After all that, the cap went up

Post #1 » by **Three34** » Thu Jul 8, 2010 12:57 am

Can Billy Hunter really lose now?

lakerfan10770 · Post #2 » by **lakerfan10770** » Thu Jul 8, 2010 1:13 am

Ok so we now know the following numbers:

Salary Cap - $58,044,000
Luxury Tax Line - $70,307,000
MLE - $5,765,000

So are the max contracts?

0-6 years - $13,668,993
7-9 years - $16,402,552
10+ years - $19,136,310

I calculated this by dividing $58.044M by 51%, then multiplying that amount by 48.04%, and finally multiplying this amount by 25%, 30% & 35% respectively.

Dunkenstein · Post #3 » by **Dunkenstein** » Thu Jul 8, 2010 8:10 am

Here are max salaries I got from a usually accurate source of mine:
25% 13,603,750
30% 16,324,500
35% 19,045,250

lakerfan10770 · Post #4 » by **lakerfan10770** » Thu Jul 8, 2010 8:36 am

Dunkenstein wrote:Here are max salaries I got from a usually accurate source of mine:
25% 13,603,750
30% 16,324,500
35% 19,045,250

Thanks Dunk

Mezotarkus · Post #5 » by **Mezotarkus** » Sat Jul 17, 2010 3:22 pm

Sure Billy Hunter can lose. The question has never been about about total league revenues but rather how the economics of the league are split between owners and players.

Mezotarkus · Post #6 » by **Mezotarkus** » Sat Jul 17, 2010 3:29 pm

Dunkenstein wrote:Here are max salaries I got from a usually accurate source of mine:
25% 13,603,750
30% 16,324,500
35% 19,045,250

Those don't seem to match up precisely to the salary cap mechanics.

Post #7 » by **Three34** » Sat Jul 17, 2010 3:31 pm

They're right, though.

mysticbb · Post #8 » by **mysticbb** » Sat Jul 17, 2010 4:36 pm

Mezotarkus wrote:Those don't seem to match up precisely to the salary cap mechanics.

You probably think that, because the max salary isn't based on the salary cap, but on 48.04% of the BRI (basketball related income). The salary cap is 51% of the BRI. That should explain the difference here you have in mind.

Mezotarkus · Post #9 » by **Mezotarkus** » Sat Jul 17, 2010 4:44 pm

mysticbb wrote:
Mezotarkus wrote:Those don't seem to match up precisely to the salary cap mechanics.

You probably think that, because the max salary isn't based on the salary cap, but on 48.04% of the BRI (basketball related income). The salary cap is 51% of the BRI. That should explain the difference here you have in mind.

If you take the current cap amount divided by .51 and multiply the result by .4804 and then compute the 25%, 30% and 35% salary levels based on that amount you do not derive the numbers above.

mysticbb · Post #10 » by **mysticbb** » Sat Jul 17, 2010 5:00 pm

Mezotarkus wrote:If you take the current cap amount divided by .51 and multiply the result by .4804 and then compute the 25%, 30% and 35% salary levels based on that amount you do not derive the numbers above.

Ah, that is what you mean. Yeah, there are slightly off, but not by much. But that was also the case in previous years. Not quite sure where the difference comes from, but I'm rather sure Dunkenstein's numbers are correct. They fit into the numbers from previous years.

answerthink · Post #11 » by **answerthink** » Sat Jul 17, 2010 10:24 pm

The reverse calculation being applied above will not work because the calculation of the salary cap and the calculation of the 48.04% salary cap each contains adjustments based upon the interplay of BRI with both Projected BRI and Total Salary and Benefits. However, the adjustments are calculated differently for each of the two formulas.

In order to calculate the 48.04% salary cap (and thus the max contract values) from the salary cap number which was set at $58.044 million for next season, you need to first calculate the Projected BRI that the league was using. This can be done using several algebraic equations.

The actual calculations, to within a very small rounding error, can be found here: http://heathoops.net/salary-cap/