Does suspended portion of contract falls off the team salary
Does suspended portion of contract falls off the team salary
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Does suspended portion of contract falls off the team salary
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?
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- Scoot McGroot
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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.
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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?
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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.
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(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.
.
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