a free agent without using an exception?

If so, when does that "cap hold" disappear?  When he's signed by another team?

Yeah, we don't actually have "cap space" until Ray's cap hold is addressed.  That can be via: 1) signing him to a contract, or 2) renouncing him (meaning we give up our Bird rights to sign him, and can only offer him the veteran minimum or whatever cap space we have left in the future.)