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Old 05-15-2013, 12:52 AM   #1
Robster89
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Default Possible significant increase in salary cap and tax threshold?

I'm not claiming this as fact, but I have read in a few places about this, and apparently Mason and Ireland discussed it today (though I did not hear them
).

Projections are that league revenues for the year ending June 30 have increased 20% over the 2010/2011 season (the last time the cap was adjusted as there was no adjustment in 2011-2012 due to the lockout).
Stern actually said that he expected revenue to top the 5 B mark.

This would mean a corresponding 20% cap and tax increase, with the salary cap raising to about 70M and the tax threshold to 85M.

Although this would not open any cap space for the Lakers this year, it could have a HUGE impact on decreasing the amount of tax the Lakers will owe as a repeat offender. (I have read as much as 100M in tax savings for the Lakers).

This could explain why the Lakers seem OK with keeping Pau, despite some pundits claiming that they must dump him due to tax Armageddon.

And it could offer even more cap space in 2014. and beyond.
I actually think the Lakers will make a full scale push on LBJ (though I think the chances of getting him are slim).

For my part, I think the Lakers operate by a different set of rules due to our huge revenues (namely, the TW deal which reportedly brings in 200M/year alone). I think we are quite fortunate to be fans of a franchise that has won 5 titles in the last 13 years, and 10 in the last 32. I think if we sign Dwight, management has put us in an incredible position to build another dynasty in the coming years.

Next season might be frustrating at times, but the future is very bright!
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Old 05-15-2013, 06:21 AM   #2
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by Robster89
I'm not claiming this as fact, but I have read in a few places about this, and apparently Mason and Ireland discussed it today (though I did not hear them
).

Projections are that league revenues for the year ending June 30 have increased 20% over the 2010/2011 season (the last time the cap was adjusted as there was no adjustment in 2011-2012 due to the lockout).
Stern actually said that he expected revenue to top the 5 B mark.

This would mean a corresponding 20% cap and tax increase, with the salary cap raising to about 70M and the tax threshold to 85M.

Although this would not open any cap space for the Lakers this year, it could have a HUGE impact on decreasing the amount of tax the Lakers will owe as a repeat offender. (I have read as much as 100M in tax savings for the Lakers).

This could explain why the Lakers seem OK with keeping Pau, despite some pundits claiming that they must dump him due to tax Armageddon.

And it could offer even more cap space in 2014. and beyond.
I actually think the Lakers will make a full scale push on LBJ (though I think the chances of getting him are slim).

For my part, I think the Lakers operate by a different set of rules due to our huge revenues (namely, the TW deal which reportedly brings in 200M/year alone). I think we are quite fortunate to be fans of a franchise that has won 5 titles in the last 13 years, and 10 in the last 32. I think if we sign Dwight, management has put us in an incredible position to build another dynasty in the coming years.

Next season might be frustrating at times, but the future is very bright!


While it sounds nice isn't it a contracted agreement ?
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Old 05-15-2013, 11:09 AM   #3
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by MJ(Mean John)
While it sounds nice isn't it a contracted agreement ?

Please explain what you mean.
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Old 05-15-2013, 10:13 PM   #4
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by DKLaker
Please explain what you mean.

I think MJ is talking about the reduction that the players agreed to take under the new CBA.

I still believe we could be looking at a significant increase however.
Again, because of the strike shortened season a year ago, 2010-2011 was the last cap adjustment.
That was a down season, bad economy etc.
Since then:
Economy has strengthened in the US.
Amazingly successful Olympics for the NBA, with the Dream Team etc. This has strengthened the leagues position globally. I have read in many places that global growth for the NBA is incredibly strong.
The creation of the super teams is also good for PR, and ratings. Miami/LAL etc.

Again, Stern projected revenues for the current year would hit 5B, a 20% increase from 2 years ago.
The cap is set at 44.71% of league revenues, divided by 30 teams.
By my calculations, that yields a cap over 70 million, and I have seen the 70 M figure many times.

I'm not saying this is fact, I'm just saying I have seen this in enough places that it may be real.

Also, saw that the Lakers could reduce the impact of the Nash contract in 2014. If he was waived, the Lakers could eat his remaining 10 mil over the next 3 years, reducing the cap hit in 2014 from 10 to 3 mil. I'm not saying they will do it, and if they did I think they would do it respectfully, but it is an option if Nash is simply done by 2014. This would open up even more cap space for us in 2014.

If the cap does increase significantly I think the Lakers will make a big push on Lebron. He is a once in a generation player in his prime. I could even see Kobe coming back at a reduced salary and helping to recruit him.

Either way, we will be in great shape to remake our roster next year and beyond.

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Old 05-16-2013, 11:44 AM   #5
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Default Re: Possible significant increase in salary cap and tax threshold?

I don't think it's as simple as the league makes so much divide by 30 teams and that's your cap.

It's set at a % of of the money the league makes balanced out against what they players are paid. That's what all the arguing was about the players share of the income. If the players salaries add up to more than their guaranteed portion the cap could actually be adjusted down despite an increase in revenues.
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Old 05-16-2013, 09:23 PM   #6
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by daily
I don't think it's as simple as the league makes so much divide by 30 teams and that's your cap.

It's set at a % of of the money the league makes balanced out against what they players are paid. That's what all the arguing was about the players share of the income. If the players salaries add up to more than their guaranteed portion the cap could actually be adjusted down despite an increase in revenues.

Too much speculation going on about this......I'm not sure the NBA office is even sure what is going on

It won't be long before they release the cap figure, so lets all just sit back and wait
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Old 06-03-2013, 03:01 AM   #7
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Default Re: Possible significant increase in salary cap and tax threshold?

Early projections look to have cap in the 59 to 60 million dollar area
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Old 06-03-2013, 10:49 AM   #8
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by daily
Early projections look to have cap in the 59 to 60 million dollar area


http://bleacherreport.com/articles/1...00k-in-2013-14

According to this article it's will only go up to $58.5 mil with the tax threshold at $70 million. This is lower than anyone expected.
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Old 06-03-2013, 03:41 PM   #9
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by DKLaker
http://bleacherreport.com/articles/1...00k-in-2013-14

According to this article it's will only go up to $58.5 mil with the tax threshold at $70 million. This is lower than anyone expected.

That means Lakers will try to ship out Pau. Hopefully we can get fair value in return
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Old 06-03-2013, 04:27 PM   #10
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by bladefd
That means Lakers will try to ship out Pau. Hopefully we can get fair value in return

Conventional Wisdom says you are right, that being said, it also depends on if we sign Dwight or not as well as whatever input Kobe is afforded. If you look at the big picture, after this season we may re-sign Pau at a favorable amount 8-10 million, re-sign Kobe at a more reasonable amount and Metta will go off the books..... at this point there are so many possibilities for the future.
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Old 06-03-2013, 11:26 PM   #11
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by DKLaker
Conventional Wisdom says you are right, that being said, it also depends on if we sign Dwight or not as well as whatever input Kobe is afforded. If you look at the big picture, after this season we may re-sign Pau at a favorable amount 8-10 million, re-sign Kobe at a more reasonable amount and Metta will go off the books..... at this point there are so many possibilities for the future.

if dwight signs...MWP is getting amnestied for sure...and Pau may get traded too

Pau costs lakers around 65Mil in salary
MWP costs 31MIL in salary
blakes costs 17mil in salary

I wont mind if all 3 are gone by next year...I would keep Pau if Howard leaves.
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Old 06-05-2013, 02:30 PM   #12
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by Lakers_Kobe_Fan
if dwight signs...MWP is getting amnestied for sure...and Pau may get traded too

Pau costs lakers around 65Mil in salary
MWP costs 31MIL in salary
blakes costs 17mil in salary

I wont mind if all 3 are gone by next year...I would keep Pau if Howard leaves.

I don't think it's necessarily that easy for the Lakers to trade Pau if Howard resigns. Maybe there's a team like Houston or Dallas that would take him, but outside of that I'm just not sure anybody would want to take on his salary. If you look at the teams with cap space I don't see them having the pieces to move that the Lakers need and I don't think they would want to completely absorb that salary.
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Old 06-05-2013, 03:17 PM   #13
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by dd24
I don't think it's necessarily that easy for the Lakers to trade Pau if Howard resigns. Maybe there's a team like Houston or Dallas that would take him, but outside of that I'm just not sure anybody would want to take on his salary. If you look at the teams with cap space I don't see them having the pieces to move that the Lakers need and I don't think they would want to completely absorb that salary.


Pau could have HUGE trade value as a $19 million expirer for a team who needs to clear cap space for next year's 2014-15 free agent class.
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Old 06-05-2013, 04:27 PM   #14
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by DKLaker
Pau could have HUGE trade value as a $19 million expirer for a team who needs to clear cap space for next year's 2014-15 free agent class.

That would mean they would have to give back roughly 19 million in contracts (because they wouldn't be under the cap). Which then would mean the Lakers no longer have an expirer, they have long term contracts and no flexibility.
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Old 06-05-2013, 10:34 PM   #15
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Default Re: Possible significant increase in salary cap and tax threshold?

Quote:
Originally Posted by dd24
That would mean they would have to give back roughly 19 million in contracts (because they wouldn't be under the cap). Which then would mean the Lakers no longer have an expirer, they have long term contracts and no flexibility.

As long as we would have Kobe and Dwight, I seriously doubt we would ever have cap space anyway.....if we can get good players for an expirer we had better take it.

In fact, If you remove both Dwight and Pau from last year's we would still have been over the cap.

Last edited by DKLaker : 06-05-2013 at 10:38 PM.
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