Official 2016 Salary cap: $94.143 million & Luxury tax: $113.287 million

[saltlover]

saltlover and others, help interpret this:

52. Are draft picks included in team salary? If so, for how much?

Unsigned first round picks are included in team salary immediately upon their selection in the draft. They count as 100% of the scale salary for that pick, unless there is a verbal agreement for a higher salary. An incident occurred in 1997 when Vancouver selected Antonio Daniels with their first pick, and Daniels subsequently revealed in an interview that he and the team had verbally agreed to a contract starting at the maximum allowed salary (120% of the scale amount). Since verbal agreements apply to team salary, the league then changed Daniels' cap figure from the scale amount to 120% of scale.

Once a first round pick signs a contract, his actual salary is included in the team salary, of course.

An unsigned first round pick is removed from team salary if the team and player both agree in writing not to sign any contract through the following June 30. The scale amount is returned to the team salary the following July 1. If the team renounces its draft rights, the player's scale amount is removed from the team salary permanently, and the team relinquishes its draft rights to the player (see question number 54).

If a first round pick signs with a non-NBA team, his scale amount is excluded from the team salary on the date he signs his non-NBA contract or the first day of the regular season, whichever is later. The scale amount goes back onto the team salary on the following July 1 or when his non-NBA contract ends, whichever is earlier. In other words, these cap holds are removed for players playing outside the NBA, but only during the regular season.

Unsigned second round picks are not included in team salary. This is a loophole teams sometimes leverage by trading late first round picks for second round picks in order to clear cap room.

As described in question number 87, the trade value of an unsigned first or second round draft pick is always $0.


Those two bolded paragraphs have me in a conflict.

My interpretation is that if we sign a letter that says we won't sign a contract this season with either or both Yabusele and Zizic, that they'll immediately be removed from the team cap space.

That said, if Yabusele and Zizic don't sign such a letter but they get a contract elsewhere in another league, their cap hold would only be removed at the start of the season.

Is that the correct interpretation? It gives us even more wiggle room if that's true with our free-agents and why there's a legit push to stash Yabusele and/or Zizic this year, particularly if we can get that letter signed.

My interpretation has been that the two would count on our cap until the beginning of the season.  It's something that could be useful in future years if the team is having luxury tax or hard cap issues, but this year there is limited advantage.

I was thinking the same until I read the letter portion and what it entailed. That a player signs an Euro contract or a D-League contract doesn't preclude them from entering the NBA during the season. So if the letter says you won't be bringing them this season for sure, then there's no reason to wait to remove their cap hold right?

You want to tweet at Pincus or Coon? You sometimes have successful tweeting skills.

[BudweiserCeltic]

saltlover and others, help interpret this:

52. Are draft picks included in team salary? If so, for how much?

Unsigned first round picks are included in team salary immediately upon their selection in the draft. They count as 100% of the scale salary for that pick, unless there is a verbal agreement for a higher salary. An incident occurred in 1997 when Vancouver selected Antonio Daniels with their first pick, and Daniels subsequently revealed in an interview that he and the team had verbally agreed to a contract starting at the maximum allowed salary (120% of the scale amount). Since verbal agreements apply to team salary, the league then changed Daniels' cap figure from the scale amount to 120% of scale.

Once a first round pick signs a contract, his actual salary is included in the team salary, of course.

An unsigned first round pick is removed from team salary if the team and player both agree in writing not to sign any contract through the following June 30. The scale amount is returned to the team salary the following July 1. If the team renounces its draft rights, the player's scale amount is removed from the team salary permanently, and the team relinquishes its draft rights to the player (see question number 54).

If a first round pick signs with a non-NBA team, his scale amount is excluded from the team salary on the date he signs his non-NBA contract or the first day of the regular season, whichever is later. The scale amount goes back onto the team salary on the following July 1 or when his non-NBA contract ends, whichever is earlier. In other words, these cap holds are removed for players playing outside the NBA, but only during the regular season.

Unsigned second round picks are not included in team salary. This is a loophole teams sometimes leverage by trading late first round picks for second round picks in order to clear cap room.

As described in question number 87, the trade value of an unsigned first or second round draft pick is always $0.


Those two bolded paragraphs have me in a conflict.

My interpretation is that if we sign a letter that says we won't sign a contract this season with either or both Yabusele and Zizic, that they'll immediately be removed from the team cap space.

That said, if Yabusele and Zizic don't sign such a letter but they get a contract elsewhere in another league, their cap hold would only be removed at the start of the season.

Is that the correct interpretation? It gives us even more wiggle room if that's true with our free-agents and why there's a legit push to stash Yabusele and/or Zizic this year, particularly if we can get that letter signed.

My interpretation has been that the two would count on our cap until the beginning of the season.  It's something that could be useful in future years if the team is having luxury tax or hard cap issues, but this year there is limited advantage.

I was thinking the same until I read the letter portion and what it entailed. That a player signs an Euro contract or a D-League contract doesn't preclude them from entering the NBA during the season. So if the letter says you won't be bringing them this season for sure, then there's no reason to wait to remove their cap hold right?

You want to tweet at Pincus or Coon? You sometimes have successful tweeting skills.

I'll be doing that in a second hehe.

[BudweiserCeltic]

OK, so Albert Nahmad (another cap Guru) tells me that with a letter, the cap hold is immediately removed. So that gives us more options.

[saltlover]

OK, so Albert Nahmad (another cap Guru) tells me that with a letter, the cap hold is immediately removed. So that gives us more options.

Oh neat!  TP for your Twitter skills!

Of course, the players would have to be willing to sign a letter, and either or both might want to hold out to try to force their way to the NBA earlier.  But definitely something to keep an eye on, and if we dump Young we'd have enough room to keep JJ.

[BudweiserCeltic]

Brian Windhorst ‏@WindhorstESPN
League telling teams it expects to have a $200M shortfall to pay players next year. Payment this year was $130M.

Brian Windhorst ‏@WindhorstESPN
In a new projection sent to teams today, league projecting salary cap next year to be $102M, lower than previous $108M projection.

If Ainge is being cautious of adding players to more than one-year deals, then this will make him hesitate even more.

[saltlover]

Brian Windhorst ‏@WindhorstESPN
League telling teams it expects to have a $200M shortfall to pay players next year. Payment this year was $130M.

Brian Windhorst ‏@WindhorstESPN
In a new projection sent to teams today, league projecting salary cap next year to be $102M, lower than previous $108M projection.

If Ainge is being cautious of adding players to more than one-year deals, then this will make him hesitate even more.

Interesting... I wonder a bit tho if this is pre-CBA wrangling.

[BudweiserCeltic]

Brian Windhorst ‏@WindhorstESPN
League telling teams it expects to have a $200M shortfall to pay players next year. Payment this year was $130M.

Brian Windhorst ‏@WindhorstESPN
In a new projection sent to teams today, league projecting salary cap next year to be $102M, lower than previous $108M projection.

If Ainge is being cautious of adding players to more than one-year deals, then this will make him hesitate even more.

Interesting... I wonder a bit tho if this is pre-CBA wrangling.

This should give some context:

Albert Nahmad
The $102M salary cap figure for 2017-18 still shouldn't be relied upon. Still a possible lockout in between. Cap could rise (or fall) again!

Albert Nahmad
Difference in shortfall projection creates $5.8M decrease in 2017-18 cap. So... This isn't caused by revenue drop, but by rise in salaries.

Albert Nahmad
Reason for drop: NBA now projects players to receive just $200M less in salaries and benefits for 2016-17 than their fair share. Was $375M.

[colincb]

Brian Windhorst ‏@WindhorstESPN
League telling teams it expects to have a $200M shortfall to pay players next year. Payment this year was $130M.

Brian Windhorst ‏@WindhorstESPN
In a new projection sent to teams today, league projecting salary cap next year to be $102M, lower than previous $108M projection.

If Ainge is being cautious of adding players to more than one-year deals, then this will make him hesitate even more.

I would have been surprised before, but this seems to block some possibilities (like matching a mid-range Sullinger offer). Danny will look for more 1+1 w/ team option contracts. Good chance we'll need a rebounder.

[BudweiserCeltic]

My take? Players like Durant and Wade not being signed with Bird Rights decreases the money that teams can spend.

So, I think this is a matter of lack of Bird Rights usage... maybe...

[saltlover]

My take? Players like Durant and Wade not being signed with Bird Rights decreases the money that teams can spend.

So, I think this is a matter of lack of Bird Rights usage... maybe...

You mean why the projection dropped?

[BudweiserCeltic]

And of course, this is the first thing that jump to my mind... how it will complicate Golden State keeping Durant & Curry:

Albert Nahmad
Warriors will be able to exceed cap to give Durant 20% raise, to $31.8M. Would need cap room to give him his max though. That’s now ~$33.6M.

Albert Nahmad
The projected 2017-18 salary cap drop from $107M to $102M makes Kevin Durant’s situation particularly interesting.

[BudweiserCeltic]

My take? Players like Durant and Wade not being signed with Bird Rights decreases the money that teams can spend.

So, I think this is a matter of lack of Bird Rights usage... maybe...

You mean why the projection dropped?

I mean why the teams might not reach the amount of salaries they were projected to hand out this season. If you sign players with Bird Rights, it allows for other teams to have more cap space to use. But if a player changes team, his former team can no longer use their cap space THEN go above salary cap to sign their players (in particular big money players).

So I think this could play into it a bit.

Another? Well maybe teams are hesitating at keep giving large contracts to role players, so maybe a lot of cap space is going to go unused.

We'll see.

[saltlover]

And of course, this is the first thing that jump to my mind... how it will complicate Golden State keeping Durant & Curry:

Albert Nahmad
Warriors will be able to exceed cap to give Durant 20% raise, to $31.8M. Would need cap room to give him his max though. That’s now ~$33.6M.

Albert Nahmad
The projected 2017-18 salary cap drop from $107M to $102M makes Kevin Durant’s situation particularly interesting.

It's actually potentially better for the Warriors.  The lower his max contract would start at, the more likely he is to opt-in to year 2, since there will be less of a difference.  Then he can sign a max deal the following year with Early Bird rights, so the Warriors could go above the cap both years to retain everyone.  Durant would look better for not re-entering free agency next year.  His deal could also get max raises, so he would recoup a little of what he let go next year.

[BudweiserCeltic]

And of course, this is the first thing that jump to my mind... how it will complicate Golden State keeping Durant & Curry:

Albert Nahmad
Warriors will be able to exceed cap to give Durant 20% raise, to $31.8M. Would need cap room to give him his max though. That’s now ~$33.6M.

Albert Nahmad
The projected 2017-18 salary cap drop from $107M to $102M makes Kevin Durant’s situation particularly interesting.

It's actually potentially better for the Warriors.  The lower his max contract would start at, the more likely he is to opt-in to year 2, since there will be less of a difference.  Then he can sign a max deal the following year with Early Bird rights, so the Warriors could go above the cap both years to retain everyone.  Durant would look better for not re-entering free agency next year.  His deal could also get max raises, so he would recoup a little of what he let go next year.

Well, you're talking about a $6M difference. Also,the following year the salary cap is projected to drop even further, so the year to get your big contract is next season.

Anyways, I don't envision Golden State having any problem carving out cap space to keep both Curry and Durant (just looked at the numbers, and man they do it very comfortably).

[saltlover]

My take? Players like Durant and Wade not being signed with Bird Rights decreases the money that teams can spend.

So, I think this is a matter of lack of Bird Rights usage... maybe...

You mean why the projection dropped?

I mean why the teams might not reach the amount of salaries they were projected to hand out this season. If you sign players with Bird Rights, it allows for other teams to have more cap space to use. But if a player changes team, his former team can no longer use their cap space THEN go above salary cap to sign their players (in particular big money players).

So I think this could play into it a bit.

Another? Well maybe teams are hesitating at keep giving large contracts to role players, so maybe a lot of cap space is going to go unused.

We'll see.

I think you've got it backwards.  Teams are spending more than the NBA projected.  The league projected that the players would be paid $375 million less than the CBA called for, so that money would get rolled over to the next cap.  Now they're projecting that teams are paying the players enough so that only $200 million will get rolled over to next cap -- the difference of $175 million spread out across 30 teams is $6 million.

I find this suspect myself, because the original projection would have had the average team spending less than the salary cap on the season.