salary cap set at 58.68 mil
Posted: Wed Jul 9, 2008 4:59 am
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4ho5ive wrote:And let shrink begin his numbers game.
PeeDee wrote: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 wrote:PeeDee wrote: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.