Page 1 of 1

salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 4:59 am
by big3_8_19_21

Re: salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 5:30 am
by 4ho5ive
And let shrink begin his numbers game.

Re: salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 12:35 pm
by 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?

Re: salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 12:47 pm
by shrink
4ho5ive wrote:And let shrink begin his numbers game.


In the words of the prophet, Speed Buggy

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

Re: salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 12:58 pm
by shrink
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.

Re: salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 1:26 pm
by Basti
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.


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

Re: salary cap set at 58.68 mil

Posted: Wed Jul 9, 2008 1:36 pm
by PeeDee
Thanks much! Now I'm smart.