Doubt on maximum salary

[Jose]

In Larry Coon's FAQ appears this:

"Players' maximum salaries are never less than 105% of their previous salary. For example, a ten-year veteran who earned $20 million in 2006-07 has a maximum salary of $22.1 million in 2007-08, even though that is above the league-wide maximum."

First of all, should it be $21 million instead of $22.1 million??

We don't know the figures of next CBA, but let's imagine that everything continues more or less the same, all the figures, 10.5% and so on, how much is the maximum contract one team can offer to its own Larry Bird's players if the player is already over the maximum? Imagine the same player in the example $20 million, how much is the maximum contract?:

a) 20/22.1/24.2/26.3/28.4/30.5
b) 20/21/22/23/24/25
c) None of the above

Excuses and thanks a lot

[bgwizarfan]

I think it was about a year ago we covered this exact thing. For a new contract (i.e. if the player made 20 million one year), the maximum would be $21 million, assuming the actual maximums are less than that, which htey obvoiusly are. However, if a player was making 20 million in year 1 of a new contract, he could be making $22.1 million the next year assuming maximum raises

so your situation for A) would be correct if $20 million was the first year of a new contract.

B would not be correct.... though it could be stiputlated that way, the situation you're trying to describe would go as follows:

Last year of last contract: $20 million
1st year of new maximum contract: $21 million (105%)
2nd year of new maximum contract: $23.1 milion (110.5% of $21 million)
3rd year of maximum contract: $25.2 million ....etc etc..

[Dunkenstein]

The key to the sentence "Players' maximum salaries are never less than 105% of their previous salary" are the words "never less". That's the minimum allowed for the new salary. The maximum is 110.5% of the previous salary. Hence the $22.1M figure. Therefore, as bgwiz says, A is correct.

Will we have to remember this for the Finals?

[Jose]

Thanks a lot. I tried to check this board yesterday, and I see now that was also clearly explained in a question on LeBron James Sorry about that