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Old 06-30-2009, 01:17 AM   #1
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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 01:20 AM.
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Old 06-30-2009, 01:54 AM   #2
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Default Re: Off Season Numbers The Cap and Luxury Tax

okay I dont understand that "Cap hold" part and why lamars says "10+max"


Also the biannual exception cant be used every year, because it has to be a minimum of 2 year contract? so if you sign someone in 09, you have to wait till 2011 to sign another right?


This bird rights thing. isnt it like being a "restricted" free agent?
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Old 06-30-2009, 01:55 AM   #3
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Default Re: Off Season Numbers The Cap and Luxury Tax

Quote:
Originally Posted by MJ(Mean John)
okay I dont understand that "Cap hold" part and why lamars says "10+max"


Also the biannual exception cant be used every year, because it has to be a minimum of 2 year contract? so if you sign someone in 09, you have to wait till 2011 to sign another right?


This bird rights thing. isnt it like being a "restricted" free agent?



ok wait. The bird rights is diffrent because the lakers can SET the amount that lamar will be signed at?


Where as a restricted free agent, signs an offer sheet and LAL can match? but not pass the amount right?
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Old 06-30-2009, 02:31 AM   #4
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Default Re: Off Season Numbers The Cap and Luxury Tax

correct on the bi annual although it doesn't have to be a two year contract it can be only one, but like you said they only get one every other year

Quote:
Originally Posted by MJ(Mean John)
ok wait. The bird rights is diffrent because the lakers can SET the amount that lamar will be signed at?


Where as a restricted free agent, signs an offer sheet and LAL can match? but not pass the amount right?
he becomes restricted when his team makes him a qualifying offer, if no qualifying offer is made he remains a unrestricted free agent...

but once that qualifying offer is made that sets the wheels in motion, he can except the offer and if it's a max can sign up to 6 years or if it's not a max he becomes a unrestricted free agent the following season

or once a qualifying offer has been made other teams can make offers and like you said the lakers can match the offers..

that's what happend with turiaf, lakers made a qualifying offer, golden state made their bid the lakers didn't match.

even if a qualifying offer is made the player and team he played for can reach a settlement on a contract that doesn't fall under the qualifying max qualifying offer guidelines
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Old 06-30-2009, 12:07 PM   #5
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Default Re: Off Season Numbers The Cap and Luxury Tax

Quote:
Originally Posted by gts
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
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

Great research GTS, thank you so much for the very informative thread.
Actually, I am most intrigued with which teams are now way below the salary cap that might take interest on Odom and Ariza. I have been working 2 jobs lately, so I don't really have enough time searching for a site that can provide this info. I found one, but im not sure if they are accurate/updated.
If you think it's from 56mil to 58 mil, then the following teams are it.
Grizzlies, 37.7 mil
Pistons, 39 M
OKC, 41.7
Hawks 42.7
Raptors, 46
Blazers 48.6
Twolves, 50.8
Kings53.8
Nets, 54.7
Bobcats, 56.5
Most of these teams have no history of offering huge contracts to lure away really good players, like Odom and Ariza.
With ones with the most money to offer, Grizz esp, dumping a proven Gasol, no history IMO. Pistons I heard lost a lot of luxury boxes bec of the Car industry meltdown.
The teams in the 53 Mil range in theory can't go over the cap of bet 56-58 Mil, right?, that means they can't offer more than 5 Mil unless they dump salaries, so to me that leaves Portland (log jam at the frontline with Aldridge, Oden, Pryzbilla etc) and the Raptors(taking in Olajuwon's contract) that have history of signing big time players.
If this is accurate, then which teams pose the MOST THREAT of luring away Odom and Ariza in your opinion?
thanks again.

Last edited by tamaraw08 : 06-30-2009 at 12:11 PM.
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Old 06-30-2009, 12:16 PM   #6
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Default Re: Off Season Numbers The Cap and Luxury Tax

tamaraw08 i sent you a pm with a link for your cap numbers if you want to cross check them

like you have the pistons at 39 million and that's correct, but they also have close to 30 million in cap holds so until the waive rights to some guys they are basically closer to 69 million and unable to sign any free agents other than their own

this offseason there are alot of good free agents out there and not alot of money to go around so it wll be interesting to see how teams line themselves up. some of the teams with cap room have it because they are hoping to make a run at one of the big names next year and may not be willing to spend too much this season.

Last edited by gts : 06-30-2009 at 12:27 PM.
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Old 06-30-2009, 02:43 PM   #7
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Default Re: Off Season Numbers The Cap and Luxury Tax

Good Post. There were quite a few things I was unaware of. Must be something in the water where you live that gives you such a high posting IQ.
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Old 06-30-2009, 02:48 PM   #8
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Default Re: Off Season Numbers The Cap and Luxury Tax

Quote:
Originally Posted by SCV42
Good Post. There were quite a few things I was unaware of. Must be something in the water where you live that gives you such a high posting IQ.
haha... yeah my head is full of mineral deposits..
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Old 07-01-2009, 03:11 AM   #9
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Default Re: Off Season Numbers The Cap and Luxury Tax

just found something... lakers should trade morrison for stackhouse with the mavericks, the contract is 7.2 million but it's a team option and can be bought out for 2 million... that would take a few million off the books

not sure if the mavericks would want morrison or they maybe planning on buying him out themselves
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Old 07-01-2009, 03:14 AM   #10
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Default Re: Off Season Numbers The Cap and Luxury Tax

What the hell happend to jerry stackhouse anyway?
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Old 07-01-2009, 03:14 AM   #11
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Default Re: Off Season Numbers The Cap and Luxury Tax

Quote:
Originally Posted by gts
just found something... lakers should trade morrison for stackhouse with the mavericks, the contract is 7.2 million but it's a team option and can be bought out for 2 million... that would take a few million off the books

not sure if the mavericks would want morrison or they maybe planning on buying him out themselves
Getting rid of Morrison will help.

Also cut one of Mbenga/Powell...they are in for 959,000 next year and both are UNGUARANTEED contracts...we can cut and not have to pay them...

Since our Fc is loaded...release Mbenga and give a minimum deal to the Elonu kid.

Bilas said Elonu could have been a 1st rounder last year...says he's a steal..KEEP HIM MITCH.
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Old 07-01-2009, 03:19 AM   #12
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Default Re: Off Season Numbers The Cap and Luxury Tax

Quote:
Originally Posted by D-Rose
Getting rid of Morrison will help.

Also cut one of Mbenga/Powell...they are in for 959,000 next year and both are UNGUARANTEED contracts...we can cut and not have to pay them...

Since our Fc is loaded...release Mbenga and give a minimum deal to the Elonu kid.

Bilas said Elonu could have been a 1st rounder last year...says he's a steal..KEEP HIM MITCH.
yeah...don't forget you have to carry a roster of 13 and powells and mbengas contracts are as cheap as they come
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Old 07-01-2009, 10:32 AM   #13
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Default Re: Off Season Numbers The Cap and Luxury Tax

Does Kobes rumored contract extension help us out any? 3 years at 85 million?
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Old 07-01-2009, 10:38 AM   #14
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Default Re: Off Season Numbers The Cap and Luxury Tax

Whats the difference between "early termination option" and "player option"?
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Old 07-01-2009, 11:43 AM   #15
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Default Re: Off Season Numbers The Cap and Luxury Tax

Quote:
Originally Posted by lakerfreak
Whats the difference between "early termination option" and "player option"?
a player option comes when there is only one year left on the contract and can be used in any multiyear contract.

an eto comes after the 4th year of a 6 year contract. like kobe had an eto this year and a player option for next year.

each has it own limitations, like on a player option that final year can not be for less money so some of the front loaded contracts you see will not have a player option built in. but an eto the final two seasons could have been for less money
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