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Does suspended portion of contract falls off the team salary

Posted: Wed Mar 5, 2008 11:34 pm
by Macedonianbull
I mean, when a player with huge salary is suspended even for 1 game (just as Dirk is right now), does his salary ($200K ... his salary divided by 82 games ???) gets off the cap, thus saving Mavericks $400K because of the luxury tax?

Posted: Wed Mar 5, 2008 11:38 pm
by FGump

Posted: Wed Mar 5, 2008 11:40 pm
by Macedonianbull
Thanks Gump.

Posted: Wed Mar 5, 2008 11:44 pm
by Macedonianbull
Than how much exactly did this one game suspension cost Nowitzki?

1/90 of this years salary?

If it was for 2 games , 2/90, right?

Posted: Thu Mar 6, 2008 12:01 am
by lakerfan10770
Macedonianbull wrote:Than how much exactly did this one game suspension cost Nowitzki?

1/90 of this years salary?

If it was for 2 games , 2/90, right?


Wouldn't it be 1/82 or $199,513, ($16,360,094/82)

So did Mark Cuban just save $99,757 in Luxury Tax?

Posted: Thu Mar 6, 2008 12:05 am
by Macedonianbull
Interesting question, isn't it?

Lets say, San Antonio is just over the luxury tax limit.

'Timmy, you have high salary, I need you too hard-foul this guy so we can shed $100,000 to get our payroll below the limit. Lets do this and hope Stue Jackson does his thing.'

Posted: Sat Mar 8, 2008 1:31 am
by Scoot McGroot
From the Ron Artest scenario, Pacers found out that if a player is suspended for more than 5 consecutive games, the team involved can stop paying them the money, and I think it didn't count against the luxury tax. However, anything under 5 consecutive games, the team/player must pay the game salary to a charity.

Posted: Sat Mar 8, 2008 6:33 am
by Dunkenstein
Scoot McGroot wrote:From the Ron Artest scenario, Pacers found out that if a player is suspended for more than 5 consecutive games, the team involved can stop paying them the money, and I think it didn't count against the luxury tax. However, anything under 5 consecutive games, the team/player must pay the game salary to a charity.

I'd never heard that. Do you have any link to the CBA, Larry Coon's FAQ or even a newspaper article that corroborates what you're saying?

Posted: Sat Mar 8, 2008 8:46 am
by FGump
To clear up some confusion floating through this thread using the CBA ...

(The following pertains to league-imposed suspensions)

1. This suspension cost Dirk 1/110 (not 1/90, not 1/82, not 1/170) of his salary per CBA rule. (VI - 1)
2. Any suspension of 5 games or less requires the team to pay the lost compensation to the league which then distributes it to charity in a predesignated fashion (VI - 6)
3. The league is required to collect a minimum of 5-game-pay (only) from the team on a longer than 5 game suspension, to go to charity, leaving the implication that a greater suspension might not be paid to the league by the team (VI-6)
4. The league's Total Salary (for escrow issues) is reduced by 50% of the amount "retained by the NBA." [VII-12-(h)-(4)] In games 6+, when the money is not necessarily sent to the NBA but is kept by the team, does that constitute money being "retained by the NBA" since an arm of the NBA (a team) ends up with the money and the player doesn't? It is fuzzy. But it does say explicitly that this (whatever it means) is the ONLY adjustment to salary arising from a suspension.
5. Per VII-12-(f)-(3), Team Salary for tax purposes is computed the same way as it is for league escrow/audit purposes.

Even after looking at the rules, the bottom line is still less than explicit, as far as I can find.

One part seems fairly clear: a suspension of 5 games or less will reduce Team Salary (and tax) by 50% of the amount the player forfeits. The team will still pay the same amount of payroll as otherwise, but that forfeited amount is sent to the league which then sends it to charity.

Games 6+? While I find good rationale for 0% taxed, and I find the wording hazy, my BEST GUESS from trying to read closely is that the team does not pay the salary and that the team's cap/tax number will include 50% of the forfeited salary.


.

Posted: Sat Mar 8, 2008 6:01 pm
by Dunkenstein
Thanks for clearing that up.