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Hard Cap
Posted: Wed Feb 19, 2020 3:54 pm
by NYG
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?
Re: Hard Cap
Posted: Wed Feb 19, 2020 4:19 pm
by DBoys
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
Posted: Wed Feb 19, 2020 5:40 pm
by NYG
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
Posted: Wed Feb 19, 2020 7:07 pm
by giberish
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.