salary cap set at 58.68 mil

[big3_8_19_21]

http://basketball.realgm.com/src_wireta ... 0_million/

MLE is 5.585 mil

lux tax 71.15 mil

[4ho5ive]

And let shrink begin his numbers game.

[PeeDee]

Alright capheads, Explain me this...

Why is the lux tax 12+ million above the salary cap? Seems to me the that the lux tax should kick in when you go 1 penny over the cap. What am I missing?

[shrink]

And let shrink begin his numbers game.

In the words of the prophet, Speed Buggy

"a-room-a-zoom-zoom!"

[shrink]

Alright capheads, Explain me this...

Why is the lux tax 12+ million above the salary cap? Seems to me the that the lux tax should kick in when you go 1 penny over the cap. What am I missing?

I'm over-simplifying here, but the two thresholds (cap and lux) create three levels a team can be in. Think of the lux as an additional penalty for those that are completely ignoring the penalties imposed by going over the salary cap. For example, if a team is over the salary cap, they have to salary match in their trades.

The NBA uses a soft cap so that teams can re-sign their players so that fans won't lose interest when their favorite players walk. With a handful of other exceptions to the salary cap, right now, only a few teams actually stay under the salary cap. However, the lux provides a severe enough penalty that only a handful stray above that number.

I glossed over a lot here, but I hope that basically answers the question.

[Basti]

Alright capheads, Explain me this...

Why is the lux tax 12+ million above the salary cap? Seems to me the that the lux tax should kick in when you go 1 penny over the cap. What am I missing?

I'm over-simplifying here, but the two thresholds (cap and lux) create three levels a team can be in. Think of the lux as an additional penalty for those that are completely ignoring the penalties imposed by going over the salary cap. For example, if a team is over the salary cap, they have to salary match in their trades.

The NBA uses a soft cap so that teams can re-sign their players so that fans won't lose interest when their favorite players walk. With a handful of other exceptions to the salary cap, right now, only a few teams actually stay under the salary cap. However, the lux provides a severe enough penalty that only a handful stray above that number.

I glossed over a lot here, but I hope that basically answers the question.

I would also add that it is also good to have such a big margin between the two trash holds because if Team A decides to trade a player whose contract is still in the rules (125%+100k) for a player from Team B with a lesser contract Team A shouldn't be punished twice because Team B decided to pay more for a player.

I know this is a bad example and I'm probably as much oversymplifying as Shrink but IMO it is another scenario why there's a bigger margin between cap and lux

[PeeDee]

Thanks much! Now I'm smart.