Hard Cap

LightTheBeam
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Hard Cap 

Post#1 » by LightTheBeam » Mon Jul 10, 2017 5:58 pm

Hey Guys,

Might be a simple question but can someone explain to me what being hard capped is? How are teams like the Raptors and Pistons hardcapped and not able to retain players like KCP while the Warriors and Cavs retain there guys with a much higher figure.

Thanks
Andre Roberstan
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Re: Hard Cap 

Post#2 » by Andre Roberstan » Mon Jul 10, 2017 6:01 pm

http://www.cbafaq.com/salarycap.htm#Q20

The money paragraph:

In other words, when a team is below the Apron and uses its Bi-Annual exception, receives a player who is signed-and-traded, or uses its Mid-Level exception to sign a player to a contract larger than allowed by the Taxpayer Mid-Level exception, the team becomes hard-capped at the Apron for the remainder of that season. This eliminates any potential loophole where a team could first use one of these exceptions and subsequently add salary to go above the Apron, since the reverse -- adding salary first and then using the exception -- would be illegal.


Also, I'm going to move this to the CBA forum because it makes more sense over there.
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HeatFanLifer
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Re: Hard Cap 

Post#3 » by HeatFanLifer » Tue Jul 11, 2017 5:05 am

Due to the reasons noted above, Pistons are hard capped due to using their non-taxpayer MLE on Galloway. If they used taxpayer MLE it would be ok to go over APRON.

Raptors cannot cross the APRON line with the sign and trade of CJ Miles.

At this point in time, the APRON is at approximately $126 million.

This hard cap is effective until June 30th next year.
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DoItALL9
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Re: Hard Cap 

Post#4 » by DoItALL9 » Wed Jul 12, 2017 6:05 pm

Is there a past example that caused this to come into existence? I believe I understand it but it still doesn't seem as if it'd be a problem if it didn't exist with the luxury tax still in effect.
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Re: Hard Cap 

Post#5 » by DBoys » Wed Jul 12, 2017 6:35 pm

It came into being at the same time the NBA changed the MLE setup (2011 CBA), by having various sized MLE's for various types of teams cap-wise. The NBA preferred a hard cap, the players didn't, and the compromise was a system that allowed teams to spend whatever they want, but providing advantages (beyond non-tax) for staying below the tax line, and a set-in-stone spending limit if you used those advantages.

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