Page 1 of 1

Implications of a hard cap for the Cavs?

Posted: Wed Jun 29, 2011 6:53 pm
by Pula_86
Realgm just posted a story about the owners pushing for a hard cap of $45 million. I know we are way over that number as it stands right now. As I understand a hard cap, there are not exceptions or even allowances to sign draft picks if you are over the cap. Lets assume (I don't think a hard cap will be in place) that a hard cap is implemented. The Cavs salary is projected to be at $54.5 million before taking into account our rookie salaries and any trades. Does a hard cap just allow you to negotiate a buyout? As long as the player is not on your roster, does the salary count on your cap number? I would assume the Cavs would simply buyout Jamison or Davis to get under the cap. Is my understanding of this correct?

Re: Implications of a hard cap for the Cavs?

Posted: Wed Jun 29, 2011 8:16 pm
by mcfly1204
If they institute a hard cap, they would likely have non-guaranteed contracts as well as the restructuring of current contracts.

Re: Implications of a hard cap for the Cavs?

Posted: Wed Jun 29, 2011 8:38 pm
by tidho
There is no way they'll have a hard cap. Its just a signal that the owners will be negotiating from an extreme position and we're likely in for a long one.

Even if draft picks essentially create cap holds I think there will always be veteran minimum exceptions. The players may cave on other exceptions but vet min is here to stay.

The hard cap will be phased in and I really don't think they'll touch existing contracts with amnesty type provisions. They'd basically be opening themselves up to about 100 individual lawsuits and even under the protections provided by an organized labor negotiation that would be a gigantic headache.

If its $45M they probably will say that's effective for the 13/14 season, and teams will have until then for contracts to fall off their books and plan accordingly. That way even teams with 'excessive' commitments beyond that season (like the Heat) will have ample opportunity to make apropriate adjustments.

I hope they do stick with a hard cap and use the incremental portion of the players share of revenuw from year to year to either fund some sort of post career benefits for players or just pay out as annual bonuses outside negotiated salary.

Re: Implications of a hard cap for the Cavs?

Posted: Thu Jun 30, 2011 2:26 am
by Triumph36
A hard cap is bad for the Cavs unless it's that rumored "flex cap" (soft cap at ~60M, hard cap at a higher amt).

Re: Implications of a hard cap for the Cavs?

Posted: Thu Jun 30, 2011 3:58 am
by TheOUTLAW
The Hard Cap would be if the Owners decided to play serious hard ball. I'm not sure it'll ever happen since they have guaranteed contracts, but I see that as a very hard sell to the players union.

Re: Implications of a hard cap for the Cavs?

Posted: Thu Jun 30, 2011 5:26 pm
by B Mac
What this tells me is that its going to be a very very looooong lockout. I wouldnt be suprised if the entire season is cancelled. The only saving grace is that NBA players are horrible with their money and may cave halfway through the lockout when they realize they arent getting gamechecks anymore.

In all honesty as much as I dont want to go a whole year without basketball, it might be the best thing for the Cavs.

Re: Implications of a hard cap for the Cavs?

Posted: Thu Jun 30, 2011 5:43 pm
by The Duke
I actually think that the hard cap will be good for Cavs long term.

Re: Implications of a hard cap for the Cavs?

Posted: Thu Jun 30, 2011 6:15 pm
by Triumph36
The Duke wrote:I actually think that the hard cap will be good for Cavs long term.
Why?

They are one of the few teams with an owner who is willing to spend almost any amount of money to put a contender on the floor. That is extremely, extremely valuable and something not many fans can say about their team.

Really, Gilbert's willingness to spend was their only advantage over other teams. Enacting a hard cap (unless its the flex cap) relinquishes that advantage.

Re: Implications of a hard cap for the Cavs?

Posted: Sun Jul 10, 2011 2:52 am
by Laowai
Look for a very long lock-out.This isn't just about the players versus the owners.It is owners versus the owners as well.

There is a majority of owners small & mid market teams as well as teams that own NHL teams that will stand firm.Some of the NBA/NHL owners like the Raptors/Leafs as profitable but they run franchises like a business. Team owners in Charlotte, Indy, Memphis, Philly, Milwaukee, Minny, SAC are bleeding money. Phoenix even though they are profitable the owner has taken huge hits in other businesses.
While Cleveland's owner has thrown money at the club it has been unsuccessful since they lost LBJ.

A hard cap or at least a flexible cap with a max about 60 million gives basically a neutral playing field for most teams. The loss of exemptions such as TPE, mid level & bi-annual will not allow teams like LA & Dallas go grossly over the cap. Some will be phased in over 2 year period to be fair. Teams with 2 superstars would be unlikely and it will be then up to the best GMs to fashion teams.

Re: Implications of a hard cap for the Cavs?

Posted: Sun Jul 10, 2011 4:52 pm
by gflem
With the upcoming expirings of Baron and Antawn along with the extra draft picks (meaning rookie scale contracts) and the fact that the most drastic changes would likely being phased in over the course of several seasons, it would seem that the Cavs are in a position to roll with whatever changes the new CBA will have.
On the competitive side it would likely mean that any shortcuts like sign & trades for our expirings would be difficult to accomodate. I wonder if the real reason the TPE wasnt used is due to the team wanting to have some flexibility going forward rather than picking up a large longer term contract. For the Cavs it may mean a longer rebuild time, but by reducing the opportunity to take shortcuts it may also prevent the team from making errors in judgement by going for a quick fix. It seems to me that the team is willing to take the longer term rebuild at this point so that might be a moot point anyway.
A hard cap would seem to hurt veteran teams the most, with aging stars not playing to the level of their contract said team would be seriously hamstrung in that event. I cant see the union giving up guaranteed contracts though, and it seems like the owners would be better off doing that than to actually go with the hard cap. If it is an either/or situation with a hard cap or the elimination of guaranteed contracts it will be a long stoppage unfortunately, as neither would be appealing to the players imo.

Re: Implications of a hard cap for the Cavs?

Posted: Tue Jul 12, 2011 11:27 am
by kiwibrindle
A Hard cap is awesome for all teams in general guys.

First, A long lockout means less Heat games to watch. Win!

Second, Back before things like caps, teams that drafted well did well. Win for all teams w/o zero state taxes (Florda). Levels the playing field.

Third, if your stupid and make bad trades no guaranteed contracts and less long term contracts help teams cut ties quicker. Win for all fans.

Fourth, Players in all leagues need to be paid for good hard work. All these guys who play hard in their contract year and then after they sign their deal take it easy would stop. Win for all fans again.

Fifth, In the real world there are limits that make sense. If the entire league is losing money then the reality of supply and demand will take over. Again a win for all fans agains overpriced everything at NBA games.

Sixth, Cavs and every other team will have to make hard decisions like every business out there. Without a CBA. All past contracts are worthless and null and void. Win for Fans again.

Finally, I'd love to see more hard play and less hughs and kisses (before and after games). Bring back the days of having Enforcers like Lonny Shelton and Rick Mahorn. Maybe this will help make players work harder against each other on the court and at both ends of the court too. May make games more interesting. How many of us turn on the game with only a few minutes to go and only if its close. Basketball is a your man's game. Long guaranteed contracts in this game are stupid. And one dimensional players need a chance at both ends of the court. How many of us who coach teach defense and a good hard foul to change a better players ability to score at will.

Work hard, then get paid or get out!!!!

Re: Implications of a hard cap for the Cavs?

Posted: Sat Jul 30, 2011 2:43 am
by old rem
tidho wrote:There is no way they'll have a hard cap. Its just a signal that the owners will be negotiating from an extreme position and we're likely in for a long one.

Even if draft picks essentially create cap holds I think there will always be veteran minimum exceptions. The players may cave on other exceptions but vet min is here to stay.

The hard cap will be phased in and I really don't think they'll touch existing contracts with amnesty type provisions. They'd basically be opening themselves up to about 100 individual lawsuits and even under the protections provided by an organized labor negotiation that would be a gigantic headache.

If its $45M they probably will say that's effective for the 13/14 season, and teams will have until then for contracts to fall off their books and plan accordingly. That way even teams with 'excessive' commitments beyond that season (like the Heat) will have ample opportunity to make apropriate adjustments.

I hope they do stick with a hard cap and use the incremental portion of the players share of revenuw from year to year to either fund some sort of post career benefits for players or just pay out as annual bonuses outside negotiated salary.


No way there is a hard cap at $45 mill but at $60 mill? Possible. Probably the players won't go with a hard cap and in the end there will be SOME check on the free spenders but the whole thing won't be an extreme change and likely won't much matter to the Cavs.

Re: Implications of a hard cap for the Cavs?

Posted: Sat Aug 13, 2011 6:35 pm
by heathmalc
I'm not sure which way things will turn out, but I do believe that some changes need to be made, and that the lock-out is a good thing overall, in the long run.

I would guess that there will be a stricter version of the salary cap, but not as drastic as people seem to be saying. I also think that it would be in the best interest of everyone (including the players), if long-term guaranteed contracts were done away with. A Guaranteed contract shouldn't be longer than two years - this would prevent players who have one great year from getting overpaid, and causing a team to pay someone who wasn't helping the team reach it's goals. In the real world of employment, if you don't perform your job to the standard expected, then you get canned. To make things even on both sides, I would change the rule that abolished signing bonuses. Signing bonuses would be guaranteed, and would allow for supply and demand... that way if two teams (or more) were fighting over a single player, then the team who was willing to give a bigger signing bonus, and better contract, would have a better chance at signing a player. Signing bonuses would not be counted toward a salary cap.

Finally, like the NFL, there would be a "franchise player" tag, or similar tag, allowing a team to keep it's best player and face of the franchise.