Page 1 of 1

ESPN Article on next years cap

Posted: Fri Dec 25, 2009 12:18 am
by Dekko1
http://espn.go.com/blog/truehoop/post/_ ... ary-cap-be

By Chris Sheridan

With NBA gate receipts down less than anticipated, the doomsday scenario
of a $6-7 million drop in the salary cap for the 2010-11 season now seems
overly pessimistic.

Everyone still expects the cap to go down heading into the summer of 2010
when the league will have one of its strongest free agent classes in
years, but by how much?

ESPN.com has been digging around for preliminary cap projections, and here
is what we have uncovered:

The Miami Heat are the most conservative in their estimates, basing their
planning for next summer's cap at $52 million.

The New York Knicks are using $53 million as their operating number, and
the New Jersey Nets are being the most optimistic, expecting the cap to
come in between $54 and $55 million.

The league office told teams at the Board of Governors meeting on the eve
of the season opener to expect the cap to come in somewhere around the $52
million range, but agents who have been briefed on updated financial
receipt figures now are using $54 million as their operating number.

The salary cap dropped from $58.68 million in 2008-09 to $57.7 million for
the current season, and the league issued a memo in early July projecting
that Basketball Related Income -- the formula through which the cap is
calculated -- was expected to drop 2.5 to 5 percent this season, hence the
doomsday scenario of a cap drop all the way down south of $51 million.

Gate receipts over the remainder of the season will impact the cap
calculations going forward, so the numbers listed above are merely the
best guestimates available at this time. But one thing is certain: The
Knicks, Heat and Nets -- the teams who will have the most cap space -- are
all hoping that ticket sales and gate receipts continue to come in
stronger than originally forecast, which will give them more money to
throw around when LeBron James, Dwyane Wade, Chris Bosh, Joe Johnson,
Carlos Boozer and a host of others become unrestricted free agents .

Re: ESPN Article on next years cap

Posted: Mon Dec 28, 2009 2:32 pm
by Village Idiot
Would anyone care to calculate what the luxury tax threashold will be next season based on different salary cap figures?

Re: ESPN Article on next years cap

Posted: Mon Dec 28, 2009 10:50 pm
by FGump
The calculation is tricky because of the adjustments for benefits and for miscalculation of BRI projection the prior year, but if you want ballpark numbers to play with linking the two...

50M cap ... 62M tax
51M cap ... 63M tax
52M cap ... 64M tax
53M cap ... 65M tax

Re: ESPN Article on next years cap

Posted: Tue Dec 29, 2009 11:56 am
by Village Idiot
FGump wrote:The calculation is tricky because of the adjustments for benefits and for miscalculation of BRI projection the prior year, but if you want ballpark numbers to play with linking the two...

50M cap ... 62M tax
51M cap ... 63M tax
52M cap ... 64M tax
53M cap ... 65M tax