2013/14 Luxury Tax Payers, as it stands at 11.52am GMT on 13th January 2014
January 13th, 2014

(click here for the Instant Gratification Version) Determining a team’s luxury tax number is not quite as simple as looking at their payroll and comparing it to the luxury tax threshold. This is about 98% of the job, of course, but there are a couple of other tweaks. For salary minutia fans like myself, these tweaks are important. The following list of adjustments is quoted from Larry Coon’s CBA FAQ, a page from which my entire career is sourced. 1) Cap holds and exceptions are ignored. 2) Any “unlikely bonuses” that were actually earned are added to the team salary. 3) Any “likely bonuses” that were not earned are subtracted from the team salary. 4) Any trade bonuses for players received in trade after the last regular season game are added to the team salary. 5) Any amounts from settlements of grievances are added to the team salary. 6) Players who signed as free agents (i.e., not draft picks) and make less than the two-year minimum salary are taxed at the minimum salary for a two-year veteran and not their actual salary. For minimum salary players whose salary is partially paid by the league only the amount paid by the team (the two-year minimum salary) is taxed. The salaries of players waived via the Amnesty provision are exempt from the luxury tax. A team’s luxury tax number is taken from the last day of the regular season, then adjusted for the above criteria. We of course aren’t at the last day of the regular season yet, hence the title of this post, so points 2, 3 and 4 can be ignored for now. (Bonuses are adjusted with hindsight. For now, we can only work with what we know.) Point number 1 means removing the cap holds and unused exceptions that […]

Posted by at 6:22 PM

The amount of cap room teams will actually have
June 8th, 2013

All salary information is taken from this website’s own salary pages. All figures taken from the day of publication – if subsequent trades/signings are made, then adjust accordingly. NOTE: All cap space amounts are calculated to an estimated salary cap of $58.5 million. This inexact figure is the most recent (and thus accurate) projection released yet, and will suffice for now. When the actual amount is calculated/announced, the sums below will be altered accordingly. It is vital – VITAL – that you understand what a “cap hold” is before you read this. An explanation can be found here.     Atlanta Hawks Committed salary for 2013/14: $22,497,415 (view full forecast) Projected cap space: At most, $35,504,580, but not really. If Atlanta renounce (or lose) Josh Smith, and renounce their remaining free agents (Kyle Korver, Devin Harris, Zaza Pachulia, Johan Petro, Ivan Johnson, Jeff Teague, Dahntay Jones, Hilton Armstrong, Erick Dampier, Etan Thomas, Randolph Morris and Anthony Tolliver), waive DeShawn Stevenson ($2,240,450, fully unguaranteed with no guarantee date), Shelvin Mack ($884,293, fully unguaranteed with no guarantee date) and Mike Scott ($788,872, fully unguaranteed until August 15th, thereafter $100,000 guaranteed) and sell or renounce their first round draft picks (#17 and #18, cap holds of $1,348,200 and $1,280,800), they will have a cap number of $22,995,420 (the committed salary plus nine minimum salary roster charges of $490,180 for having less than twelve things on the cap). (If you want to get really absurd, they could even amnesty Al Horford. Hypotheticals are fun.) This is, however, a maximum amount. And it’s not a realistic one. Smith’s cap hold will be equal to the maximum amount for a nine year veteran, and, while this amount will not be known until the new salary cap figure is determined, a slight increase in the cap will mean a […]

Posted by at 2:22 AM