Can a team use the full MLE then do a sign and trade if they never exceed the luxury tax?
So for example, this off-season could the Rockets use the full MLE then do a sign and trade sending out Eric Gordon for Danilo Gallinari?
Hard Cap
Re: Hard Cap
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DBoys
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Re: Hard Cap
NYG wrote:Can a team use the full MLE then do a sign and trade if they never exceed the luxury tax?
Yes, an over-cap team that stays under the tax line gets the Non-Taxpayer MLE, and can do sign-and-trades.
Re: Hard Cap
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NYG
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Re: Hard Cap
DBoys wrote:NYG wrote:Can a team use the full MLE then do a sign and trade if they never exceed the luxury tax?
Yes, an over-cap team that stays under the tax line gets the Non-Taxpayer MLE, and can do sign-and-trades.
But then they can’t exceed the luxury tax after using the non tax MLE, right?
Re: Hard Cap
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giberish
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Re: Hard Cap
NYG wrote:DBoys wrote:NYG wrote:Can a team use the full MLE then do a sign and trade if they never exceed the luxury tax?
Yes, an over-cap team that stays under the tax line gets the Non-Taxpayer MLE, and can do sign-and-trades.
But then they can’t exceed the luxury tax after using the non tax MLE, right?
They can't exceed the hard-cap after using the full MLE. (or adding a player with a S&T) The hard cap is set at the apron which is a few $M above the tax line.
In general I prefer to use 'no hard cap MLE' and either 'full MLE' or 'hard cap MLE' as it has nothing to do with paying luxury taxes.