''Apron'' questions

[U boj]

I'm spliting this into two posts....

So, there is the Chicago Bulls salary situation for the 2012./2013. season:


Derrick Rose $ 15,506,632
Carlos Boozer $ 15,000,000
Luol Deng $13,365,000
Joakim Noah $ 11,300,000
Rip Hamilton $ 5,000,000
Taj Gibson $ 2,155,811
Jimmy Butler $ 1,066,920

+extended Omer Asik at his max(which is $ 5,000,000)

+

A roster charge if the team has fewer than 12 players (players under contract, free agents included in team salary, players given offer sheets, and first round draft picks). The roster charge is equal to the rookie minimum salary for each player fewer than 12. For example, if there are 11 players included in team salary, then an amount equal to the rookie minimum salary is added to the team salary1; if the roster is completely empty, then 12 times the rookie minimum salary is added to the team salary. This roster charge only applies during the offseason

.

http://www.cbafaq.com/salarycap.htm#Q14

Combined for 8 players: $ 68,394,363+4x $473,604( $1,894,416)=$ 70,288,779

In 2012-13 the tax level is determined by taking 53.51% of projected BRI (see question number 13), subtracting projected benefits, and dividing by the number of teams in the league1. For 2012-13 the tax level is guaranteed to be no less than $70.307 million.

1. So, my first question would be: Am I missing something when it comes to overall amount of money that counts when it comes to deciding if the team has the non-tax payers MLE vs. taxpayers MLE? And which one do the Bulls have?


According to the numbers above the Bulls would have the non-tax payers MLE since they are under the lux tax but everyone connected to the Bulls is already talking about them having just the taxpayers MLE

If you go through the no.14 in L.Coon's faq you can find that determining whether a team is over the salary cap has some differences with determining the team salary in relation to the Bi-Annual, Non-Taxpayer Mid-Level, and Taxpayer Mid-Level exceptions.

Two additional questions here related to that:

1.a. Chicago Bulls have the Nikola Mirotić cap hold.
http://www.shamsports.com/content/pages ... /bulls.jsp

My question would be if that cap hold falls into this category:

The amount of any required tenders for the team's draft picks is included.

which is one of the parts when determining the team salary in relation to the Bi-Annual, Non-Taxpayer Mid-Level, and Taxpayer Mid-Level exceptions.

http://www.cbafaq.com/salarycap.htm#Q14

And what is ''the amount of any required tender for the team's draft pick'' anyway?

1.b. It also includes this:

Cap holds for first round draft picks are excluded.

Given the fact the Bulls are picking in the first round does it mean you count just 3x $ 473,604 to the total number above since there would be 9 players on the roster?

[U boj]

2. This question comes to the better understanding of the ''apron'' itself and rules regarding crossing it.

I've bookmarked this article months ago to help me understand the new CBA better. It explains some of this new and confusing things very well, especially concerning crossing thar $4 million over the tax line.

So:

Every team can use the full mid-level exception, provided doing so does not take the team more than $4 million over the tax line.

If you use the full mid-level to get to or approach that barrier looming $4 million over the tax line, you cannot cross it by re-signing your own free agents via Larry Bird Rights. You can cross it to sign rookies or guys on veteran minimum contracts.

http://www.blogabull.com/2011/11/26/258 ... h-them-and

But, it seems Larry Coon's faq has a different view on this one:

Again, this exception is only available to teams that are below the "apron," i.e., below the point $4 million above the tax line. Teams above the apron instead must use the smaller Taxpayer Mid-Level exception (see below). Further, any team that uses its Non-Taxpayer Mid-Level exception cannot go above the apron for the remainder of that season. In other words, once a team uses its Non-Taxpayer Mid-Level exception, the apron effectively becomes a hard cap for the remainder of that season. This eliminates any potential loophole where a team could first use its full Non-Taxpayer Mid-Level exception and subsequently add salary to go above the apron, since adding salary first and then using the exception would be illegal.

http://www.cbafaq.com/salarycap.htm#Q25

So, is the article wrong?

I've been operating under this particular idea before reading the faq:

The Bulls are under the tax even AFTER extending Asik>they would have the the non-taxpayers MLE to use>once they use it they can sign rookies and vet minimum guys to cross the ''apron''.

And it seems everyone is convinced the Bulls will just have the taxpayers MLE. Also, Larry Coon seems pretty clear that you can't cross that apron under any circumstances. No adding salary, even with rookies and vet minimum players?!

[Dunkenstein]

You've asked a lot of questions, so I'll try to explain the Bulls' situation as I see it, rather than try to answer your specific questions.

First of all, understand that even if a team is under the tax line before using the MLE, if using the MLE would take it over the apron then the team is limited to using the Taxpayer MLE.

Secondly, in your salary number of $70,288,779, you are not factoring in the Bulls' first round draft picks. As Larry points out in #50: "Unsigned first round picks are included in team salary immediately upon their selection in the draft. They count as 100% of the scale salary for that pick." So you have to factor in the cap holds for both Mirotic and their own 2012 first round pick. Of course you would be able to remove two of the roster charges from your number. And I also assume that you're assuming that the Bulls will waive all three of Watson, Brewer and Korver who each have non-guaranteed contracts.

All that being said, the Bulls cannot use the Non-Taxpayer's MLE of $5M because that would take them over the apron (which is $4M above the tax line of $70.307 million). So they are limited to using the Taxpayers MLE.

The quote from blogabull is irrelevant since the Bulls won't be able to use the Non-Taxpayer's MLE which they refer to as the Full MLE.

Also understand that when Larry says in #25 that "once a team uses the Non-Taxpayer Mid-Level exception, the apron effectively becomes a hard cap for the remainder of that season", this applies only to a team that uses the Non-Taxpayer MLE, not to a team which uses the Taxpayer MLE.

Therefore, the Bulls will be able to use both the Taxpayer MLE and whatever available exceptions they need to sign veteran free agents, even if it takes them over the apron.

[U boj]

You've asked a lot of questions, so I'll try to explain the Bulls' situation as I see it, rather than try to answer your specific questions.

Thank you for trying to help good sir.

First of all, understand that even if a team is under the tax line before using the MLE, if using the MLE would take it over the apron then the team is limited to using the Taxpayer MLE.

I should made this clearer. I wasn't talking about using the full amount of the non-taxpayers MLE.

Secondly, in your salary number of $70,288,779, you are not factoring in the Bulls' first round draft picks. As Larry points out in #50: "Unsigned first round picks are included in team salary immediately upon their selection in the draft. They count as 100% of the scale salary for that pick." So you have to factor in the cap holds for both Mirotic and their own 2012 first round pick. Of course you would be able to remove two of the roster charges from your number. And I also assume that you're assuming that the Bulls will waive all three of Watson, Brewer and Korver who each have non-guaranteed contracts.

This is where I think you are wrong(or I'm missing something as usual). Read #14 where Larry points out the difference in determining the team salary in relation to the Bi-Annual, Non-Taxpayer Mid-Level, and Taxpayer Mid-Level exceptions , and for Sign-and-Trade transactions vs. determining team salaries (for example, to determine whether a team is over the salary cap).

For these purposes (i.e., for determining whether the team salary is above or below the apron) they use the team salary as defined above, with the following modifications including:

The amount of any required tenders for the team's draft picks is included.

Cap holds for first round draft picks are excluded.

That's why I wanted to understand what does those two points really mean.

All that being said, the Bulls cannot use the Non-Taxpayer's MLE of $5M because that would take them over the apron (which is $4M above the tax line of $70.307 million). So they are limited to using the Taxpayers MLE.

The quote from blogabull is irrelevant since the Bulls won't be able to use the Non-Taxpayer's MLE which they refer to as the Full MLE.

Also understand that when Larry says in #25 that "once a team uses the Non-Taxpayer Mid-Level exception, the apron effectively becomes a hard cap for the remainder of that season", this applies only to a team that uses the Non-Taxpayer MLE, not to a team which uses the Taxpayer MLE.

Therefore, the Bulls will be able to use both the Taxpayer MLE and whatever available exceptions they need to sign veteran free agents, even if it takes them over the apron.

It also says this:

TAXPAYER MID-LEVEL EXCEPTION -- This exception is available only when a team is above the "apron" (i.e., with a team salary $4 million or more above the tax line). This determination is made after the exception is used, so a team below the apron must use this exception rather than the Non-Taxpayer Mid-Level exception if doing so takes them above the apron.

The Bulls will obviously be under the apron.

I was talking about the different situation. Using the non-taxpayers MLE to get to or approach that barrier looming $4 million over the tax line and THEN cross it by signing rookies and vet minimum players.

I need to adjust my number though, totally forgot Korver is not fully unguaranteed.

[DBoys]

"Using the non-taxpayers MLE to get to or approach that barrier looming $4 million over the tax line and THEN cross it by ..."

You cannot cross the apron line for any reason if you use the non-tax MLE. No exceptions under any circumstances. So all the cap hold rules and so on for that situation work accordingly.

[Dunkenstein]

The reality of the Bulls situation is that they are unlikely to use any MLE to sign a player. Jerry Reinsdorf is known to be willing to be a luxury taxpayer if he believes he has a team which has a chance of winning a championship. With Rose likely out for the bulk of the season, and Deng out for the early portion of the season, it's unlikely that Jerry will view the Bulls as a championship contender next season. Therefore it's also unlikely that he will want to pay more tax in 2012-13 than he absolutely has to.

So with Mirotic under contract to a European team, I could easily see the Bulls drafting another first rounder who will spend next season overseas. Then after waiving the three players with conditional contracts, and filling the remaining roster slots with minimum-salaried players, I'm sure Gar Forman will be given the mission of moving an unnecessary contract in order to get the Bulls under the tax limit.

I'm sure they'd love to find some team to take Boozer off their hands. And they may be able to do that if they agree to take a cheaper contract in return. Another possibility would be to move Hamilton.

In summation: 1) don't look for the Bulls to use the MLE next season if it takes or keeps them over the tax limit; and 2) look for the Bulls to try to shed salary to make sure they're under the tax limit.