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Old 06-30-2009, 12:17 AM   #1
Join Date: Oct 2006
Location: Downtown Hoops Dojo
Posts: 29,321
Default Off Season Numbers The Cap and Luxury Tax

We have quite a few threads going now discussing this player and that. So here's a look at the Lakers financial situation this off season

Team Salary Outlook

Cap Holds

As you can see the Base Salary is $64,233,486
With cap holds on Lamar, Trevor and Brown that number is roughly $86,390,300

The salary cap for next season could be around 58 million dollars, there are some saying it could fall as low as 55 million.

The luxury tax level is most likely going to fall someplace between 69 to 72 million dollars

a couple things to note,
a team is only capable of signing a free agent if they are far enough under the cap, so that signing that player does not put them over the cap. ie: if you're 10 million under the cap you can only sign a player for 10 million or less.

Trades, a general rule of thumb to follow is, when making a trade salaries have to match, if ten million dollars in salries leaves then 10 million have to come back. there are exceptions and such to this but it's a good place to start.

free agent exceptions, there a re few exceptions in place that allow teams over the cap to sign a free agent, they are

the MLE (mid level exception) is a 5.5 million dollar exception to the cap rule, it can be split up between multiple players, used in it's all or fraction of. it's is a exception that each team gets every year that allows a team over the cap to sign free agents to 5.5 million dollars max. it cannot be combined with any other exception. it is not available to teams under the cap

biannual exception, like the parmeters of the mle it is a exception that allows teams over the cap to sign free agents to yearly contracts of 2 million dollars a year (on the first year) it is called the bi annual because teams may not use this exception two years in a row. like the MLE it cannot be combined.
it also can be split up to sign more than one player it cannot be for less than 2 million dollars and the contract is limited to two years max with an 8% raise on the second year

minimum player exception, this allows teams once again over the cap to sign players to one or two year contracts for the league minimum pay scale, this is on a scale based on a players years in the league it is between 500k for a rookie and 1.3 million for a vet with more than 10 years in the league. roughly it gos up around 100k for every year a player has been in the league. a team can sign as many players it likes using this exception.

We have 3 oustanding free agents lamar trevor and brown. the Lakers have "bird rights" on Lamar and Trevor, that means the Lakers can sign them to larger and longer contracts than anyone else despite being over the cap. bird rights were named after, you guessed it larry bird because the celtics were the first team allowed to go over the cap to sign their own free agent

Brown is a different case, the Lakers don't have "bird rights" but he was under contract to them last season so they have "non bird exception" rights on him which is what they would use to sign him because they are over the cap, the amounts are limited as to how much the lakers can spend and they could easily be outbid for browns service, the non bird exception does not allow the lakers to offer him a greater contract than anyone else, it just allows them to offer him a contract despite being over the cap.

ok that's it hope this helps guide the conversation a bit as we hit the off season in full stride, next week the fun begins as teams can begin to communicate with free agents

fell free to discuss ask questions add something i forgot or clarify something i butchered

Last edited by gts : 06-30-2009 at 12:20 AM.
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