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Regarding the $4 mil over tax limit.

Posted: Fri Dec 2, 2011 5:29 am
by JES12
I figured more info would have surfaced by now, but I have not seen it yet.

http://nba-point-forward.si.com/2011/11 ... rd-rights/

Except:
If you use the full mid-level to get to or approach that barrier looming $4 million over the tax line, you cannot cross it by re-signing your own free agents via Larry Bird Rights. You can cross it to sign rookies or players on veteran minimum contracts. (Update: 8:29 p.m.: The NBA informs me via Twitter that teams in fact cannot cross that barrier $4 million over the tax line via veteran’s minimum deals if you first use the full mid-level).


I ask because Dallas is in the same boat a Boston.

If the lux tax is $71 mil and the $4 mil over limit is $75 $12.7 mil to work with.

My question is: What if Dallas says "forget the MLE" Can we then sign, say Chandler to $10 mil, Butler to $5 mil, Barea to $3 mil and then some vet min contracts? Anotherwards, is that whole re-signing free agent rule only if you use the MLE?

Honestly, I don't really want that to happen, but curious if that is a limitation we are facing.

Re: Regarding the $4 mil over tax limit.

Posted: Fri Dec 2, 2011 5:58 am
by lakerfan10770
JES12 wrote:I figured more info would have surfaced by now, but I have not seen it yet.

http://nba-point-forward.si.com/2011/11 ... rd-rights/

Except:
If you use the full mid-level to get to or approach that barrier looming $4 million over the tax line, you cannot cross it by re-signing your own free agents via Larry Bird Rights. You can cross it to sign rookies or players on veteran minimum contracts. (Update: 8:29 p.m.: The NBA informs me via Twitter that teams in fact cannot cross that barrier $4 million over the tax line via veteran’s minimum deals if you first use the full mid-level).


I ask because Dallas is in the same boat a Boston.

If the lux tax is $71 mil and the $4 mil over limit is $75 $12.7 mil to work with.

My question is: What if Dallas says "forget the MLE" Can we then sign, say Chandler to $10 mil, Butler to $5 mil, Barea to $3 mil and then some vet min contracts? Anotherwards, is that whole re-signing free agent rule only if you use the MLE?

Honestly, I don't really want that to happen, but curious if that is a limitation we are facing.


There was an article about why the Heat have to waive Mike Miller and it laid out this exact scenario. Essentially you are correct and the Mavs could do exactly as you say, except they will have the Taxpayer MLE of $3M also (up to 3 years w/4.5% raises).

http://espn.go.com/blog/truehoop/miamiheat/post/_/id/10158/why-heat-are-likely-to-part-with-mike-miller

Re: Regarding the $4 mil over tax limit.

Posted: Fri Dec 2, 2011 2:34 pm
by DBoys
Using the 5M mle creates a hard cap at 4M above the MLE. That means there will undoubtedly be cap holds for empty salary slots and unsigned rookies on scale, written into the new CBA, that force enough room to be left to fill those remaining slots after using the MLE.

Re: Regarding the $4 mil over tax limit.

Posted: Fri Dec 2, 2011 2:41 pm
by DBoys
"What if Dallas says "forget the MLE" Can we then sign, say Chandler to $10 mil, Butler to $5 mil, Barea to $3 mil and then some vet min contracts? "

Dallas can sign all those players at those numbers, or even larger, and also use the smaller MLE, if they wish to.

Re: Regarding the $4 mil over tax limit.

Posted: Fri Dec 2, 2011 3:55 pm
by JES12
Thank you very much for that clarification.