Salary Cap Set At $57.7 Million For 09-10 Season

[rayray2k8]

http://realgm.com/src_wiretap_archiv..._09_10_season/


The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.

The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement.

The new Salary Cap and tax level go into effect at 12:01 a.m. ET on Wednesday, July 8, when the league’s “moratorium period” ends and teams can begin signing free agents and making trades.

The mid-level exception is $5.854 million for the 2009-10 season and the minimum team salary, which is set at 75% of the Salary Cap, is $43.275 million.


spurs gonna have to dig deeper in their pockets this year.

[anakha]

Calling on the number crunchers...

[lurker23]

This is good news for the Spurs regarding the recruiting of Antonio McDyess. However, I'll let number crunchers like Bruno deal with the numerical details of this.

On another note, it's a good thing that the Spurs decided that they could go over the luxury tax this year. Otherwise, it would have been greatly debilitating to try and get under $69.9 million.

[lurker23]

On another note, it's a good thing that the Spurs decided that they could go over the luxury tax this year. Otherwise, it would have been greatly debilitating to try and get under $69.9 million.

To further explain this part, I'll quote Bruno from the beginning of the offseason:

Spurs 09-10 salaries :

Players with a guaranteed salary :
Spurs will have 8 players with a fully guaranteed contract and without team or player options.
Salaries for these 8 players are :
Tim Duncan: $22,183,220
Tony Parker: $12,600,000
Manu Ginobili: $10,728,130
Kurt Thomas: $3,800,000
Roger Mason: $3,780,000
Matt Bonner: $3,256,000
George Hill: $1,081,680
Ian Mahinmi: $899,700
The total salary for these 8 players is $58,328,730

Players with a partially guaranteed salary:
Bruce Bowen has a salary of $4M. Only 50% is guaranteed if he is waived before August 1st. After that, the contract becomes fully guaranteed.
Fabricio Oberto has a salary of $3.8M. Only 50% is guaranteed if he is waived before July 1st. After that, the contract becomes fully guaranteed.
These contracts are also very interesting trade assets for Spurs.

Player with a player option:
Michael Finley has a $2.5M player option for the 08-09 season. He must decide to pick or not before July 1st. So far, he hasn't made a choice.

Player with a non-guaranteed salary:
Marcus Williams contract is likely fully non-guaranteed and likely becomes more and more guaranteed with the summer advancing. His full salary for 09-10 is $825,497. Given the non-guaranteed nature of his contract, I won't talk about him in the rest of this post.

Spurs payroll:
Spurs payroll before the free agency will depend on Finley's choice and Spurs' choice for Bowen and Oberto.
We can expect that Spurs cut both Bowen and Oberto to save money. If Finley pick his option, Spurs payroll will be $64.7M for 9 players. If he doesn't, Spurs payroll will be $62.2M for 8 players.

So, with Finley picking up his option, the Spurs would have had $64.7 million committed. Assuming the Jefferson trade doesn't happen, the Spurs would have had $5.2 million to fill at least 4 roster spots. In other words, if Peter Holt had refused to go over the luxury tax, we would likely be looking at last year's roster, plus 4 contracts at the minimum salary.

[dbestpro]

The Spurs look like they are at 71.1 mil for 10 players. Add the big 5.8 mil and another 2.1 mil for the rest puts us at 79 mil. Luxury tax would be an additional 5 mil. Numbers are best guess. Holt is going to need to sell some tickets.

[vander]

thanks Finley, your 5 mil from cuban wasn't enough? you decide spurs should also pay 5 mil for nothing

[tp2021]

In other words, if Peter Holt had refused to go over the luxury tax, we would likely be looking at last year's roster, plus 4 contracts at the minimum salary.

that !

Also, I believe Bruno has said that a lower tax line makes it harder for Detroit to make a comparable offer to Dice as the Spurs.

[poeticism707]

The Spurs look like they are at 71.1 mil for 10 players. Add the big 5.8 mil and another 2.1 mil for the rest puts us at 79 mil. Luxury tax would be an additional 5 mil. Numbers are best guess. Holt is going to need to sell some tickets.

You heard it here first, people: everyone, boycott going to Spurs games!!!

Joking, of course.

[timvp]

That's about a million dollars lower than many expected. From my quick calculations, the Pistons have less than $2.5M to offer McDyess in the first year.

The cap coming in low is good news for the Spurs as long as Holt is willing to pay a ton of luxury tax dollars this year.

[Dro210]

Everybody go buy season tickets and a tractor!

[Marcus Bryant]

That's about a million dollars lower than many expected. From my quick calculations, the Pistons have less than $2.5M to offer McDyess in the first year.

The cap coming in low is good news for the Spurs as long as Holt is willing to pay a ton of luxury tax dollars this year.

If I had to guess, Holt signed on for two seasons of paying a significant luxury tax bill. If the Spurs don't trade, Mason, Ginobili, Bonner, Haislip, and Finley's contracts are up next summer. When all is said and done, even with the prospect of Splitter joining and Ginobili being re-signed, the Spurs should be able to pare payroll a little bit. And, of course, in the summer of 2011, Parker and Jefferson's deals are up. From then on, I think the Spurs are back to milking the lux tax.

[Spursmania]

Wasn't Detroit waiting for this news to see what they could offer Dyess? Well, now we know. Spurs' offer looks much better. I bet we hear of a signing very soon. And, hopefully it's with the Spurs.

[Spursmania]

Guys, Holt really opened his pocketbook.

I'm going to support this team-guess it's time for me to go the fan shop and pick up a new jersey or two. And, I did renew my season tickets.

[Danny.Zhu]

I don't get it. From my understanding, the maths is simple.

1. If you are going to pay luxury tax, you wish the line is as high as possible, so you could pay as little luxury tax as possible.
2. If you are not going to pay luxury tax, you wish the line is as low as possible, so you could get as much subsidies as possible.

Of course in the case of McDyess this can make us more compe ive compared with Piston, but remember, Magics and Cavs are above the line and in the same position as the Spurs.

[Spurs9]

I'll be going to a good amount of games next season.

[picnroll]

Can an MLE contract be backloaded to reduce the luxury tax? Push a big chunk into the partial year which has the advantage also in the value of the partial in a trade?

[coyotes_geek]

Can an MLE contract be backloaded to reduce the luxury tax? Push a big chunk into the partial year which has the advantage also in the value of the partial in a trade?

You can defer salary, but it doesn't affect the cap amount, or how much luxury tax would be owed.

[tp2021]

Recently I sat down with owner friends of mine and they were sure to point out to me that the Spurs are going to be more willing to go over the cap than other teams because they have several owners as opposed to a good amount of teams who only have a few.

Great info

[Slinkyman]

After years of the spurs asking free agents to take less money to come here for once the spurs are actually asking a player to take more money to come to SA? For the love of God, DICE TAKE THE MONEY! Be greedy! Don't you need to feed your kids? DAMN!

[lurker23]

I don't get it. From my understanding, the maths is simple.

1. If you are going to pay luxury tax, you wish the line is as high as possible, so you could pay as little luxury tax as possible.
2. If you are not going to pay luxury tax, you wish the line is as low as possible, so you could get as much subsidies as possible.

Of course in the case of McDyess this can make us more compe ive compared with Piston, but remember, Magics and Cavs are above the line and in the same position as the Spurs.

You've pretty much hit the nail on the head. The only reason people are happy is because a lower tax number decreases Detroit's spending power. As you pointed out, the Magic and Cavs are in the same exact boat as the Spurs as far as ability to spend the MLE goes. However, many view the Spurs biggest compe or for McDyess as the Pistons, as we feel his decision is mostly money vs. loyalty. As the money factor becomes more lopsided, Spurs fans hope that loyalty goes out the window.

[Spursmania]

After years of the spurs asking free agents to take less money to come here for once the spurs are actually asking a player to take more money to come to SA? For the love of God, DICE TAKE THE MONEY! Be greedy! Don't you need to feed your kids? DAMN!

[coyotes_geek]

CG: The 08-09 luxury tax payers were announced. Looks like Holt & Co will get about $2.9 mil from last year's tax pool to help mitigate the hit they're going to take this year.

**********

In the private memo to teams, the NBA reported what the seven franchises paying luxury tax had to give up to the rest of the league. The list included: The New York Knicks ($23.7 million), Dallas Mavericks ($23.6 million), Cleveland Cavaliers ($13.7 million), Boston Celtics ($8.29 million), Los Angeles Lakers ($7.1 million), Portland Trail Blazers ($5.8 million) and Phoenix Suns ($4.9 million).

http://sports.yahoo.com/nba/news;_yl...yhoo&type=lgns

[crc21209]

Guys, Holt really opened his pocketbook.

I'm going to support this team-guess it's time for me to go the fan shop and pick up a new jersey or two. And, I did renew my season tickets.

Speaking of picking up a new jersey, the Spurs Fan Shop at the AT&T now has Replica Richard Jefferson jerseys in both home and away colors. They are also available at spursfanshop.com. Just thought I'd let everyone know in case some people didnt know.

[crc21209]

I'll be going to a good amount of games next season.

Same here.

[rayray2k8]

Can't call Holt cheap anymore.