Salary Cap set at $57.7M

lakerfan10770 · Post #1 » by **lakerfan10770** » Wed Jul 8, 2009 3:08 am

Per Wiretap:

The National Basketball Association today announced that the Salary Cap for the 2009-10 season will be $57.7 million. The tax level for the 2009-10 season has been set at $69.92 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $69.92 million.

The 2008-09 Salary Cap was $58.68 million and the tax level was $71.15 million. Although league-wide revenue increased 2.5% this past season, the decrease in the Salary Cap and tax level for the 2009-10 season is the result of the formula used to set the Cap and tax under the terms of the collective bargaining agreement.

The new Salary Cap and tax level go into effect at 12:01 a.m. ET on Wednesday, July 8, when the league’s “moratorium period” ends and teams can begin signing free agents and making trades.

The mid-level exception is $5.854 million for the 2009-10 season and the minimum team salary, which is set at 75% of the Salary Cap, is $43.275 million.

Post #2 » by **Three34** » Wed Jul 8, 2009 2:55 pm

This is the real news:

The NBA's ballyhooed free-agent summer of 2010 might have quietly taken another hit late Tuesday night.

In a memo announcing next season's salary cap and luxury-tax threshold, sent out shortly before the league's annual July moratorium on signings and trades was lifted at 12:01 a.m. Wednesday, NBA teams also received tentative projections from the league warning that the cap is estimated to drop to somewhere between $50.4 million and $53.6 million for the 2010-11 season.

The official league memorandum, obtained by ESPN.com, forecasts a dip in basketball-related income in the 2009-10 season of 2.5 percent to 5 percent, which threatens to take the 2010-11 cap down some $5 million to $8 million from last season's $58.7 million salary cap.

Biiiiiiiig freaking drop. Baaaaaaaaaaad freaking times.

NetsForce · Post #3 » by **NetsForce** » Wed Jul 8, 2009 3:31 pm

The Nets still have enough cap space to try and sign a big name free agent - fail at it - and sign numerous role players who will handicap their team for years to come. Hooray!

So Cal Blazer Fan · Post #4 » by **So Cal Blazer Fan** » Wed Jul 8, 2009 3:49 pm

Sham wrote:Biiiiiiiig freaking drop. Baaaaaaaaaaad freaking times.

I'm interested in seeing how this projection - now that's at least one step more 'real' - will affect those teams who have been moving towards clearing cap space for next summer. Will they:

a) continue the project and go even further, realizing that they will need an even lower team salary figure than they might have originally projected in order to try to reach that initial goal of a certain amount of cap space?

b) continue the project but be content with having less cap room than they might have originally projected?

c) abandon the project altogether and seek to find alternate ways to build their team?

It will seemingly be very interesting to watch player transactions over the next 12 months....

lakerfan10770 · Post #5 » by **lakerfan10770** » Wed Jul 8, 2009 4:59 pm

So do we know what the max contracts are?

I see on the ESPN TM, that they have Chris Paul's salary at $13,520,500. So if that is correct, then is it:

0-6 - $13,520,500
7-9 - $16,224,600
10+ - $18,928,700

Post #6 » by **Three34** » Wed Jul 8, 2009 5:23 pm

golfer2 · Post #7 » by **golfer2** » Wed Jul 8, 2009 5:43 pm

lakerfan10770 wrote:So do we know what the max contracts are?

I see on the ESPN TM, that they have Chris Paul's salary at $13,520,500. So if that is correct, then is it:

0-6 - $13,520,500
7-9 - $16,224,600
10+ - $18,928,700

Isn't 25% of 57,700,000 = 14,425,000?

Where does the 13,520,500 come from?

Post #8 » by **Three34** » Wed Jul 8, 2009 5:45 pm

When calculating maximum salaries, a salary cap of 48.04% of BRI is used instead of 51%.