The Value of Cap Space
Posted: Wed Jan 23, 2008 5:36 am
Last November, Chad Ford wrote a very compelling article on the state of the free agencey class for 2008. You can look at it here if you are an Insider http://insider.espn.go.com/nba/insider/columns/story?columnist=ford_chad&page=FreeAgents--071127.
The gist of the article was that there are 22 of the 30 teams are very close or over the luxury tax threshold. With the exception of the Knicks, it is really becoming a hard cap.
What this means is that most free agents are not going to get good deals. The MLE is not being used by most teams. It was just a few years ago that everyone seemed to be using it. Not anymore.
Over the next few years, teams are going to bring down salaries by not overspending. It will take a few more years for the adjustment to take place. The free agents for the next couple of years are basically going to get screwed.
Why is this important? I think a team that has cap space will be able to pick up free agents with the MLE very easily. We're not talking LeBron and such, but solid rotation players should be able to be picked up for just a partial MLE, and some starters should be available for the MLE.
I know a few of you mentioned that cap space is overrated, and in the past, I agree. But I think there might be a window opening in the next couple of years where cap space could create some huge shopping potential for those well managed teams. I can only assume that Joe D will make sure we're one of them.
The gist of the article was that there are 22 of the 30 teams are very close or over the luxury tax threshold. With the exception of the Knicks, it is really becoming a hard cap.
What this means is that most free agents are not going to get good deals. The MLE is not being used by most teams. It was just a few years ago that everyone seemed to be using it. Not anymore.
Over the next few years, teams are going to bring down salaries by not overspending. It will take a few more years for the adjustment to take place. The free agents for the next couple of years are basically going to get screwed.
Why is this important? I think a team that has cap space will be able to pick up free agents with the MLE very easily. We're not talking LeBron and such, but solid rotation players should be able to be picked up for just a partial MLE, and some starters should be available for the MLE.
I know a few of you mentioned that cap space is overrated, and in the past, I agree. But I think there might be a window opening in the next couple of years where cap space could create some huge shopping potential for those well managed teams. I can only assume that Joe D will make sure we're one of them.