Lower Cap and Lebron, Wade, etc.

[deviljets7]

Hey guys, I need some help in figuring out how the new reports about the 2010/11 cap affects the amount of money Lebron, Wade etc. can get in 2010 from their current team and a new team.

On a $50.4 million cap the maximum for a player with 7-9 years experience would be $15.12 million, but based on this from Larry Coon, these FAs can get more than that.

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. A free agent does not need to remain with the same team in order to receive 105% of his previous salary, although the team that signs him is subject to the same salary cap restrictions as with any other free agent.

For Lebron, Wade and Bosh 105% of their previous salary ($15,779,912) would equal $16,568,907.

Now here's where I'm confused. If you have the Bird rights on a free agent, you can offer a 10.5% raise off the previous season, compared to just 8.5% if you don't have Bird rights. Does this mean CLE can offer $17,436,802 (09/10 salary * 1.105) to Lebron next year? Also what is the max another team, like the Nets or Knicks can offer? Would they be able to offer an 8.5% raise, or just a 5% raise?

Needless to say, this cap news could give CLE, MIA, TOR, etc. a huge advantage in terms of retaining their star free agents.

[Modern_epic]

The starting salary for any team is the same, and it is 105% of the last year of their prior deal. The only difference there is that their last team can offer them 10.5% raises.

Of course, at a $50 million dollar cap, it might be better for these guys not to use their options in '10. In that case, they would get the full 10.5% raise.

They can then choose to sign an extension that summer, but still the first year of the extension would be at a salary no higher than the max any team could offer them. They just get the benefit of the higher raises.

[Smoke[MaxX]]

Aren't the benefits of retaining one's own FA negligible considering that S&T is still a possibility?

[Modern_epic]

No... you can just say you aren't going to do that. It isn't very hard; the player can't force you to.