Christmas GMAT: 2013 FA
Posted: Thu Jan 3, 2013 4:14 pm
BlackIce wrote:
Maximum salaries for Chris Paul and Dwight Howard.
With the new CBA, the maximum salaries are defined by a certain percentage of the cap, and breaks down as:
0-6 Years in NBA: 25% of the cap
7-9 Years in NBA: 30% of the cap
10+ Years in NBA: 35 of the cap
However, there is a catch that the maximum salary can NOT be less than 105% of the players' previous salary.
Here's a little snippet from Larry Coon's NBA CBA FAQ regarding max salaries.A free agent's maximum salary in the first year of a new contract is never less than 105% of his salary in the last year of his previous contract. For example, a ten-year veteran free agent who most recently earned $20 million has a maximum salary of at least $21 million, even if that is above the league-wide maximum. A free agent does not need to remain with the same team in order to receive 105% of his previous salary, although the team that signs him is subject to the same salary cap restrictions as with any other free agent.
http://www.cbafaq.com/salarycap.htm#Q16
Qualifying Offers are NOT Cap Holds || Bird Rights Apply to most Players
Maximum Cap Holds based on Years Of Service
Years in NBA1
Defined maximum salary
0 - 6 ..................7 - 9 ........................10+
25% of cap2 ....... 30% of cap2 ........ 35% of cap2
$12,922,194 ...... $15,506,632 ........ $18,091,071
$13,668,750 ...... $16,402,500 ........ $19,136,250
Cap Hold calculation
The free agent amount depends on the player's previous salary and what kind of free agent he is:
Kind of free agent......................Previous salary ...............Free agent amount
Any ..........................................Minimum salary .................Cap Hold Calc
Larry Bird, except when coming .....................................150% of his previous salary2
off rookie scale contract ............... 1st Round Picks
Larry Bird, except when coming .....................................190% of his previous salary2
off rookie scale contract ................2nd Round Picks
Larry Bird, following the fourth .......................................200% of his previous salary2
season of his rookie scale contract .. 1st Round Picks
Larry Bird, following the fourth ........................................250% of his previous salary2
season of his rookie scale contract ,, 2nd Round Picks**
** Rule uses Average Salary - which we do not have so 1 and 2nd round picks applies.
Chris Paul
Bird Rites
5 years, $107,343,475
$18,668,431
$20,068,563 (increase each season would be 1,400,132)
$21,468,695
$22,868,827
$24,268,959
Everyone Else
4 years, $79,714,198
$18,668,431
$19,508,510 (increase each season would be 840,079)
$20,348,589
$21,188,668
Dwight Howard
Bird Rites
5 years, $117,951,353
$20,513,178
$22,051,666 (increases are 1,538,488)
f$23,590,154
$25,128,642
$26,667,713
Everyone Else
4 years, $87,591,270
$20,513,178
$21,436,271 (923,093 increases)
$22,359,364
$23,282,457
Max for other players (Bynum, Iggy, Josh Smith) would be
non bird rites
18,000,000
18,810,000
19,620,000
20,430,000
MLE - • Three Mid-Level exceptions now exist:
- For non-taxpayers: Mid-Level exception set at $5 million in 2011-12 and 2012-13, growing 3% annually thereafter; maximum contract length is four years.
- For taxpayers: Mid-Level exception set at $3 million, growing 3% annually thereafter; maximum contract length of two years.
- For teams operating with salary cap room: Mid-Level exception set at $2.5 million, growing 3% annually thereafter; maximum contract length of two years
Under tax is $5,150,000 4 yrs 3% raises // Tax payers $3,183,000 3 yrs 3% raises and with cap space $2,500,000M 2 yrs 3% raises
Min
$490,180 (caphold).1yr $788,872 /2 yr $884,293 /3 yrs $916,099 /4 yr $947,907 /5yrs $1,027,424 /6 yrs $1,106,942 /7 yrs $1,186,459 . /8 yrs $1,265,977 /9yrs $1,272,279 /10+ yrs $1,399,507 .
BAE
BAE: BI-ANNUAL EXCEPTION -- This exception is available only to teams that are below the "apron" (i.e., not paying luxury tax, or less than $4 million above the tax line). This determination is made after the exception is used, so a team below the apron cannot use this exception if doing so takes them above the apron. It cannot be used if the team has already used the Taxpayer Mid-Level Exception or the Room Mid-Level exception. It allows a team to sign any free agent, starting at up to the following amounts:
Season First-year salary
2011-12 $1.900 million
2012-13 $1.957 million
2013-14 $2.016 million
First-round pick coming off rookie contract: 250% of previous salary if prior salary was below league average; 200% of previous salary if prior salary was above league average
Bird player: 190% of previous salary (if below average) or 150% (if above average)
Early Bird player: 130% of previous salary
Non-Bird player: 120% of previous salary
Minimum-salary player: Portion of minimum salary not reimbursed by the league
Also in FA thread. Make sure you like the caphold if you want the rights to a player. That caphold is a hit on your salary cap.
When a team uses a non-taxpayer's MLE, they are committing to the fact that they won't be taxpayers
so they invoke a hard cap right around 74 million - VOID *
OPT INs
Ben Gordon
Emeka Okafor
James Jones
Andrei Kirilenko
Trevor Ariza
Marvin Williams
Shawn Marion
Richard Jefferson
Andris Biedrins
Brandon Rush
Linas Kleiza
Ray Allen
Metta World Peace